Payoneer Currency Conversion Fee: US Business Guide

For US entrepreneurs, freelancers, and small businesses, international payments are often unavoidable. Marketplaces, global clients and overseas suppliers all expect to be paid in their local currencies. Payoneer is one of the most popular services used to bridge that gap, but to use it effectively you need a clear grasp of the Payoneer currency conversion fee. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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How the Payoneer Currency Conversion Fee Works

The conversion fee applies whenever money moves between two different currencies. That could be inside your Payoneer account, for example, moving balances from euros to US dollars, or when withdrawing to a linked bank account in a different currency.

Unlike a flat transaction charge, the conversion fee is built into the rate you are offered at the time of transfer. Payoneer starts with the live mid-market exchange rate, sometimes called the interbank rate, and adds a markup. For most US customers this markup is about 0.5%, though the percentage can shift depending on the transaction type.¹

To illustrate: if the interbank rate shows 1 EUR = 1.10 USD, Payoneer might quote 1 EUR = 1.095 USD. That tiny difference represents the currency conversion fee.

Other Payoneer Fees US Users Should Watch

The conversion fee is only one piece of the puzzle. Payoneer fees also apply to different actions across the platform:

• Receiving payments through the Make a Payment network is free, but credit card and ACH (Automated Clearing House) transfers include a charge.¹
• Withdrawing money to a bank account in a currency different from its denomination is charged a fixed fee or 1% fee.¹
• Sending a payment request to a client carries up to a 3.99% fee if the client pays by credit card.¹

By combining these costs with the Payoneer currency conversion fee, you get a more accurate picture of your true expenses.

Why US Businesses Still Choose Payoneer

Despite these charges, Payoneer remains popular with American entrepreneurs. The service is designed for global commerce: you can accept payments from more than 190 countries and hold balances in multiple currencies within your Payoneer account.²

Marketplace integration is another major reason US users rely on Payoneer. Platforms like Amazon, Upwork and Airbnb connect directly, making it easy to handle payment requests and receive funds without friction.³

Comparing Payoneer to PayPal and Airwallex

Context matters when evaluating the Payoneer currency conversion fee. Competitors often take very different approaches.

• PayPal typically charges a conversion fee of 3% to 4.5% above the mid-market rate, which makes it far more expensive.⁴ On a $10,000 withdrawal, that could mean losing $300 to $450 compared with about $50 under Payoneer’s model.
• Airwallex positions itself closer to the interbank rate, often offering lower costs. However, its accessibility and marketplace integrations for US entrepreneurs are more limited than Payoneer’s.

Payoneer balances cost and usability. It may not always be the cheapest, but it offers a combination of reach, transparency, and integrations that others cannot match.

Wise Business: International Business Account

Strategies to Minimize Conversion Costs

US businesses cannot eliminate the Payoneer currency conversion fee, but they can manage it. A few approaches work well in practice:

• Withdraw in the same currency as your bank account to avoid unnecessary conversions.
• Open foreign currency accounts if you receive large payments in euros, pounds or yen.
• Consolidate smaller transactions into fewer, larger conversions to limit repeated fees.

Even modest adjustments to how you move money can protect margins and reduce your exposure to extra charges.

Final Thoughts

The Payoneer currency conversion fee is one of the most important aspects of using Payoneer for international business. It adds a small markup to the Payoneer exchange rate, but it is far lower than the charges imposed by some competitors, keeping the costs predictable.

FAQs

Can I Avoid Paying This Fee?

Not entirely. The best strategy is to withdraw in the same currency as your bank account or hold balances in multiple wallets.

Does Payoneer Offer Better Rates Than PayPal?

Yes. Payoneer’s conversion markup is much lower, making it more affordable for larger cross-border transactions.

Is Payoneer Always the Cheapest Option?

No. Providers such as Airwallex or Wise may sometimes undercut Payoneer’s fees, but Payoneer remains widely trusted in the US because of its integrations and accessibility.

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

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