Payoneer has made it possible for your US customers to pay you with Paypal. This is great news. Read below to find out more.
We’re excited to announce that your US clients can now pay you via PayPal!
This highly requested integration makes the payment process even more flexible. When you request a payment, your US clients will now have the new option of paying via PayPal, alongside the existing options of ACH debit, or credit card. Payments received are automatically withdrawn to your local bank account.
It’s that simple!
Why is this good news?
One problem that has always existed with Paypal is that it has a bit of a monopoly on the payment processing niche online, but you’re only allowed 1 account per person. And if that account ever gets banned, you’re not allowed to create a new one. You can see how this can be a problem for somebody who uses Paypal to get paid, and then they get their account banned for whatever reason.
This person can then create a new account and hope for the best, but it may not last long. They can create an account/s in the names of family or friends, but this gets complicated as not everybody would be willing to give you their personal information to create an account in their name. But even if they did, they are then liable for any tax obligations and any issues that may get created from the usage of that account.
Creating accounts with fake information is also possible, but now you’re really playing with fire in terms of legal problems, such as identity theft. And you risk losing your money. While this is possible, it’s very complicated as you will need good quality proxies and you will need to take all sorts of precautions in order to pull it off. And there’s no guarantees it will work or how long it will work for. This used to be easier years ago, but nowadays I would not attempt it. I never tried this approach myself, but I know people used to do it.
Another issue is that Paypal is not available in many countries where Payoneer is available. So people from those countries can now have their US customers pay them with Paypal through Payoneer, without needing to have a Paypal account. And lastly, Payoneer is much more forgiving than Paypal generally speaking. Let’s just say that you’re way less likely to get banned on Payoneer. And if you do run into any troubles, their customer support is much more available and sensible.
All of that said, having an extra avenue of receiving payments with Paypal is wonderful. Another payment processor that has that option and works well is 2checkout. I think that Paddle works for this too, but I’m not sure.
How do you get paid?
To get paid via Paypal on Payoneer is the same way as you get paid via Credit/Debit cards. You have to send your client a payment request.
Your client will need to provide you some information so that you can send them the payment request:
- First Name
- Last Name
- Country
- State (if you’re from the USA)
- Company Name
- Website URL
- Contact First Name
- Contact Last Name
- Country
- State (if you’re from the USA)
So that’s the information your client needs to give you, depending if they’re paying as a company or as an individual. Then you take the info and you go to your Payoneer account, and you send them the payment request. The client will receive the request in their email inbox, and then they can pay you. If they choose to pay with a credit/debit card they’ll be redirected to a page to insert their card info. If they choose to pay with Paypal, they’ll have to login to their Paypal account and make the payment. And you do not need a Paypal account in order to receive such payments. The money will arrive directly in your Payoneer account.
The fees for receiving such payments are the same as the fees for receiving a payment with a credit/debit card, which is is 3.99% + $0.49 per payment, But that’s actually lower than what Paypal charges people to receive payments, so I assume Payoneer has a special deal with Paypal, And as with credit/debit card payments, the client can choose to pay the fee or not. If they don’t pay it, then you will pay it when you receive the money.
Limitations
Unfortunately, you won’t be able to receive payments via PayPal if your Payoneer account is registered in one of the following:
Countries:
Afghanistan, Bangladesh, Burma, China, Congo, Cuba, Equatorial Guinea, Ghana, Guinea, Haiti, Iran, Iraq, Lebanon, Liberia, Libya, Pakistan, Marshall Islands, Micronesia, Moldova, North Korea, Papua New Guinea, Russia, Switzerland, Syria, and Uzbekistan.
Regions:
Crimea, Donetsk, and Luhansk in Ukraine.
If your account is not in any of the above countries or regions, your payers will be able to pay you using PayPal, depending on their eligibility. But I’m sure that in time they will roll it out and expand it to some or all of the countries/regions mentioned above. I’m pretty sure that for most of these places this is not a limitation imposed by Payoneer, but one imposed by Paypal.
Here is a video I made talking about this:
Conclusion
This is good news, because the more the merrier. Personally I can receive payments on my Paypal account, and I also have a 2checkout account where people can pay me using Paypal. So I have 2 ways of receiving payments with it. Now that Payoneer has made this available, I have 3 ways of getting paid via Paypal. Hooray! :-)