Is Payoneer safe? Guide on how it works and security measures

If you’re a small business or freelancer making regular international payments, knowing your money is safe and secure is a pretty big deal. If you’ve just started using Payoneer or are thinking about opening an account, you're probably eager to find out how secure it really is.

So, is Payoneer legit? This blog will look at how the platform works and the security measures it deploys to protect funds and user details.

How does Payoneer work?

Payoneer provides multi-currency accounts for SMBs, freelancers, and other users to make international payments. A few services include¹:

• Receiving payments with local currency accounts in NZD, USD, EUR, and other major currencies
• Sending payouts to contractors or suppliers in 190+ countries
• Withdrawing funds to a local bank or a Payoneer card
• Creating a business account to accept payments from global clients and marketplaces
• Connecting to platforms like Amazon and Upwork to receive marketplace payouts

Payoneer has three main service hubs tailored for specific customers: freelancers, businesses, and marketplaces (or sellers and service providers). The tools provided all support these target customers’ efforts to manage cross-border payments and grow globally.

Is Payoneer safe?

With 5+ million customers globally, Payoneer is a popular payment platform for small businesses and freelancers. It’s a regulated entity licensed by ASIC in Australia for non-cash payments, and it follows strict security protocols to keep sensitive data and funds safe².

Payoneer models through monitoring programs to combat the growing risk of fraud and identity theft. A capable team of security specialists supports these efforts and is on hand to quickly resolve any cybersecurity problems².

How does Payoneer protect your money?

Payoneer safeguards transactions on the platform by using multiple, high-level security measures³.

Two-factor authentication

Two-step verification is required to access accounts on Payoneer. This reduces the risk of someone logging in with just a stolen password. Mobile app authentication is now also available for faster and more convenient security checks. You can turn on 2FA, which is strongly recommended, in account settings. You’ll receive a verification code to set everything up.

CAPTCHA and account takeover prevention

Bots are a growing menace to online websites. Payoneer deploys CAPTCHA tech to prevent an army of bots from brute forcing their way through to a user’s account. An additional security layer of web application firewalls and bot-locating software mitigates the threats of automated attacks. Only genuine users can interact with Payoneer’s login and transaction systems.

PCI compliance

Payoneer uses the highest level of Payment Card Industry Data Security Standard (PCI DSS)⁴. This means that all card data and personal information are protected under Level 1 controls, with encryption at both transit and rest. Users have peace of mind that every transaction is protected.

RSA adaptive authentication

Another risk-based security tool, RSA adaptive authentication, constantly monitors multiple risk factors, such as transaction size and a person’s IP address, to flag anything untoward. When suspicious activity is detected, the system then requests additional identification through security questions and 2FA.

Regulatory compliance

Payoneer complies with regulations in countries around the world to keep money safe. This includes adherence to⁵:

• MLD4 (Fourth EU Anti-Money Laundering Directive)
• AML (Anti-Money Laundering)
• OFAC (Office of Foreign Asset Control) regulations
• CTF (Counter Terrorism Funding)
• CIP (Customer Identification Program)

It also holds licences and approvals in Australia (ASIC), the US, Europe, and other regions to operate legally as a financial services provider.

Security teams

Specialist teams work hard to track new threats while keeping the company on its toes, ready to meet new regulations. These teams update internal protocols and carry out risk assessments to identify weak points and maintain security.

Common risks involved with international payment platforms

Like other online financial platforms, Payoneer isn’t completely free of risks. Most of these are common to most digital payment providers, but it’s important to take note of them so you are fully aware of what’s involved.

• Phishing emails - Scammers may send emails that appear to be genuine customer support outreach, asking for your login credentials or personal information. These can look convincing, and even use proper branding logos.
• Fake payment requests - You might receive fake emails with fraudulent invoices or payment requests.
• Account takeover attempts - Hackers might try to access your account by using weak passwords or leaked credentials from other platforms.
• Impersonation scams - Some scammers might try to pass off as customer service agents via phone or social media to get you to share private details.

In addition to more blatant scams and hacks, there are a few risks inherent to digital payment platforms. These include:

• Account freezes - Your account could be frozen temporarily during security reviews and compliance checks. This isn’t unique to Payoneer. It’s standard practice when suspicious activity is flagged.
• Withdrawal limitations - Like many other providers, Payoneer has withdrawal limits, but they are generous. You can make up to 30 withdrawals every day and take out up to $5,000⁶.

Explore Wise Business: Secure and cost-effective solution for global transactions

Wise Business is another international payment solution that prioritizes security and compliance, ensuring that your transactions are safe and secure. Trusted by 13 million people and counting, the platform is regulated by financial authorities across different countries and employs advanced security measures to protect your data and funds.

With features like two-factor authentication and real-time transaction monitoring, Wise Business provides peace of mind while you focus on growing your business internationally. Whether you're paying suppliers, receiving payments from clients, or managing payroll, Wise Business offers a reliable and efficient solution for your global financial needs.

Wise Business helps streamline overseas business payments without foreign transaction fees, saving up to 3x compared to other providers.

• Free to register — Send money to 140+ currencies with no hidden exchange rate markups
• Make up to 1,000 transfers at once with the Wise batch payments feature
• Fast, low-cost payouts to customers, freelancers, employees, investors, and suppliers globally
• Automate invoice payments, recurring transfers, and international payroll
• Fast and fully secure payments through Wise, even for large amounts

Tired of hidden fees and complex processes when making overseas payments?

Start sending with a Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

Sources:

1. Payoneer - Home page
2. Payoneer - Navigating global regulatory maze
3. Payoneer - Security center
4. Payoneer safety and security
5. Payoneer safety and security
6. Payoneer - Withdraw funds