Amazon FX rates, or Payoneers?

FittersGuy

Hi everyone,

I'm a self published author and I'm currently racking my brain trying to figure out if Payoneer is worthwhile to switch to. Being based in Canada, I've been at the mercy of Amazon's FX rates, which seem to be about 3.3% on top of the market rate to go from USD to CAD.

However, I'm finding it very difficult to navigate exactly how Payoneer works and what I'm going to be charged.

Here's what I want to do if it makes sense:
1. Have Amazon pay USD into my Payoneer USD account.
2. Withdraw that money to my Canadian bank account in CAD.

What fees and percentages am I going to be charged? Is it worth it? Let's use an example of $1000USD

Nissim

Hi,

Thanks for posting, and for considering Payoneer as a global payment solution!

To receive payments from US companies, such as Amazon, we provide account holders with Global Collection Accounts. We currently support USD and EUR collection accounts.

It's free to sign up for Payoneer, and the account has a $29.95 annual charge. When you receive a payment using the USD collection account service, there is a 1% charge. For the EUR collection account, there is no charge.

When you withdraw to your bank account in Canada, we do not charge any flat fee. Conversion from USD or EUR is done using rates of up to 2% above the market rate.

The benefit of Payoneer is that you can receiving earnings from both USD and EUR Amazon stores, without having to convert (meaning Amazon can send your funds in USD and EUR). Our conversion rates, especially to CAD, are among the best available on the market. In addition, when you withdraw to your bank in Canada, the transfer is made via local bank transfer. Payoneer sends funds from a local bank in Canada, in CAD - this is extremely fast and also cost effective (you do not need to pay any international landing fees).

Let me know if you have any questions about Payoneer.

FittersGuy

Thanks for the speedy reply Nissam!

Let me make sure I understand the difference.

Currently amazon charges about 3 percent to convert into CAD. Payoneer would charge 1 percent, then 2 percent? So then I'm saving nothing on USD payments (actually losing money because of the yearly fee).

And, you guys only support EUR, not GBP? So that would mean it's also not worth it since I personally don't make much in EUR.

That would mean the only benefit is if I wanted to spend money in US. That would save me money.

Am I understanding this correctly?

Nissim

We currently support only USD and EUR collection accounts, but plan to add GBP in the near future as well.

We also have a tiered pricing structure, so if you plan to have high earnings, you would eventually qualify to pay no 1% on incoming payments (it's currently charged only for USD, we don't charge when receiving EUR payments).

If you send me an e-mail with your expected payment volume I can let you know if you qualify for the reduced pricing: nissimal [at] payoneer [dot] com

itm

Is it possible for Payoneer to transfer USD to my USD Canadian Bank Account (Bank of Montreal)?

(e.g) Amazon pays me in USD --> Payoneer USD --> Canadian Bank of Montreal USD account.

Basically i want NO CONVERSION to Canadian currency throughout this whole process.

If this is possible, I think I'll sign up!! Also:

1) How long is this above 3 step process until I get the money?

2) What are the fees involved in the above 3 steps? Thanks!

Nissim

We currently do not support withdrawing in USD for countries in which we support a local currency. Note that for USD withdrawals a fee of 2% would apply, so unless you specifically need to maintain funds in USD the local currency option is significantly lower cost.

itm

Just to be sure, can you please confirm whether this is possible:

Amazon pays me in USD --> Payoneer USD --> Canadian Bank of Montreal USD account.

Yes or No? Thanks.

Nissim

Unfortunately, no, we do not currently support withdrawing to a Canadian bank in USD.

Niko

Can I receive payments from amazon.ca, amazon.de and amazon.co.uk, using US Payment servise?

Nissim

Yes, you can receive payments from any Amazon marketplace that supports withdrawal to a US bank. In addition, for marketplaces that required an EU bank account, you can sign up for our EUR Payment Service: http://blog.payoneer.com/do-you-need-to-receive-payments-from-european-companies/