This article is about comparing Paypal with Payoneer as payment options when receiving earnings from affiliate programs like Propellerads here in the Philippines.
Many Filipinos are now making money online and Payoneer is also one of the most reputable payment gateways out there.
Assuming that you are earning online from affiliate programs and you have the option to accept your earnings via Payoneer and Paypal, this article will provide specific differences.
I am going to use Propellerads as a default affiliate program in this article. Propellerads is one of the best affiliate programs out there for bloggers and webmasters, and if you still don’t have a Propellerads account and want to make money with your blog, you can sign-up here.
Propellerads offers three options for Filipinos to receive their earnings. These are Paypal, Payoneer, and direct bank deposit if you reach at least $500.
Bank deposit is the best option as it has no service charge, but what if your earning is below $500?
If you have both Payoneer and Paypal account, this article is for you. I just received my third Payoneer card so it means I’ve been using Payoneer for more than five years now so I can really tell some advantages and disadvantages here.
We will use two sets of earnings. First is $250 and second is $490
Based on my Paypal records, Paypal is taking 8.3% of my earnings, so $250 less 8.3 % or $20.75, I receive $229 inside Paypal account.
I want to withdraw the total amount to my BPI bank account so I proceed. I am going to use the current exchange rate of Paypal which is a dismal ₱48.28 for $1. Since Paypal do not charge for withdrawals more than ₱7,000, I am expecting close to ₱11,068 on my bank account.
Payoneer charges $5 load fee so I receive $245 inside my Payoneer account which I can directly withdraw through any of the Mastercard-supported ATMs here. It is the bank who exchanges the dollar to peso so we can assume that the exchange rate is closely aligned to normal exchange rate which is around ₱50.71 (current).
Okay, so $245 x ₱50.71, I have ₱12,423 that I can withdraw at any ATM. Now, this is where the crazy thing starts. The bank charges from ₱200 (BPI) to ₱250 (BDO) despite Payoneer says $3.15 (₱159), but the shocking reality is when you check your Payoneer account after you withdraw. Your Payoneer card is actually charged from ₱620 to ₱750.
So, ₱12,423 less ₱10,750 (₱10,000 withdrawal plus ₱750 ATM fee), you left with ₱1,673! Will you withdraw this amount knowing you will be charged ₱700? The best thing to do is to use that money to buy something through POS (point of sales). In short, you get ₱10,000 cash plus ₱1,673 spendable through POS.
- Paypal = ₱11,068
- Payoneer = ₱11,673
- Difference = ₱605 – Payoneer wins
Using the first Paypal data above, the result is the following.
- $490 less 8,3% ($40.67) Paypal fee = $449.33
- $449.33 x ₱48.28 = ₱21,693 available in your bank
- $490 less $5 load fee = $485
- $485 x ₱50.71 (current exchange rate) = ₱24,594 available to withdraw
- ₱10,000 – 1st withdrawal (₱13,844 )
- ₱10,000 – 2nd withdrawal (₱3,904)
- ₱2,344 – 3rd withdrawal (0)
- ₱22,344 – total cash withdrawn + ₱2,250 (total withdrawal fees) = ₱24,594
- Payoneer still wins
Of course ,you can save that last ₱750 withdrawal fee if you spend the remaining ₱3,904 through POS.
The higher the amount, the bigger the difference. But for the amount more than $500, you should really withdraw through bank deposit in order to avoid these ridiculous fees. Paypal has been ripping-off people through ridiculous exchange rates and service charges, although Payoneer’s ATM withdrawal fee sucks as well.
Payoneer is faster and better option compared to Paypal because you have a Mastercard which you can use anywhere.
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