PayPal vs. Payoneer - which one is worse?
Thread poster: José Henrique Lamensdorf

José Henrique Lamensdorf  Identity Verified
Local time: 03:35
English to Portuguese
+ ...
Jul 11, 2018

I had some bias against PayPal for its being expensive and slow. Here in Brazil, they still deduct 6.5~7.5% in fees from whatever I receive through them, and overtly adopt a 3.5% lower-than-market exchange rate to convert payments from overseas into my domestic currency. Bottom line is that PayPal costs me about 10%.

On another front, for clients in the US, there is a thing called eCheck, accepted by both. When a client pays using an eCheck, s/he feels relieved, "I've paid!", because the funds leave their bank account immediately. However an eCheck takes at least an entire week to clear!

Conceptually, while the eCheck does not extend the payment term for the client, it extends the receiving term for the translator. For a comparison, the Brazilian equivalent to an eCheck would be what is called a DOC here (no relation to MS Word's files), which clears overnight, being credited on the next banking day, regardless of the banks involved or their branches' geographic location. Another Brazilian banking contrivance is the TED, which clears in 20 minutes, however only during banking hours (10 AM - 4 PM, Mon-Fri).

On account of numerous complaints, as I discovered yesterday, PayPal payees can disable eChecks as a payment option. The payer usually doesn't know that it takes so long to clear, so it's better that they don't see it as a possible option. As far as I could ascertain, Payoneer does not offer the possibility of disabling eChecks.

My first experience with Payoneer was great. The amount at stake was 2-digit in USD, payment was made from funds the client had with them, and on the next day they were converted and credited to my BR bank account.

The second experience, not so. The amount was slightly under 4 digits in USD, and it took 8 calendar days for the eCheck to clear. As it cleared to Payoneer, and I requested a transfer to my bank account, I received an e-mail saying that it would take FOUR more business days to be credited to my bank account.

In the meantime, PayPal improved. Their usual transfer time to a bank account outside the US was 1-5 business days, however lately credit has been taking place on the very next banking day here in Brazil.

The exchange rate adopted by Payoneer is - as I checked today - 1.9% higher than PayPal's. However PayPal (after deducting their ~7% fee) sets the exchange rate immediately after a transfer is requested, and sticks to it.

Payoneer adds an element of risk, by stating that "The amount above is approximate. The exact amount will be calculated according to the official mid-market rate at the time of transfer. | Note: Additional bank processing fees, landing fees, or intermediary fees may be deducted from the Amount Transferred by your bank or any other payment provider enabling the transfer.", so it's just a guess.

Bottom line is that either way you lose. The key is in finding out how to minimize the loss.

Adriana Papagna

José Henrique Lamensdorf  Identity Verified
Local time: 03:35
English to Portuguese
+ ...
THE EPILOGUE Jul 11, 2018


Today, early morning, I asked Payoneer to transfer the funds to my local bank account in Brazil.

They replied with an e-mail saying that it would take 4 days.

Well, they have already credited to my account just before the end of banking hours here (4 PM)!


Vadim Kadyrov  Identity Verified
Local time: 07:35
Member (2011)
English to Russian
+ ...
Payoneer is a good payment service Jul 12, 2018

I have been using it since 2012, and my overall experience is rather good. You have two American bank accounts, a bank account in Germany, and they are adding new bank accounts constantly.

Why not?

[Edited at 2018-07-12 10:33 GMT]


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PayPal vs. Payoneer - which one is worse?

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