Back in 2005, when I was living in the UK, I noticed quite a few companies advertising their “Prepaid Credit Cards” both online and print. The idea is for people with bad credit to use the card to “re-build” their credit status, as well as a way to manage their spending. There’s no credit checks, no bank account needed, you just need a valid mailing address and be over 18 years of age. It also helps people with online purchases as well as making reservations and bookings, where a credit card is needed. You only spend what’s available on the card … so you’re never in debt and there’s no interest charges. You just top-up or reload the card with funds where ever you need it.
I had one of these prepaid cards before and believe me … it was mighty useful. However, it’s now 2013 and I’m now living in Hong Kong, but since the card was issue in the UK, I was unable to top-up or reload the card anymore. I decided to search locally for a “Prepaid Credit Card” from a local bank in Hong Kong. To my surprise, no banks or company in Hong Kong offer such a service! Could you believe that! So what are the alternatives?
Well, after some research online … I found several Online Payment companies that offer Prepaid Credit Cards that allow you to top-up or reload anywhere in the world. The two that stood out are Neteller and Payoneer.
Perfect, now I can get a prepaid card that I can use without having to worry where it was issued. I can also top-up or reload the card via local bank transfer or a USPS partner such as Google (Adsense), Amazon (affiliate program) or Paypal.
We’ll be comparing two Online Payment companies that offer Prepaid MasterCards to access your funds … Neteller and Payoneer. Both are well established payment portals that offer secure online payments and global money transfer. Once you have registered and setup your accounts, you’ll be able to send and received money, fast and free!
Well, I wouldn’t say it’s 100% free. It’s free to setup the account, but there are some fees attached (see below). The good thing is … applying for their Prepaid Mastercard is FREE. There’s no credit checks, no bank account needed, and you can apply outside the US in countries such as Hong Kong or even the Russian Federation.
Neteller
Taken from their website … www.neteller.com
| “Founded in 1999, Optimal Payments Limited provides businesses and individuals with an online alternative to traditional payment methods.
We help customers get their money where it needs to go securely and privately, and give businesses an option for accepting payments and making payouts in markets where traditional methods may not work. Millions of customers around the world have used their NETELLER Account to pay and get paid on thousands of sites and to send money to individuals around the world. And with Net+ Prepaid MasterCards® linked directly to the funds in their eWallet, they also enjoy instant access to their cash at millions of MasterCard® point-of-sale, ATM and online locations.” |
Payoneer
Taken from their website … www.payoneer.com
| “When your people are spread across the globe, paying them can feel like a logistical nightmare. At Payoneer we make paying your global community easy – because we take care of it all for you.
Right now, our partners are using Payoneer to pay their selling agents, affiliates and service providers in 210 countries. They’re using us to ensure their people have the money they need whilst working overseas. And they’re using Payoneer to get money to students, temporary foreign workers and others who don’t have bank accounts, or are unable to access them. Operational since 2005, profitable, and well-funded we deliver the global payments your people rely on so you, and they, can concentrate on business.” |
Comparison Table
| Neteller |
Payoneer |
|
| Established | 1999 | 2005 |
| eWallet | Yes | Yes |
| Prepaid Card | Net+ Prepaid Mastercard | Payoneer Debit MasterCard |
| ATM Worldwide | Yes | Yes |
| Default Currency | GBP, USD, EUR, CAD, SEK, DKK, AUD and JPY | US Dollars |
| Receiving Money ** | Bank transfers, cheques, bankwires, credit cards | US Payment System, Direct loads (credit card) |
| Sending Money | Yes (email, bank transfer) | Yes (email invitation) Payoneer-to-Payoneer |
| Money Out | Yes (bank, cheques, merchant site) | No |
| Paypal compatible | No | Yes * |
| Total Limit in Credit | N/A | $10,000 |
| Daily withdrawl Limit | $4,000 per day $1,000 at ATM $3,000 for Online/POS |
$5,000 per day $2,500 at ATM $2,500 for Online/POS |
| VIP upgrade | Yes (higher limits, lower fees) | No |
| Forum support | No | Yes |
| Countries Available | Country List | Almost ALL (except for Iran, Syria and North Korea) |
* with some limitation (depending on country), ** charges may apply
Fees Comparison
| Neteller |
Payoneer |
|
| ATM withdrawl | Upto $6 | $3.15 per transaction |
| Annual Card Maintenance Fee | N/A | $29.95 |
| Card Replacement | $20 | $12.95 |
| Foreign Exchange (at ATM) |
2.95% FREE for GBP, USD, EUR, CAD, SEK, DKK, AUD and JPY |
3% |
| Purchases | FREE for GBP, USD, EUR, CAD, SEK, DKK, AUD and JPY 2.95% for all other currencies |
Free (in USD) 3% for all other currencies |
| Reload Fee | Varies | 1% |
| Bank/Transfer Fees | Full Fees List | Fees List |
Final Thoughts
There are pros and cons for both prepaid cards … take for example the Payoneer card. It great for transfering funds via a USPS partner such as Google (Adsense), Amazon (affiliate program), Paypal or any of their partners in the US that’s on their white list. But international bank or wire tranfer is unavialable. So if you’re living abroad, you just can’t transfer funds via local bank or any bank for that matter.
Neteller on the other hand allows transfer of funds via bank transfers, cheques or bankwires according to their website. But there’s no options for transfer of funds via Google (Adsense), Amazon (affiliate program) or Paypal.
I guess this is the reason why I have applied for both cards to get the best of both worlds …
- Neteller – Allows me to transfer funds via bank transfers, cheques or bankwires anywhere in the world.
- Payoneer – For transfering my earnings from Google (Adsense), Amazon (affiliate program) or Paypal.
There’s one thing you need to check also … For Payoneer, not all USPS partners support the countries where you are located. For example, my Google (Adsense) is based in Hong Kong and there’s NO options to transfer the funds to my Payoneer account (only local bank account – in my case it’s a HK bank). If you’re located in the US … then what I said shouldn’t matter.
Another thing you need to look out for are the charges and fees that each card applies. Don’t forget the exchange rate charges too … if you make purchases other than the stated currency a 2.95% to 3% fee is applied.
All-in-all, I think it’s great that companies like Neteller and Payoneer are allowing users from anywhere in the world to apply for prepaid cards. It’s certainly has helped me a lot, and I hope it does the same for you. I think if their funding options can be improved for both cards, then that would make things even better.
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