I've been using Payoneer for international transactions, but I've noticed that the exchange rates seem different from the market rates. How can I better understand the fees involved?

When conducting international transactions with Payoneer, it is critical to understand the currency conversion fees. Payoneer uses a variety of fee structures:
• Currency Conversion Fee: This is a fixed fee that is applied to each currency conversion and ranges from 0.5% to 3.5%. The exact fee depends on the currencies involved and can be found on the Payoneer website or in transaction details.
Payoneer makes use of wholesale market rates, which are slightly lower than retail rates. These rates reflect the lower costs associated with larger, institutional currency trades.
• Spread: Payoneer includes a small spread in its rates to represent the difference between a currency's buy and sell rates. Payoneer can generate revenue on each transaction thanks to this spread.

Users can consider the following recommendations to reduce fees.:

• Select the Appropriate Conversion Option: Payoneer offers a variety of conversion options, including "Market Rate" and "Fixed Rate." Choosing "Market Rate" usually results in lower fees, though the rate may fluctuate during the transaction.

• Convert Larger Sums in Fewer Transactions: Converting larger sums in fewer transactions can help reduce the overall impact of fixed fees.

• Monitor Market Rates: Being aware of market rates allows users to choose the best time to convert currencies.

• Investigate Alternatives: While Payoneer is a convenient option, other options such as Wise or WorldRemit may offer more competitive rates for specific currencies or transfer amounts.

Fee information is available through transaction details in your Payoneer account, the Payoneer website's published fee schedule, or by contacting Payoneer's customer support for specific inquiries.

If you appreciate these tips, feel free to share your thoughts in the comments.