Payment systems and our optimal choice
Andrey Prudko, founder of the online platform for freelance linguists (translators, tutors, copywriters, guides) shared his experience of choosing the right payment system for his startup.
Since Polyglot is international and brings together language professionals from around the world, respectively, for a startup we needed to choose a universal option that would fit in all parameters, including availability in most countries of the world and acceptable commissions. Earlier we wrote about the registration of a legal entity abroad , now we are talking about options for making payments.
Initially, we considered several payment systems: Mangopay , ePayService , TransferWise , Scrill , PayPal and Payoneer . But as it often happens, there is no one ideal option, everything has its own advantages and disadvantages.
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Mangopay refused to cooperate with us at all, justifying it by the fact that they do not work with Ukrainian platforms.
ePayService takes a very large commission - about $ 30 per transaction. In addition, their representative worked as a true sales manager on the principle of “in the morning money - in the evening chairs”, that is, first he invited to cooperate, and afterwards find out what their commissions were.
TransferWise and Scrill work directly with bank accounts, which does not allow us to implement our special option “Secure Transaction”, designed to protect the customer's money from fraudulent activities, and the freelancer to guarantee payment for the work done. It means the reservation of funds on the account until the customer confirms that the order has been completed by the freelancer or until the specified deadline for the transaction without any claims, then the payment is made automatically. And these two payment systems send money directly to a customer’s bank account within one to seven days, but we don’t want to deprive our users of the opportunity to choose the ways to withdraw money.
Scrill , in addition, additionally charges a monthly fee for using their service from corporate accounts in the amount of the sum of the final addition of those transactions of the previous month that were less than 10 EUR, as well as an additional fee for conversion into different currencies in the amount from 3.99% to 4.99%.
Comparing the possibilities of different payment systems and their commissions, considering the options for Polyglot, we still settled on the last two - PayPal and Payoneer . These systems have their own separate accounts on which you can store money and withdraw them at any convenient time. Of course, the commission in them is not the lowest, but quite acceptable.
Transaction Fees:
• PayPal is 3.4% + 0.3 USD,
• Payoneer - only 3 USD.
But here it was not without pitfalls.
In Payoneer , for corporate accounts, if the amount of payments made within a month is less than 5000 USD, the additional monthly payment will be 90 USD.
And with PayPal, the situation is even more complicated: in Ukraine there is no possibility at all to withdraw money from a payment system account to a bank one. Although in Russia in national currency this can be done without problems and even free of charge:
and in Ukraine, Payoneer will help you to withdraw money to a bank account:
But there is good news . Most recently, the National Bank of Ukraine adopted a number of resolutions that will finally lift restrictions on withdrawing money from a PayPal account in Ukraine. In addition, the Ministry of Economics and the NBU invited the payment system to officially cooperate. Therefore, following the news, we decided, so to speak, to play in anticipation of favorable events.
The list of documents required for creating a corporate account with PayPal and Payoneer is almost identical:
It is worth saying here that when choosing a payment system for receiving payments from users there are many options. For example, such systems as: LiqPay , Yandex.Money , Webmoney , Wallet One , Qiwi and others. You can use ready-made solutions, such as Robokassa or Interkassa , Monexy , iPay and others, but they have more commission than working directly with electronic money. If you work in the CIS, the availability of payment acceptance through LiqPay , Yandex.Money , Webmoney will satisfy almost all of your users.
But when accepting payments from other countries, as well as sending money to users, difficulties already arise. Abroad, few people know what Webmoney or Yandex.Money is . And the problem of sending money to other users is associated both with the financial side and often with legislative aspects.
In conclusion, I hope that our experience in creating an international service for the language sector freelancers Polyglot will help domestic startups to decide on such a difficult choice of an electronic payment system for online business.
Since Polyglot is international and brings together language professionals from around the world, respectively, for a startup we needed to choose a universal option that would fit in all parameters, including availability in most countries of the world and acceptable commissions. Earlier we wrote about the registration of a legal entity abroad , now we are talking about options for making payments.
Initially, we considered several payment systems: Mangopay , ePayService , TransferWise , Scrill , PayPal and Payoneer . But as it often happens, there is no one ideal option, everything has its own advantages and disadvantages.
')
Mangopay refused to cooperate with us at all, justifying it by the fact that they do not work with Ukrainian platforms. ePayService takes a very large commission - about $ 30 per transaction. In addition, their representative worked as a true sales manager on the principle of “in the morning money - in the evening chairs”, that is, first he invited to cooperate, and afterwards find out what their commissions were. TransferWise and Scrill work directly with bank accounts, which does not allow us to implement our special option “Secure Transaction”, designed to protect the customer's money from fraudulent activities, and the freelancer to guarantee payment for the work done. It means the reservation of funds on the account until the customer confirms that the order has been completed by the freelancer or until the specified deadline for the transaction without any claims, then the payment is made automatically. And these two payment systems send money directly to a customer’s bank account within one to seven days, but we don’t want to deprive our users of the opportunity to choose the ways to withdraw money. Scrill , in addition, additionally charges a monthly fee for using their service from corporate accounts in the amount of the sum of the final addition of those transactions of the previous month that were less than 10 EUR, as well as an additional fee for conversion into different currencies in the amount from 3.99% to 4.99%.Comparing the possibilities of different payment systems and their commissions, considering the options for Polyglot, we still settled on the last two - PayPal and Payoneer . These systems have their own separate accounts on which you can store money and withdraw them at any convenient time. Of course, the commission in them is not the lowest, but quite acceptable.
Transaction Fees:
• PayPal is 3.4% + 0.3 USD,
• Payoneer - only 3 USD.
But here it was not without pitfalls.
In Payoneer , for corporate accounts, if the amount of payments made within a month is less than 5000 USD, the additional monthly payment will be 90 USD. And with PayPal, the situation is even more complicated: in Ukraine there is no possibility at all to withdraw money from a payment system account to a bank one. Although in Russia in national currency this can be done without problems and even free of charge:and in Ukraine, Payoneer will help you to withdraw money to a bank account:
But there is good news . Most recently, the National Bank of Ukraine adopted a number of resolutions that will finally lift restrictions on withdrawing money from a PayPal account in Ukraine. In addition, the Ministry of Economics and the NBU invited the payment system to officially cooperate. Therefore, following the news, we decided, so to speak, to play in anticipation of favorable events.
The list of documents required for creating a corporate account with PayPal and Payoneer is almost identical:
It is worth saying here that when choosing a payment system for receiving payments from users there are many options. For example, such systems as: LiqPay , Yandex.Money , Webmoney , Wallet One , Qiwi and others. You can use ready-made solutions, such as Robokassa or Interkassa , Monexy , iPay and others, but they have more commission than working directly with electronic money. If you work in the CIS, the availability of payment acceptance through LiqPay , Yandex.Money , Webmoney will satisfy almost all of your users.
But when accepting payments from other countries, as well as sending money to users, difficulties already arise. Abroad, few people know what Webmoney or Yandex.Money is . And the problem of sending money to other users is associated both with the financial side and often with legislative aspects.
In conclusion, I hope that our experience in creating an international service for the language sector freelancers Polyglot will help domestic startups to decide on such a difficult choice of an electronic payment system for online business.
Source: https://habr.com/ru/post/295212/
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