How to withdraw money from PayPal through Payoneer?

I once wrote about the Moneybookers payment system and, after that, didn’t return to financial topics. Today, I’d like to talk about finances again. One of the most popular online payment systems is PayPal.

However, for several years now, this popular system has limited the possibilities for citizens of developing countries. This kind of discrimination seems puzzling, especially when even Indian citizens can fully use PayPal, while we still can’t withdraw funds through PayPal, only deposit them.

It’s frustrating because there are some promising stock photo agencies and other resources for freelancers where you can only work through PayPal, but it seems impossible to withdraw funds from PayPal. For example, Skrill allows all similar transactions, even though it’s based in the UK, where financial regulations are also relatively strict.

By the way, I already wrote about withdrawing money from Moneybookers, and as you can see from that article, there are no particular difficulties. With PayPal, many people use various intermediaries like exchange points, private individuals, etc.

But, it turns out there’s a relatively straightforward scheme that doesn’t require the use of third-party services with questionable reputations. This article will tell you about it.

The mentioned scheme for cashing out funds works as follows. Funds are withdrawn from PayPal to an account in the Payoneer service, from which they can be cashed out using a payment card by withdrawing from an ATM (terminal) or paying for purchases.

The commission losses are relatively low compared to the online intermediaries’ rates, which can charge up to 20% for PayPal withdrawals. I should note that I am not the first to describe this scheme. I have seen articles on this scheme in a more concise form on other sites. So, here’s the description:

Information about PayPal

Let’s start with what we know about PayPal. Some people know a lot, while others know nothing, but English-speaking business networkers — brooch designers on etsy.com, apartment owners on craigslist.com, vinyl sellers on eBay.com, or forex traders — all use “Palka” (a casual name for PayPal), so I’ll start my article with an overview of this payment system.

A PayPal account is linked to the user’s bank card or bank account. Until you provide your bank card details in your account, your account is considered unverified (not verified).

A user can receive and transfer funds from the balance in their PayPal account, and if there aren’t enough funds, PayPal will debit them from the account or card specified by the user.

Thus, all kinds of intermediaries are excluded when adding/withdrawing funds, and the funds are not stuck as idle and can be transferred to the user’s bank account at any time.

PayPal accounts are of three types:

• Personal Accounts;
• Premier Accounts;
• Business Accounts.

Personal Accounts

For individual use only (for direct transfers to friends, relatives, clients, etc.). This type of account does not support payments from credit cards and is intended for internal transfers within the PayPal system.

The turnover limit for these accounts is $500 per month. For unverified accounts opened from Ukraine or Russia, there’s a limit of $100 per month. Exceeding this may result in account suspension.

Additionally, as mentioned above, accounts opened from Ukraine or Russia do not have the capability to receive transfers in the PayPal system, regardless of the account type.

Premier Accounts

For users who need higher turnover than what Personal Account allows and require payment acceptance from credit cards or special PayPal tools (such as PayPal payment service integration with a website).

Business Accounts

Accounts for companies. These accounts are issued in the company’s name, under its logo, and with its details. Only companies with a TAX ID (taxpayer identification number) can open such accounts.

Registration in the PayPal system

Registration in PayPal is fairly straightforward:

1. On the first page of the registration form, you specify your country of residence and your preferred language for using the system.
2. Next, you need to choose one of the three types of accounts (see above).
3. On the next page, you must enter your name, accurate mailing address, email, and phone number.
4. Then, you will be asked to enter your credit or debit card details. However, you can skip this step for now. The requirement is that the issuing bank allows internet payments. By the way, a virtual VISA card, which is now available at almost any bank, is suitable for registration.
5. At the final stage of registration, you need to verify your email: PayPal will send you an activation code. You’ll need to not only follow the link but also confirm this action by entering the password you chose when registering on PayPal.

Your account will not be activated until you enter a special code on the site — a membership number. To do this, you need to top up your account by bank transfer or card payment.

$1.95 will be debited from your credit card as a membership fee, which will be returned to you later. A statement from PayPal with the $1.95 deduction will be sent to your mailing address. This statement will contain a special code that you’ll need to enter on your account to activate it.

After completing the full verification of your mailing address, email, and credit card, the $1.95 will be returned to you as a bonus, and you’ll become a full-fledged PayPal user with the ability to make purchases in the system.

Each PayPal account type has its own rates, which vary not only based on the type of account but also on the country of registration. For example, a business account from the U.S. has one set of commission fees, while the same account registered in Australia or Europe has a different rate).

The lowest fees apply to users in the U.S. The transaction fee is charged to the payment recipient.

PayPal Services

PayPal offers users the following services:

• Sending Money (Send Money). A PayPal user can transfer a specified amount from their personal account in the payment system. The recipient of the payment can be either another PayPal user or someone without a PayPal account.
• Requesting Payment (Money Request). Using this service, a user can send payment requests to their debtors. The message can be addressed to an individual or a group of debtors.
• Adding special payment tools on the user’s website (Web Tools). This service is only available for Premier and Business account holders.
• Auction Tools. The payment system offers two services. First, automatic payment requests (Automatic Payment Request). Second, auction winners can make payments directly on the website hosting the auction (Instant Purchase for Auctions).

It’s a bit dry, but that’s okay; now we know a lot, and knowledge is a powerful thing, so let’s create something extraordinary!

If you carefully read everything above, you likely noticed the point about linking a bank card or bank account to your profile, and perhaps you don’t have either yet, which might be why you’re reading this article.

So, it’s a bit early to register on PayPal; first, you need to find a bank card or account to link to your PayPal profile. And here, a helpful service called payoneer.com comes to our aid.

Payoneer Payment Service

Here’s what they say about themselves in their promo video:

Can Payoneer be trusted? Currently, more than a million people in over 200 countries use Payoneer MasterCard. Recently, Payoneer has started actively expanding into the Russian market.

The service’s main business is simple: payment recipients (freelancers across various niches) confidently order a prepaid MasterCard through a link provided by a Payoneer partner. Payoneer responds by producing a shiny, new card and sends it to the applicant via mail.

After receiving the card, the payment recipient must activate it on payoneer.com, after which the funds transferred by the payer (the partner company) to this card can be withdrawn at any MasterCard ATM or used for shopping in stores or online.

The card is embossed and issued for three years. It is a USD card. Access to card statements is available on the Payoneer website.

Payoneer’s support team is accessible via email, phone, and online chat in several languages, including Russian. So, if you’re here for the long haul and looking to grow big, it’s time to get your own plastic, and life will be brighter and more enjoyable.

I’ll outline how to do it here, because I’ve already said “A” so let’s not forget “B” and all the remaining letters in the word – payoneer.com. Recently, I had a chance to go through the registration process at Payoneer.

Registering with Payoneer

Now let’s get into the details of the registration process. There’s an option to register in Russian, but that’s for beginners, so I went with the default English location.

So, on the system’s website, go to the My Account tab:

I click on Sign Up Now, which takes me to a page where my gaze is immediately drawn to the top green rectangle labeled Start Here – starting without risk.

This takes me to a simple form to enter my personal information; we fill it out, double-checking every detail to avoid any typos, so Ivanov doesn’t turn into Ibanov, and so on. After this, we move to – Step 2

Predictably, the next steps involve email verification, entering a password, and setting a secret question for account recovery. After that, we proceed to – Step 3

Here’s an interesting part, you need to enter your National ID. What is it, and where to get it? Here, you simply need to provide information from an additional document (like a driver’s license, social security number, etc.).

Also, don’t forget to specify your country and check all boxes below to confirm you agree, and then click Finish.

If you followed these steps as I showed, then wait for an email instructing you to send a scan of the document with the National ID you provided during registration.

Here is a conditional translation of this letter:

Dear Ivanov,
The Payoneer Account Approval Department requests a copy of a valid official ID document so that we can process your card application.

Acceptable forms of ID include a driver’s license, passport, national ID card, and military ID.

Please ensure that your ID matches the information provided on your Payoneer card application and that the document is clear, showing your name and date of birth clearly.

Poorly readable documents may result in further delays, so please enlarge and clarify copies when scanning to ensure a clear image.

You can scan your ID (JPEG files are preferred) and upload it directly to your account for us to review using the link below:

Add link

Alternatively, if you prefer, you can attach the file in reply to this email. Please note that documents uploaded using the above link are reviewed faster than those sent via email.

Need help? Please reply to this message, contact us using the Payoneer contact form, or chat live with us Sunday through Friday, from 9:00 AM – 6:00 PM (EST).

Here is a screenshot of the letter translated above, with a link to click for continuing registration in Payoneer:

Redirecting to the page for uploading personal images with a National ID

Now we wait patiently for manual approval, which may take from 1 to 5 days (depending on the clarity of the National ID scan you uploaded).

Upon approval, you’ll receive an email notification stating that your application was approved and that your card has been sent:

Dear Hicham,

Congratulations!

Your Payoneer Prepaid Debit MasterCard ® order has been approved!

The estimated arrival date for your card is July 10, 2012.

There are 3 steps to complete:

Step 1: Registration » Complete!

Step 2: Approval » Complete!

Step 3: Shipping » You are here!
The estimated arrival date for your card is July 10, 2012.

Now, everything depends on the speed of the postal services that will handle the delivery of this long-awaited card. Delivery times vary (for me, it took about two and a half weeks).

And here is the fruit of our efforts: an envelope with the card and an A4-sized price list with all service fees (terms and conditions):

Now we need a little more patience to activate the card. To do this, log in to your Payoneer account and click on Services => US Payment Service:

Click on the green “Activate” button. Things may change occasionally, but usually, you need to enter the XXXX security code (PIN) from the back of the card.

You’ll then see a message with your personal account details in the Payoneer payment system (apologies for the quality of some images):

That’s it; now this card can be loaded and funds can be withdrawn via ATMs with this card. All actions mentioned above, including card delivery, are free of charge.

However, when I first loaded the card, I was charged an activation fee, typically $10. This is the only one-time fee; after that, you’ll only pay a monthly service fee, which generally does not exceed $3.

These fees depend on the Payoneer partner through which you received the card. Some partners waive the activation fee, while others have monthly fees as low as $1. When choosing a partner, check their fees.

Here is a list of those who officially support and issue Payoneer cards (to get a card from such a partner, you need to earn money there first, and once you reach the minimum withdrawal amount, you will be offered the option to receive a card as one of the payment methods).

Photobanks:
veer.com
istockphoto.com
dreamstime.com
Banner (media) ads:
mediawhiz.com
mediashakers.com
dsnrmg.com
smowtion.com
oridian.ybrantnetworks.com
Freelance exchanges:
www.elance.com
www.rentacoder.com
www.odesk.com
www.vlancers.com
www.limeexchange.com
www.guru.com
www.utest.com
www.freelancer.com/
Payment gateways:
plimus.com
2co.com
tripleclicks.com
fastspring.com
avangate.com
epese.com

Affiliate programs:
buy.at
convertclub.com
roirocket.com
conduit.com
ethosworld.com
convert2media.com
copeac.com
MLM:
freedomrocks.com
kyani.net
visalus.com
xsura.com
wellnesspro.com
alivemax.com
worldventures.com
textlinksads.com
infolinks.com
reviewme.com
Forex:
avafx.com
etoro.com
SMS billing:
smscoin.com
Technical support (outsourcing):
ixya.com

Withdrawing funds to a Payoneer card

Withdrawing funds to a Payoneer card is quite fast. There is a regular load option, which may even be free but takes 1-3 days, or an instant load, which costs $3-5, making funds immediately available on the card.

Cash withdrawal from a Payoneer card via an ATM costs $2.15 + up to 3% of the amount in case of currency conversion. Practically, for withdrawals above $500, the fee is relatively low.

It’s also possible to load Payoneer via Webmoney. To do this, you need to use a third-party service, such as www.epese.com. Simply link the card to your account in Epese, submit a ticket to support, specifying the card number and the issuing partner.

After that, the card will be fully linked to your account, allowing you to withdraw any funds received into your account via Webmoney or another payment system.

The deposit fee for cards is 1%, but no less than $5. So, again, it’s advisable to transfer amounts of $500 or more. Although WebMoney also issues Payoneer cards, as stated on their website – cards.wmtransfer.com/ru:

Take note of the “tariffs” section, where you’ll find some fine print unique to WebMoney, meaning that for an account with a BL below 8, obtaining a card won’t be possible:

You can read further details in the WebMoney help section on their website. However, potential issues may arise with linking such a card to PayPal, so if the goal isn’t withdrawing money from PayPal but simply cashing out in the CIS countries, it might be suitable. But I wouldn’t rely on it completely, so I get Payoneer cards directly through their official site.

We can easily track all transactions on the Payoneer card in our account. If you have questions about card maintenance or other nuances, you can find solutions on the forum page – community.payoneer.com/forum/ – where there’s a dedicated section in Russian:

So, we’ve reactivated the card and are now 80 percent closer to our goal – cashing out money from PayPal, but let’s not rush. We should wait a few days, ideally 3-5, for the card to settle.

Next, we need to complete the process by heading to PayPal to link the newly issued card. In your account profile, choose the “Add/Edit Bank Account” section:

If the option to add an account isn’t available in your account, take note of the advice provided by a commenter on this article:

“Nothing has been closed off. Everything works fine. The only catch, unrelated to Payoneer, is PayPal’s feature where you need to call support when adding a bank.

Also, when verifying an email, you’ll need to call support. Finally, when adding a card, support has to confirm everything manually.”

Enter the card details carefully, select United States as the country. Find information about the bank name and required account numbers through this link in your account: https://myaccount.payoneer.com/MainPage/VirtualUsAccount.aspx.

Remember, it’s important to double-check all fields since there’s no room for error. Review everything seven times:

Only after a thorough check, click Continue. After that, we await verification – GET VERIFIED through two micro-deposits into the Payoneer account.

Now, check your virtual Payoneer bank account, where you’ll see two mini-deposits (e.g., 0.12 and 0.02 USD):

Return to your PayPal account and enter the micro-deposit amounts as prompted:

Finally, our journey comes to an end – PayPal has been verified. Now the option to add funds to the card (ADD FUNDS) is available:

With a little patience and careful navigation, we’ve transformed a regular card into a Payoneer supercard with the ability to transfer funds anywhere in the United States. Congratulations, your PayPal account is now functional.

By the way, your Payoneer plastic card will arrive at the address provided during registration, so it’s best to give an address where you can reliably receive it. This address will also be used for some online transactions with the card.

If you need to change the address later, you can do so in your account or by contacting Payoneer support. There are actually two address fields – one for the registered address and another for the shipping address. The shipping address is where the card will be sent, and the registered address (billing address) will be used for billing.

To speed up delivery, write the shipping address in Latin characters as we do, like “Ulitsa Bolshaya Dom 5 Kvartira 88” so our postal workers, who ultimately determine the delivery speed, understand it better.

Use this opportunity carefully while it’s still available, but things may change.

This article provides detailed instructions that may be helpful for those seeking low-cost ways to withdraw money from PayPal. I haven’t personally tried this method, but I may give it a try soon to cash out some funds through PayPal.

P.S. Please note, this article on the PayPal and Payoneer connection was written in 2013, and things have changed significantly over the years, so it may no longer be relevant.

This article is also available for reading in the following categories: About Microstocks, Finance