Online banking solutions are gaining rapid popularity, and that means steep competition for disbursement providers, especially for online retail sellers.
For many Amazon FBA sellers, two of the most popular options are Payoneer and TransferWise. But which disbursement solution is better between Payoneer vs TransferWise for Amazon?
This quick article highlights the services and features of both online financial solutions to help you decide which option best suits your Amazon seller account.
What is Payoneer?
Payoneer is a financial service company that came into existence in 2005. The New York-based company offers digital payment services, online money transfers, and also provides users with capital.
Over the years and owing to its impressive services, Payoneer has become the go-to choice for cross-border retail sellers on various e-commerce platforms, including some of the biggest names such as Google, Airbnb, Getty, and Fiverr.
It is no surprise that tons of Amazon sellers use Payoneer to receive funds and make international payments, among other services.
Whether you are a one-person business or an established brand, Payoneer makes it easy to transact across the globe without needing to pay exorbitant transaction charges that are usually associated with transferring money internationally using traditional banks.
When compared to other similar platforms, Payoneer offers reasonable currency exchange fees. Also, transferring funds is pretty fast when you use the platform.
Additionally, Payoneer has a mobile app that works for both iOS and Android devices. This makes it very convenient to request payments, check your balances, and review transactions on the go.
Users can also pay VAT using the platform as well as access detailed reports of their transactions through the online reporting tool.
Payoneer Highlights
- Supports 150 currencies and is available in 200 countries
- Very competitive exchange rates
- Payments (Payoneer to Payoneer) do not carry a fee
- Can be used as a bank account
- Credit and debit cards for making online purchases
Payoneer Pricing
With Payoneer, you can open an account and get a bank account number in USD, GBP, EUR, and more. Your account will work just like your local bank account from a traditional bank, so you can get paid easily from across the world.
Here are the various fees applicable with owning a Payoneer account:
- Get Paid
- Payoneer to Payoneer funds transfers and payments are free.
- Withdrawal from Payoneer to your local bank account – about 0.5%
- Currency conversion fee – up to 2.5%
- Use your receiving account like a local bank account – free for GBP, EUR, and more, and up to 1% for USD, depending on the country.
- Receive payment via credit card – 3%
- Receive payment via ACH bank debit (for US only) – 1%
- Receive payment from marketplaces and companies – fees vary, depending on the marketplace
- Withdraw to Bank
- Withdrawal in your local currency from the same currency balance – $1.50 (USD to USD), £1.50 (GBP to GBP), €1.50 (EUR to EUR)
- Withdrawal in your local currency from a different currency balance – up to 2% of the transaction amount
- Withdrawal in non-local currency – up to 2% of the transaction amount
- Other fees
- Annual account fee – $29.95 (this fee only applies if your Payoneer account or Payoneer card doesn’t have a transaction for 12 months. Active users don’t have to pay this fee).
- Move funds between your Payoneer balances for international payments – 0.5% of the amount to transfer
What is Wise – TransferWise?
TransferWise (now called Wise) was established in 2011 in London, United Kingdom. The financial technology company offers global fund transfer services. That means users can send and receive money from different countries around the world in various currencies.
Wise has incredibly low commission fees as its strong selling point. Compared to other fund transfer services, TransferWise offers cheap bank-to-bank payments between various currencies and between banks in several countries.
TransferWise is a widely popular money transfer service all over the world, and even among Amazon FBA sellers. The reason for this is obvious: Wise is very transparent with its fees (no hidden fees). Plus, the fees are comparatively low.
With Wise, you can exchange currencies with minimal fees, get bank balances with account details, receive a debit card in selected countries, and spend money in various currencies using your debit card.
Similar to Payoneer, transacting across different currencies is quite a breeze with TransferWise. Plus, users can access the platform from both Android and iOS devices for increased convenience.
However, unlike Payoneer, TransferWise does not have a banking license. That means you can’t use it like your regular bank account to earn interests or access capital. (By the way, users can get working capital from Payoneer).
Thankfully, TransferWise is as safe as Payoneer, so you don’t have to worry about your funds.
TransferWise Highlights
- Supports 54 currencies and is available in 80 countries
- Low funds transfer fees with mid-market rates for exchanges
- Peer-to-peer currency transfer service
- Transaction duration in four business days or less
- Supports EUR, GBP, USD, and AUD
- One-time and recurring payment options available
- Handy online fee calculator
- Supports debit cards, bank transfers, SWIFT payments, and Apple Pay
- High Trustpilot rating with thousands of excellent reviews
TransferWise Pricing
Opening an account in Wise is free and you can also hold up to 50 currency balances in your account without incurring additional charges.
However, accounts with more than €15,000 in EUR balance will attract a nominal fee of 0.40% annually.
The following are the fees for card services:
- Wise debit card – £5
- Card replacement – £3
- First 2 ATM withdrawals (up to £200) for the month – free and 1.7% afterward
- Spend using currencies in your Wise account – free
Users get the lowest exchange rate fees possible, and Wise debit cards are acceptable anywhere Visa or MasterCard is accepted.
Receiving Payments with TransferWise
TransferWise offers multi-currency accounts with zero fees for receiving international payments on supported platforms.
Combined with its nominal money transfer fees and no charge for getting payment from across the world, TransferWise seems to be a great choice. But this begs the question: which option is better between Payoneer vs TransferWise for Amazon sellers?
Can I use TransferWise on Amazon?
Unfortunately, Amazon’s list of approved Payment Service Provider (PSP) does not mention TransferWise or Wise, at least not as of November 2021.
That means you can’t use TransferWise on Amazon.
Understandably, many sellers would want to use TransferWise to receive payments on Amazon because of the considerably low fees associated with funds transfers. In fact, Wise has one of the lowest transfer fees in the industry. Sadly, the “borderless” multi-currency digital service isn’t able to cross Amazon’s border at the moment.
But all hope is not lost.
TransferWise is doing all it can to be on Amazon’s approved list of disbursement solution providers. At least, the company has applied to enroll in the world’s largest online retail platform’s PSP program.
Along with over 20 other disbursement solution providers, Wise is currently awaiting Amazon’s decision.
Until Wise receives the green light, sellers will have to keep their fingers crossed and make do with other available Payment Service Providers.
Is there a Workaround for TransferWise Users?
If you are an Amazon seller that previously used TransferWise to receive payment on Amazon, it can be frustrating to learn that the service is discontinued.
But Amazon only wants to make its platform the most trusted and safest store in the world for both sellers and buyers. This is why it introduced the Payment Service Provider program and encouraged interested disbursement solution providers to qualify and join the program.
While Wise has competitive fees, it hasn’t met Amazon’s PSP requirements for now or has not been approved to join the program yet.
In the meantime, Wise or TransferWise users who do not wish to switch to Payoneer or other disbursement solution providers can use a deposit-taking bank to get payments.
A deposit-taking bank refers to your regular bank account from a traditional bank. Keep in mind that the fees for transferring and receiving funds can a lot higher with regular banks than with Payoneer.
You can monitor this page to know when TransferWise (Wise) and other disbursement solutions are enrolled in Amazon’s PSP program.
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Conclusion
Currently, it is glaring which option to choose in this Payoneer vs TransferWise for Amazon comparison. You want to use a disbursement solution that’s supported by Amazon if you are a seller on the platform, and the choice here is Payoneer.
That doesn’t mean TransferWise is lacking in any major way. It just isn’t a good fit for Amazon at the moment, regardless of its low fees, handy currency fee calculator, and fast funds transfer capabilities.
And just in case you don’t want to use Payoneer for whatever reasons, you can use a deposit-taking bank account to receive payments on Amazon.
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