How to Get Paid by International Clients as a Freelancer? Best Way to Receive Payments from Overseas

With the rise of cross-border commerce and trade, international transactions have become more prevalent across various industries. Consider a scenario where an electronic product supplier in China needs to collect sample fees from customers in the United States, or a multinational corporation seeking to pay suppliers and contractors located around the world. Similarly, a freelance illustrator from France collaborating with Japanese game developers relies on receiving payments seamlessly from international clients. In this dynamic landscape of global business, effectively managing international payment is essential for businesses and freelancers alike.

Understanding Payment Methods

Freelancers and businesses often rely on several payment methods to receive funds from international clients. Each method comes with its own set of advantages and drawbacks, making it essential for freelancers to choose wisely based on their specific needs and circumstances.

Bank Wire Transfers:

Bank wire transfers are a prevalent method for international payments, offering a direct transfer of funds from one bank account to another. However, this method is not without its challenges. The process can be slow, with transfers taking up to five working days or longer to complete. Moreover, high fees and inflated margins can eat into the freelancer’s earnings, jeopardizing profitable business relationships.

PayPal and Credit Cards:

For smaller transactions requiring short-term assurance, PayPal and credit cards may seem like viable options. PayPal provides features such as dispute resolution, security technology, and fraud protection, making it a relatively secure payment solution. Similarly, credit cards offer convenience and buyer protection benefits. However, both PayPal and credit cards impose higher fees for international transactions, along with hidden charges and foreign exchange rate markups. Additionally, there’s the risk of payment holds or restrictions, leading to delays or cancellations in product delivery.

Paper Checks:

Although paper checks remain a traditional payment method in some contexts, they come with notable disadvantages in today’s digital age. While clients may prefer the familiarity of paper checks for payment, the process can be cumbersome and time-consuming. Paper checks often require manual handling and physical delivery, leading to delays in payment processing. Moreover, checks are susceptible to loss, theft, and fraudulent activities, posing security risks for both the payer and the payee. Additionally, the international processing of paper checks involves additional complexities and costs, including currency conversion fees and extended clearance times.

Why Choose Payoneer?

Amidst the constraints of conventional payment avenues, Payoneer emerges as a groundbreaking solution for freelancers and businesses navigating international transactions seamlessly. Say goodbye to delays, exorbitant fees, and the complexities of currency conversions with Payoneer. By streamlining the payment process, Payoneer empowers users across diverse sectors, whether one operates in translation, programming, design, consulting, B2B, or any other freelance domain, to concentrate on their core work without the hassle of payment method.

When it’s time to receive payments, all you need is an email address to bill your clients worldwide. Requesting payments with Payoneer offers peace of mind, as you can track your payment every step of the way. Moreover, Payoneer provides flexibility to clients, allowing them to pay in the manner that suits them best. It’s a win-win situation for everyone involved.

In the subsequent sections of this essay, we’ll delve deeper into the seamless process of setting up a Payoneer account, sending payment requests, and optimizing financial management. Through real-life examples and practical insights, we’ll illustrate how Payoneer transforms the payment landscape, driving global business growth and facilitating success across borders.

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Understanding Payoneer

A Brief History of Payoneer:

Founded in New York in 2005, Payoneer embarked on a mission to empower businesses and freelancers to access new markets through seamless cross-border payments. Since its inception, Payoneer has experienced significant growth, evolving alongside the ever-changing landscapes of global finance and digital commerce. Today, its expansive network spans over 200 countries and territories, facilitating transactions in more than 150 currencies.

Key Features and Benefits of Payoneer:

  1. Global Payment Service: Payoneer’s Global Payment Service offers users local receiving accounts in major currencies such as USD, EUR, GBP, and JPY, enabling them to receive payments as if they had a local bank account in these regions. This feature is particularly beneficial for freelancers, businesses, and professionals operating on a global scale.
  2. Marketplace Integrations: Payoneer seamlessly integrates with leading online marketplaces like Amazon, Fiverr, and Airbnb, streamlining the payment process for sellers on these platforms.
  3. Mass Payout Services: Businesses can leverage Payoneer to send payments to multiple beneficiaries simultaneously, making it ideal for payroll and supplier payments.
  4. Debit Card: Payoneer provides users with a Mastercard debit card, allowing them to withdraw cash from ATMs or make purchases online and in stores worldwide.
  5. Mobile Application: With its intuitive mobile app, Payoneer empowers users to manage their funds, view transactions, and withdraw funds directly from their smartphones, offering convenience and flexibility on the go.

Payoneer’s Fees

Payoneer's Fees

Payoneer prioritizes the accessibility and affordability of accessing your earnings. Let’s delve into the fee structure and its implications for using Payoneer.

Registration and Account Fees

Opening a Payoneer account comes at no cost, ensuring accessibility for those seeking cross-border payment solutions. Whether you choose a virtual account or opt for a physical card, there are no initial fees. However, inactive accounts may face a $29.95 fee after 12 months of dormancy, if the total transactions fall below $2,000.

Transaction Fees

Payoneer provides flexibility in payments, with varying fees depending on the method. Transfers between Payoneer accounts are typically free, facilitating seamless fund exchanges. Credit or debit card transactions incur a 3% or 1% transfer fee, respectively.

For recurring or batch payments, a 2% fee per transaction allows efficient fund distribution to up to 200 bank accounts. Integration with platforms like Wish, Fiverr, and Upwork enables direct transactions, with fees dictated by each platform’s terms.

Currency Conversion Fees

Converting funds to a different currency incurs additional fees. Payoneer offers two options: a 3.5% fee for using a Payoneer MasterCard and a 0.5% fee for transactions between Payoneer accounts.

Receiving and Withdrawing Payments

Consider David, an e-commerce entrepreneur in China, receiving payments in various currencies. Withdrawals to a different currency carry a fee of up to 1.2%. However, competitive rates apply when converting foreign currency balances to David’s local currency, the Chinese Yuan (CNY).

Simplified Withdrawals for Same-Currency Accounts

For withdrawals to a bank account in the same currency as your Payoneer balance (USD, EUR, or GBP), fixed fees are applicable:

  • EUR: €1.50
  • GBP: £1.50

However, two important considerations must be kept in mind for same-currency withdrawals:

  1. Currency Match: The currency of your bank account must match the currency in your Payoneer account. For instance, a US Dollar bank account in the US is eligible, but a US Dollar account in Germany would not qualify.
  2. Billing Address Restrictions: Your billing address determines eligibility. If you reside in the UK or EU and wish to withdraw euros to a European account or GBP to a UK account, you qualify for the fixed fee. Conversely, if your billing address is in the UK but you prefer to withdraw USD to a US account, the standard fee of up to 2% applies.

Additional Bank Fees to Consider

It’s important to be aware that your local bank might charge additional processing, landing, or intermediary fees when receiving your withdrawal. These fees are separate from Payoneer’s charges and will be deducted by your bank or payment provider.

Setting Up Your Payoneer Account

Setting up a Payoneer account is a straightforward process that enables users to begin receiving international payments quickly and efficiently.

To assist you in setting up your Payoneer account seamlessly, we’ve crafted a comprehensive tutorial that walks you through the registration process step by step. Click the following link to access the tutorial:

Payoneer Tutorial 2024 – How to Create a Payoneer Account Step By Step?

1. Registration Process: To get started with Payoneer, simply click the “Sign Up for Payoneer” button below to access the official website. You’ll be prompted to provide personal information such as your name, email address, date of birth, and contact details. Additionally, you may need to verify your identity by submitting relevant documents, depending on your country of residence and the regulatory requirements.

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If the registration page is not in your local language, please select your language from the menu in the upper right corner.

2. Account Verification: Once you’ve completed the registration process, Payoneer will review your information and verify your account. This may involve providing additional documentation or answering security questions to ensure the integrity of your account.

3. Selecting Payment Methods: After your account is verified, you can choose from a variety of payment methods offered by Payoneer. This includes options such as bank transfers, Payoneer’s Global Payment Service, and the Payoneer Mastercard debit card. Select the payment methods that best suit your needs and preferences.

4. Connecting with Clients and Partners: With your Payoneer account set up and payment methods selected, you can start connecting with clients and partners from around the world. Share your Payoneer account details with clients to receive payments seamlessly, or integrate Payoneer with your preferred online marketplaces for streamlined transactions.

5. Exploring Additional Features: As you familiarize yourself with your Payoneer account, take the time to explore its additional features and functionalities. This includes tools for tracking payments, managing invoices, and accessing customer support resources. By leveraging these features, you can optimize your experience with Payoneer and maximize the benefits of international transactions.

Request a Payment

Receiving payments from your global clients should be effortless, regardless of their location. With Payoneer, all you need is your client’s email address to initiate payments worldwide. Requesting a payment through Payoneer is quick and straightforward, requiring just a few clicks, and provides you with real-time tracking capabilities at every stage. Additionally, your clients will appreciate the array of flexible payment methods you can offer them.

If your business falls into one of the supported categories listed below, you can use Payoneer’s “Request a Payment” feature to seamlessly receive payments from other businesses:

  • Products (supply & logistics)
  • Consulting & management
  • Programming & tech support
  • Content & translation
  • Design & multimedia
  • Marketing performance

Here’s a step-by-step guide to sending payment requests via Payoneer:

  1. Log in to your Payoneer account, navigate to “Get Paid” in the main menu, and choose “Request a payment” section. If it’s your first time using this feature, you’ll need to provide details about your business to verify its nature. This typically includes information such as your line of business and business website. Ensure that the provided URL accurately represents your business’s primary activity and leads to an active website.
  2. Once you’ve submitted the requested documents for business verification, you’ll gain immediate access to start requesting payments. Provide essential details such as the payment amount, currency, due date, and a description of the goods or services provided. Attach any necessary invoices or supporting documents, and submit the request.
  3. Upon submission of the payment request, Payoneer will send an email to your designated payer with instructions on how to make the payment.
  4. You’ll receive a confirmation email once the payment is approved, and another notification when the payment is credited to your Payoneer account. Your client will also receive notification of the successful transaction.

What payment methods are available to my clients?

Here are the main payment methods available to your customers:

  1. Credit/debit card
  2. ACH Debit
  3. Direct bank transfer
  4. Local bank transfer
  5. Payoneer balance
  6. PayPal

payoneer fees

Before finalizing the payment request process, your client has the option to choose who covers the applicable fees. To prevent any confusion, we recommend discussing this matter with your client beforehand.

Withdraw to Bank

Adding a New Bank Account for Withdrawal:

  1. Log in to your Payoneer account.
  2. Navigate to “Bank accounts” in the main menu.
  3. Choose between “Bank accounts for withdrawal” or “Recipient bank accounts.”
  4. Select the account type you wish to add:
    • To add a new bank account for withdrawal, click on the “Your accounts” tab.
    • To add a new recipient bank account for non-Payoneer customers, click on the “Recipient accounts” tab.
  5. Click on “Add bank account.”
  6. Follow the on-screen prompts to enter the bank account details.
    • For Individual accounts: Ensure the account holder name matches your Payoneer account.
    • For Company accounts: Ensure the account holder’s name matches your company name.
  7. If adding a recipient bank account, provide accurate recipient contact details to avoid delays in approval.
  8. Once submitted, Payoneer will review the details within approximately 1~3 business days. Look out for an email confirming bank account approval.

Making a Withdrawal:

  1. Sign in to your Payoneer account.
  2. Go to “Withdraw & transfer” and select “Withdraw to bank.”
  3. If no bank account is added, click “Add new” and complete the registration process. If pending approval, Payoneer will notify you.
  4. If a bank account is already added and approved, select the desired card/currency balance for withdrawal.
  5. Choose the bank account for withdrawal and enter the desired amount.
    • If entering the withdrawal amount, Payoneer will calculate the deposit amount with applicable fees.
    • If entering the deposit amount, Payoneer will calculate the withdrawal amount with applicable fees.
  6. Optionally, add a description for the withdrawal (visible in Payoneer, not the bank statement).
  7. Review the details and click “Withdraw” to submit the request. Verify identity if two-step verification is enabled.
  8. After withdrawal submission, review any exchange rate changes and resubmit if necessary.
  9. A confirmation email with withdrawal details will be sent for your reference.

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Frequently Asked Questions (FAQ)

What is the due date on my payment request and who sets it?

The due date on your payment request signifies the deadline by which you anticipate your client to remit the payment. When initiating a new payment request, you have the liberty to establish this date based on your preferences. This due date serves a dual purpose—it guides your client on when to fulfill the payment and also acts as a reference point for determining if a payment is overdue, prompting automated reminders. It’s worth noting that payment requests within Payoneer do not have an expiration date. Consequently, clients can settle them at their convenience, even if the due date has elapsed.

Who can I request payments from?

You have the capability to send payment requests to businesses across the globe, facilitating seamless transactions between professionals and enterprises. For instance, freelancers engaged in various services, such as web development, can leverage Payoneer to request payments from clients commissioning their expertise for projects like website construction. However, it’s essential to understand that Payoneer’s request for a payment feature is not suitable for transactions involving consumers (individuals) making purchases from your online store. Moreover, it is not intended to serve as a payment gateway for e-commerce checkouts.

Where can I view a payment request that I’ve sent?

To access and manage payment requests you’ve initiated, simply login to your Payoneer account and navigate to the main menu. From there, proceed to “Account Activity” and select the “Payment Requests Sent” option. Within the displayed table, you’ll find a comprehensive overview of the payment requests you’ve sent. Click on the specific payment request you wish to manage. Upon selection, you’ll be directed to the “Timeline” tab, providing you with real-time updates on the status of your payment request. For a more detailed breakdown, navigate to the “Details” tab, where you’ll find comprehensive information regarding the payment request, ensuring clarity and transparency throughout the transaction process.

Can I cancel a payment request?

Yes, you can cancel a payment request under certain circumstances:

  • If the transaction with your client is canceled.
  • If there are changes in payment details such as the due date, amount, or description. Since payment requests cannot be edited, you’ll need to cancel the existing request and create a new one with the updated information.
  • If your client attempted to pay via ACH Debit and the payment was declined. While you can’t cancel this request directly, it’s considered invalid, so you can proceed to send a new request. Please note: Only payment requests with a status of “Request pending” can be canceled.

Why does Payoneer ask for identity and business information before I can start requesting payments?

Payoneer requests this information to verify your identity and line of business, ensuring the security and integrity of our payment ecosystem for all users. By verifying identities and businesses, we aim to maintain a safe environment and facilitate smooth payment processes for our community of customers.

Conclusion

In conclusion, navigating international transactions and managing payments with ease is essential for freelancers and businesses operating in today’s global marketplace. Throughout this essay, we’ve explored the challenges associated with traditional payment methods and the advantages of using Payoneer as a solution for seamless cross-border transactions.

From setting up your Payoneer account to sending payment requests, Payoneer offers a comprehensive suite of features and benefits tailored to meet the diverse needs of freelancers and businesses worldwide. By leveraging Payoneer’s global payment service, marketplace integrations, mass payout services, debit cards, and mobile applications, users can streamline their payment processes, optimize financial management, and focus on their core work without being hindered by payment logistics.

Furthermore, Payoneer’s commitment to security, reliability, and customer service ensures a positive experience for users at every step of the payment journey. Whether you’re a freelance professional, small business owner, or online sellers, Payoneer empowers you to expand your reach, access new markets, and grow your business on a global scale.

As the landscape of international commerce continues to evolve, Payoneer remains at the forefront of innovation, providing cutting-edge solutions and unparalleled support to enable users to thrive in an increasingly interconnected world. By embracing Payoneer as your trusted payment partner, you can unlock new opportunities, enhance your financial capabilities, and achieve success in the global marketplace.

In summary, with Payoneer, the future of cross-border payments is brighter than ever before. Join the millions of users worldwide who have embraced Payoneer as their preferred payment solution, and experience the freedom, flexibility, and efficiency it offers for conducting business globally.

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