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Payoneer: How Does It Work?

by Moin Uddin Ahmed Tipu

Payoneer is a unique online funds transfer service, through which you can withdraw the funds transferred to you online using a MasterCard debit card, in an ATM, anywhere in the world.



Like most other online payment services, Payoneer demands that you sign up for an account with it, before being in a position to make full use of its cash transfer functionality. Again, as is the case with most other online payment services, the account you get to create on Payoneer is based on your email address. Of course, you have to provide many other personal details when signing up for the account. But all you have to give to someone, in order to have them transfer funds to your Payoneer account, is your email address.


What Makes Payoneer Unique?

What makes Payoneer unique is the fact that it has its own MasterCard debit cards, to facilitate withdrawals, and these cards are available to people from all parts of the world (and they can be used in all parts of the world).
Many of the other online payment services operate under a system where people signing up for accounts have to ‘tie up’ debit or credit cards they already have to the online payments accounts. They can then withdraw funds into those debit or credit cards. But it often happens, due to difficulties in many countries’ banking systems, that funds can’t be added directly from an online account to a (local bank’s) debit or credit card. What Payoneer does is issue its own MasterCard debit card to everyone who signs up for an account with it (at a very low cost). The person hence issued with the card gets to ‘load’ funds into the card from his or her Payoneer account. Those are funds that he or she can withdraw from any MasterCard branded ATM. Those are also funds that he or she can use to pay for stuff (just like funds in any debit or credit card).


Payoneer Service Costs

One would expect an online payment service of Payoneer’s sophistication to be very expensive. But as a matter of fact, Payoneer’s services are not very expensive. They are quite affordable. This is a summary of the costs associated with the Payoneer funds transfer service.

  • Sign up costs: it costs nothing to sign up with Payoneer.


  • MasterCard costs: a nominal fee is charged, to cater for the cost of producing the MasterCard debit card and to cater for the cost of shipping the card to the user.


  • Account operating costs: there are no ledger fees associated with Payoneer accounts.


  • Loading funds: at a certain level, the Payoneer account and the MasterCard debit card associated with it are viewed as separate entities. Transferring funds from the Payoneer account to the debit card (so that they can be withdrawn in an ATM or used to pay for stuff) is referred to as ‘loading’ the card. A small fee is charged when you (as a user) load funds into your Payoneer MasterCard debit card from the Payoneer account.


  • Withdrawal costs: a small fee is charged when you use your Payoneer MasterCard to withdraw funds from an ATM.


It is through these ‘small fees’ that Payoneer gets revenues to sustain itself as a company, and profits to justify its existence as a business.

Sign Up For Payoneer Master Card Here >>>


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