Payment processing is an essential aspect of any business, be it online or brick-and-mortar. The increasing popularity of digital transactions has led to the growth of payment processing services, with Payoneer and Square being two of the most prominent names in the industry.
In this article, we will take an in-depth look at Payoneer and Square, comparing their features, fees, pros, and cons, to help you make an informed decision on which service is best suited for your business needs.
What is Payoneer?
Payoneer is a payment processing service that provides businesses with a secure and convenient way to receive and make payments globally. It operates in over 200 countries, allowing businesses to receive payments from clients located in different parts of the world.
Payoneer has a user-friendly interface, and its services are available in multiple languages, making it a convenient option for businesses that operate globally.
What is Square?
Square is a popular payment processing service that provides businesses with a fast and easy way to accept payments from customers. It offers a range of tools and services, including payment processing, invoicing, and point-of-sale solutions.
Square is particularly popular among small businesses and entrepreneurs, as it offers low transaction fees and a user-friendly interface.
Payoneer vs. Square: Features
Let’s take a closer look at the features offered by Payoneer and Square.
Payoneer Features
- Global Payment Processing: Payoneer operates in over 200 countries, allowing businesses to receive payments from clients located in different parts of the world.
- Secure Payments: Payoneer uses encryption and two-factor authentication to keep your transactions secure.
- Multi-currency Support: Payoneer allows businesses to receive and make payments in multiple currencies.
- Virtual Cards: Payoneer provides virtual MasterCards that businesses can use to make online purchases.
- Easy Integration: Payoneer can be easily integrated with various e-commerce platforms, making it a convenient option for online businesses.
Square Features
- Point-of-Sale Solutions: Square offers a range of point-of-sale solutions, including a free point-of-sale app and hardware options.
- Invoicing: Square allows businesses to create and send invoices to customers.
- Quick Set-Up: Square is easy to set up, and businesses can start accepting payments within minutes.
- Affordable Fees: Square charges low transaction fees, making it a cost-effective option for small businesses.
- Customer Management: Square provides businesses with a customer directory and sales reports, allowing them to keep track of their sales and customers.
Payoneer vs. Square: Fees
One of the most important factors to consider when choosing a payment processing service is the fees charged. Let’s take a look at the fees charged by Payoneer and Square.
Payoneer Fees
Payoneer charges a $29.95 annual fee, in addition to a fee of 1% to 2% on transactions. Payoneer also charges a fee of $3.99 to receive a wire transfer, and a fee of $15 to receive a check.
Square Fees
Square charges a transaction fee of 2.6% + 10 cents per transaction. Square also charges a monthly fee of $50 for its point-of-sale hardware.
Payoneer vs. Square: Pros and Cons
Before making a decision on which payment processing service to choose, it is important to consider the pros and cons of each.
Payoneer Pros
- Global Reach: Payoneer operates in over 200 countries, allowing businesses to receive payments from clients located in different parts of the world.
- Secure Payments: Payoneer uses encryption and two-factor authentication to keep your transactions secure.
- Multi-currency Support: Payoneer allows businesses to receive and make payments in multiple currencies.
- Virtual Cards: Payoneer provides virtual MasterCards that businesses can use to make online purchases.
Payoneer Cons
- Annual Fee: Payoneer charges an annual fee of $29.95.
- High Transaction Fees: Payoneer charges a fee of 1% to 2% on transactions, which can be higher than other payment processing services.
- Limited Point-of-Sale Solutions: Payoneer does not offer point-of-sale solutions, making it less suitable for brick-and-mortar businesses.
Square Pros
- Point-of-Sale Solutions: Square offers a range of point-of-sale solutions, including a free point-of-sale app and hardware options.
- Quick Set-Up: Square is easy to set up, and businesses can start accepting payments within minutes.
- Affordable Fees: Square charges low transaction fees, making it a cost-effective option for small businesses.
- Customer Management: Square provides businesses with a customer directory and sales reports, allowing them to keep track of their sales and customers.
Square Cons
- Limited Global Reach: Square is currently only available in the United States, Canada, Japan, and the United Kingdom.
- No Virtual Cards: Square does not offer virtual cards, making it less convenient for online businesses.
- Monthly Fee: Square charges a monthly fee of $50 for its point-of-sale hardware.
Conclusion
In conclusion, both Payoneer and Square have their strengths and weaknesses. Payoneer is a good option for businesses that operate globally, as it operates in over 200 countries and offers multi-currency support. Square, on the other hand, is a good option for small businesses and entrepreneurs, as it offers low transaction fees and a range of point-of-sale solutions.
Ultimately, the best payment processing service for your business will depend on your specific needs and requirements. Consider the features, fees, pros, and cons discussed in this article to make an informed decision on which service is best suited for your business.
FAQs
- What is the annual fee charged by Payoneer?
The annual fee charged by Payoneer is $29.95.
- Does Square offer virtual cards?
No, Square does not offer virtual cards.
- What are the transaction fees charged by Square?
The transaction fees charged by Square are 2.6% + 10 cents per transaction.
- Can businesses receive payments from clients located in different parts of the world with Payoneer?
Yes, businesses can receive payments from clients located in different parts of the world with Payoneer, as it operates in over 200 countries.
