04 March 2011

The Problems With Using MoneyBookers

Since multiple people are asking the same question over and over, I decided to post what the responses I had been sending invidivually in a separate blog post.


Here is a sample question:


"Could you please add Moneybookers as a payment method on vWorker? ? In South Asian region, for countries other than India, paypal is not supported. "


We contacted Moneybookers about their service (more than once) .  Unfortuantely, Moneybookers is not suitable for vworker for a number of reasons: Support, pricing and U.S. availability.




1) Support:

Making sure your payment is on-time is vitally important.  Many workers rely on their payments to pay bills, etc..  If it does not come on time, it could mean bad things for the credit, etc. 



However, when you send as many payments as we do every period, problems always happen with some of them.  The only way we can support our contract obligations to pay workers on-time, is to use a payment method that will give us the tools to handle problems when they occur...and quickly.  Paypal provides us with a dedicated rep to handle these issues.  Payoneer does the same thing.  However, Moneybookers will not only not provide a rep to assist with problems. 

Worse still, they don't provide any phone support, but you must go through email.  It has taken us 7 days or more to hear back from them on certain issues!  Moneybookers is simply not setup to handle large volumes of payments, nor to make sure they are sent on a timely basis.



2) Price:


Moneybookers is extremely expensive when compared to other payment methods.  For example: 1.9% to upload (send the money) + 1.99% currency conversion fee + additional withdrawl fees depending on your country.  http://www.moneybookers.com/app/help.pl?s=fees

In comparison: PayPal charges just a fixed $2 (for those that can use it).  Western Union and Payoneer also charge a fixed charge, rather than percent (which makes Moneybookers very expensive).


3) Poor U.S. availablity:

When we wrote to them asking if we could use them to send to Pakistan and other countries that had been blocked at the time from PayPal due to new anti-terrorist laws...they said they could not accept our payments from the U.S. and send them to these countries.   Their U.S. availability is very poor as the U.S. is not their main focus of business.

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As a result, there are many better alternatives between the existing site payment methods (Western Union, Payoneer, etc.). 

Also, we hope to have announcement soon from Payoneer about their new wire transfer/ACH service that is also much cheaper than Moneybookers (and is a small fixed price, rather than a percentage)...and has no recurring fee like the ATM card option does.

Ian Ippolito
vWorker.com