Payoneer India Problems

January 2010 It was PayPal and this January it is Payoneer ( See my Payoneer Review ) who has issues with Indian Banking system. This is the email I got from Payoneer India Support.

Dear Valued Customer,

Due to instructions from the Indian local banking authorities, Payoneer Prepaid MasterCard cards will be blocked for local purchases (POS Purchase) made in India within the next few hours, and ATM transactions will probably be blocked soon after.

Your Payoneer card continues to be functional anywhere other than India (including transactions made online on global websites), and all funds in your account are secure.

Other payment companies have experienced similar restrictions in the past, and most have been temporary and have taken a few weeks to resolve the situation. Payoneer and MasterCard are working with local banking regulators to address the situation. Payoneer is also preparing alternative ways for you to continue to receive payouts, and expects you will be able to continue to receive your payments in the future. We apologize for the inconvenience and will keep you informed.

We have opened a special mailbox for you to communicate with our Customer Support. Please feel free to contact us at


Payoneer Customer Support

I got this email at 2 PM last night and so I assume I will not be able to transact now but still I will give it a try to see if it works for ATM withdrawal because I have more than 1000 USD in my debit card.

What are your views about Indian banking system. I doubt it will be too positive.

Update: I tried using my card at an ICICI Bank ATM and it says Invalid Transaction, it looks like ATM transactions are also blocked as of now.

Update Jan 20 2011: Got this email from Payoneer for my recent Loading of Payoneer card.

Following our recent communication regarding service changes in India, your new payout cannot be loaded to the card at this time. Within a few days a local bank transfer service will be available to you. Your money is fully secure. Once the service is up we will contact you via e-mail to collect your bank information and we’ll then transfer the funds to your bank account.

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  1. Mohd says

    I tried to signup but was not able to. They don’t provide option of India under the country of residence, so how can one signup from India?

    • says

      There is no point in anyway signing up to Payoneer card because you cannot use the card anywhere and the money you receive in the card has to be deposited in the banks.

      So possibly they have removed India as an option in the list of countries when signing up.

      • Mohd says

        Thanks for your quick response. I really appreciate it. But I want to use their Global Bank transfer service and receive funds internationally via it to my bank account. Is that possible using this service? Do you know any alternative services like this available which work fine?

        • says

          Not sure but you can try signing up through some of the partners like Elance or oDesk. Not sure about that. If you want to be using services to transfer money to your bank account why not use PayPal or MoneyBookers (Now known as Skrill)

          • Mohd says

            I thought using Payoneer is much cheaper in comparison to Paypal. Thanks for the tip for partner program, I’ll try that way.

            Moneybookers, on the other hand, is not trustworthy anymore since I read bad reviews recently that they started scamming money out of customers and not responding on their regular support numbers/emails.

            Any other options except Paypal? Thanks for your kind help so far.

  2. Kuunal says

    I came across a card called Icashcard, their website is they say they are regulated and accepted by RBI, Can we use that for our purposes
    Thank you for your answer,
    Kuunal Desshmukh

  3. md. mahamud hassan says

    Hello, I hope to visit India soon for the first time. Can I use my Payoneer card for withdraw cash from ATMs or local purchases? I am from Bangladesh..Regards

  4. taha says

    Hi, I will be visiting India soon for the first time. Can I use my Payoneer card for local purchases and withdraw cash from ATMs? I tried to purchase bus tickets online but the payment was not going through.

    • says

      Yes you should be but better to be asking the same to Payoneer support for your country. If you have Indian Payoneer card, you will not be able to use them in ATMs

  5. nonon says

    Thanks once again for everything, have to go out now. See you next time. Till then Good Luck.


  6. nonon says

    I think I have done with the signup :). Yay!! you are lucky, I have visited Kotak (Mulund-W) and HDFC (Andheri-E) branches similar reasons. And yes, they do call me but I have to courier or submit the Print out copy of Hand signed Remittance letter, and also have to visit them to fill up a form (not the remittance paper). Don’t remember what it’s called :( (as I wasn’t interested:D )

    • says

      Yes if there is no reason specified from Payoneer the reason for inward remittance it has to be done by the bank and that is why this problems. I get many other Remittance payment from lot of other payment options and they give the reason for remittance and so I at times don’t even get a call from SCB

  7. nonon says

    Yeah, Talia and I’ve had done that for a couple of times (or three times?), but unfortunately, I have to sign few papers and request forms with my bank, so annoying and time consuming, so I gave up.. I don’t know, whether this happens to all the Indian Payoneer users, but in Mumbai, I guess. I have to send a letter called “Request letter for inward remittance” to the bank everytime I receive payment. Moreover I have to visit the bank (every time I receive payment through payoneer [wire transfer]) and fill up a form with details like, the sources, purposes, etc.. Anyway, it’s my personal issue :)

    @Shabir, a sign up form for signing up to this blog :)

    • says

      nonon, See http://

      Also I will jump into the question you had to Talia for wire transfer. Your bank is having the process and it is not the same process for all banks. I have an account with Standard Chartered bank and they call me and ask about the inward remittance reason and once I say it is for the XYZ reason it gets credited into my account. Which bank needs you to visit the branch?

  8. says

    Hi nonon,

    I’m not sure if you know (and the others), but you can still receive your money through Payoneer, just through direct bank transfers. Contact our support for details if you need :-)

    • says

      Talia, Yes I know about the normal payment but I am not sure what happens to my Virtual US account. I was using it but I am not sure does it works now as it was working before or not and what about the fees.

      • says

        Hi Shabbir,

        You can still use your VA and receive funds there, but you can only withdraw them through the transfer service since you no longer are able to use a MasterCard in India.

  9. nonon says

    Thanks Talia, good to hear that and hope everything will be ok very soon :).

    Shabir, isn’t there a sign up form here? :D, I couldn’t find any…

  10. says

    Hi guys!

    I know this is an old post, but I wanted to let you all know that we have discontinued the indiasupport@payoneer email address. From now on, you can all contact us directly through the regular contact form. All of our reps are 100% up to date with all the information about India.

    Feel free to come over to our forums and talk to me if you have any questions.

  11. says

    Good News. Got this email from Payoneer.

    Payoneer is pleased to announce our new wire transfer service.

    Following our recent communication regarding card service changes in India, Indian users now have a convenient alternative for receiving payments directly to their bank account.

    Please go to our secure registration page at Payoneer Wire Transfer Service and enter your bank details. The required information includes the name of your bank, your account number, the name of the account owner, and the bank BIC/SWIFT (an international standard Bank Identifier Code). To find out your bank’s BIC/SWIFT you can use the online BIC search at, or simply ask your bank (explain that you are expecting an international wire transfer).

    Please note that the transfer will be made in US Dollars. Transfers can be made to your local currency account or to a US Dollars account, if you own one. Once you register for the service you will receive the funds currently pending for you, as well as future payouts from Elance. Please allow up to a week for a transfer to arrive at your bank account.

    The first transfer will be made free of charge, courtesy of Payoneer. Future transfers will be made for an introductory fee of $5.00 (promotion valid through March 31, 2011).

    We hope this new service allows you to continue working smoothly. Our Customer Support staff continues to be available to you for support – please feel free to contact us at

    Now when I visited the form they asked for a Bank Number and when inquired I found that it is the number on your cheque after the cheque number.

  12. says

    They blocked online transactions as well ,yesterday I was registering the domain at Namecheap ,They were saying bad card..Hope this problem will resolve soon..


  13. says

    I don’t know what is the problem with Indian government “ghotala krne ke liye hai ye sab’ ,They are trash they are useless guys only knows how to throw chairs in parliament

  14. says

    I got this email from Payoneer for my recent Loading of Payoneer card.

    Following our recent communication regarding service changes in India, your new payout cannot be loaded to the card at this time. Within a few days a local bank transfer service will be available to you. Your money is fully secure. Once the service is up we will contact you via e-mail to collect your bank information and we’ll then transfer the funds to your bank account.

    You may be wondering why I am still loading my card but I think I have no choice or else if I need to get my CJ and Clickbank amount in cheque which means I get the cash after couple of months anyway.

    • says

      Is it? I emailed them and they were ready to reverse the last 2 loads and they are now working to get the money deposited into the banks instead of cash withdrawals.

  15. Nonon says

    There is no way to transfer Payoneer balance to Paypal or vice versa. This is the problem why we are stuck. Actually this is an old discussion since Payoneer came into available for Indians and other countries. You will get many results/discussions about this when googling.

    FYI!! Payoneer isn’t a U.S. company, it’s an Israeli company Headquartered in New York City (of course in the U.S.).

    If I am right, Wire Transfer or Money Transfer is possible, I have no idea whether this is possible to India or not, no specific details mentioned on the Payoneer’s website. For more details, You can check out the Payoneer website.. “International Wire Transfer” and “Money Transfer Services” sections.

    Good Luck

  16. Srikanth says

    I have a Payoneer Virtual US account with me. Can I withdraw funds from that account to my Paypal account through online transfer? Do Payoneer and Paypal allow it?


    • says

      I am not sure if we can transfer from Payoneer to PayPal. You may need to ask Payoneer probably for confirmation but As far as I remember about the terms of Payoneer Virtual US account is only for deposit and withdrawal is only possible through the card. You also cannot accept Wire transfer into this virtual US account.

  17. Nonon says

    Same here, I also received the same message from Payoneer but in fact it didn’t mention that ATM transaction would be blocked but only “Probably” so I waited for few hours and when I visit an ICICI ATM, I could no longer withdraw. More than that, when I get back and check the transaction history, I was charged $.90 per swipe.

    I really appreciate Payoneer as most of the time we get the full online Currency Conversion rates, while paypal bank transfer would come out much lesser. I’ve tried and compared this several times. If the online currency rate is of $1=Rs.45, I will get only Rs.43 when transfered from paypal to Bank Account. Yes, payoneer do charge $2 per transaction at ATMs, but that’s acceptable, since we are charged the same amount even if we withdraw Rs.10000/- or Rs.1000/-, and of course, they need fees to run the System.

    Let’s hope for the best so that we will not suffer for this any longer. This online money transaction issue has been given much trouble to many online freelancers, etc…

    RBI, Please fix it at the earliest possible. We are not criminals or terrorists….. We are citizens of India working day and night to fill our stomach… :((

  18. says

    This is the email I got from Payoneer.

    Dear Shabbir ,

    It is very sad news for us as well. We just hope that situation stabilizes in the future and Payoneer will continue to provide its services to valued card holders in India.

    “Quitters never win and winners never quit”

    Please feel free to contact us if you have any additional questions.



    Payoneer Customer Support Supervisor

    Looks much better handling the situation than PayPal but let us see if they can come up with any solution and how?

    • says

      Yes, compared to PayPal Payoneer support is very good. I am happy that I was able to withdraw my funds in the morning as they informed us in advance. Whereas, PayPal was reversing transactions!

      I am sure they’ll come up with a solution soon.

  19. says

    Luckily, I was able to withdraw money today morning around 8AM.
    I used the ATM of State Bank of India. Although, ATM withdrawal charges are higher but still i am not sure when this would be resolved so it was wise getting out the money at higher rate.

    • says

      Yes complete piece of crap things by Indian Govt. They are working on minor things where bigger player are still able to do what they want to.

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