PalFish: Setting up Payoneer
In order to receive payments from PalFish, you will need to set up a Payoneer account. This is similar to other online payment systems such as PayPal, but allows you to receive international payments with lower transaction fees and a better exchange rate. Additionally, you have the flexibility to convert the money from US dollars into your own currency when the exchange rates are favourable.
Setting up Payoneer is relatively straightforward – simply visit their website. You will also need to upload some documents verifying your identity and address. Note that it may take a few days for Payoneer to verify your documents, as this must be done manually, hence why PalFish asks you to set up Payoneer at the initial application stage.
Bonus: benefit from a $25 bonus if you sign up for Payoneer via our link, paid once you have earnt your first $1000!
What currency am I paid in?
Although PalFish determines your salary in Chinese RMB, you are actually paid in USD – according to the exchange rate at the time of making the payment. Payoneer deducts a $3 fixed fee for payments from PalFish.
This also means that the amount you earn each month will vary depending on the exchange rate. The good news is that the Chinese RMB is generally increasing relative to the dollar, and so you may be positively surprised on payday! Indeed, the past few months I have been earning as much as 20% higher than the PalFish advertised salary due to the positive exchange rate variations. However, it is important to be aware that exchange rates do fluctuate and may drop in the future.
What if I am not American?
Unfortunately you will still be paid in USD, even if you are not located in the US. This does mean that you will need to convert your income from USD into your own currency.
Option 1: Withdraw from Payoneer to your bank account
You can do this easily within Payoneer, who charge up to 2% for withdrawing funds to your personal bank account. To maximise your earnings, wait until the exchange rates are particularly favourable before requesting the transfer.
Option 2: Use Transferwise to reduce bank fees
Alternatively, you can use transfer services such as Wise (formerly Transferwise), which have even lower fees than Payoneer and will also always use better exchange rates. You will need to set up a Wise Multi Currency / Borderless Account and set up two currency accounts – USD and your home currency.
Within Payoneer, withdraw funds to your Wise USD account (important: you must select the USD account to avoid paying fees!). Within your Wise account you can then exchange the money from USD to your home currency, before then spending it on your card or withdrawing to another bank account.