Payoneer + Stripe Methods and Common Problems

Hey guys,
As you may know, citizens of many countries are not be able to use Paypal, 2Checkout and other payment gateway services. Seems like using Payoneer as virtual bank account in US and registering Stripe by using this info is the only solution so far. I've read many forums and discussions, since Payoneer virtual bank account is pre-paid, you can not refund money and you are literally stuck when customer opens a dispute. If there is anyone in here using Stripe with Payoneer, I'd like to ask how do you handle this?
Another problem is using Stripe with fake contact infos. In the long run, how often Stripe contacts you via phone or real mails?

I know it might be out of a lot of peoples' grasp, but if you're setting up a legitimate business, then this doesn't seem like too crazy of a suggestion. One option is to setup a business entity in the US (or other country where the payment processor is allowed) and then applying with your business entity information. I know the US allows many different types of foreign owned business entities (unless you live in an OFAC sanctioned country). Just an idea for anyone who is looking for other options. Also, if you do this, then you'll probably be subject to US taxation (I'm not a CPA, so I'm not absolutely sure on this), so that is something else to be considered.

Perhaps try paddle? (www.paddle.com) They seem to have a pay by wire transfer option. I'd contact Payoneer support first to make sure paddle isn't blacklisted for incoming transfers or anything.

SEO said:

I know it might be out of a lot of peoples' grasp, but if you're setting up a legitimate business, then this doesn't seem like too crazy of a suggestion. One option is to setup a business entity in the US (or other country where the payment processor is allowed) and then applying with your business entity information. I know the US allows many different types of foreign owned business entities (unless you live in an OFAC sanctioned country). Just an idea for anyone who is looking for other options. Also, if you do this, then you'll probably be subject to US taxation (I'm not a CPA, so I'm not absolutely sure on this), so that is something else to be considered.

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While a legitimate solution the drawback is that is a comparatively expensive solution. He'll get taxed in the US and I'm guessing that the headaches of avoiding double taxation with his country are going to be big, which means more money to be paid on US + local consultants to clear up the bureaucratic mess, plus the time and effort until one makes this work.

jazzc said:

While a legitimate solution the drawback is that is a comparatively expensive solution. He'll get taxed in the US and I'm guessing that the headaches of avoiding double taxation with his country are going to be big, which means more money to be paid on US + local consultants to clear up the bureaucratic mess, plus the time and effort until one makes this work.

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I agree. I certainly didn't mean to suggest it wouldn't have its problems, but if you have a good product and your only major barrier is payment acceptance, then I think it's worth consideration.

Thanks for the replies. Never heard about paddle. I'll check it out. However, I've slightly different condition. I already have a SSN, because I've spend a year in USA with J1 visa. When I was working there, since I was not a citizen, I was paying my income tax and getting my tax back at the end of the month. Actually I've no problem paying my tax but start-up costs are just not affordable for me atm, because I've no experience in dropshipping and looking for an adventure to get some experience by trying it in first place.
Another question is my relation with USA gov. Let's say I made a lot of money by using this method and did not pay my tax to The States. When I will try to visit USA, I don't want be prosecuted for tax evasion.

batiatus said:

Thanks for the replies. Never heard about paddle. I'll check it out. However, I've slightly different condition. I already have a SSN, because I've spend a year in USA with J1 visa. When I was working there, since I was not a citizen, I was paying my income tax and getting my tax back at the end of the month. Actually I've no problem paying my tax but start-up costs are just not affordable for me atm, because I've no experience in dropshipping and looking for an adventure to get some experience by trying it in first place.
Another question is my relation with USA gov. Let's say I made a lot of money by using this method and did not pay my tax to The States. When I will try to visit USA, I don't want be prosecuted for tax evasion.

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I would suggest consulting with a CPA/tax-planner (or whatever the equivalent is in your country) who is familiar with working with the US, but I'll give you what my understanding is on this subject:

If you don't have a business entity in the US, and you are not a citizen of the United States, then I don't believe you will have any tax liability to the United States for sales that occur from people in the United States. Now, if you have any kind of citizenship status (I'm not sure if work visas count), or a business presence (Corporation or LLC), then the entity would incur tax liability for which you would be responsible. Again, I would advise consulting with a CPA to be safe.

Being that you have a SSN, you might have the presence needed in the US to get a payment processor, etc, but I'm not quite sure being that I've never been in that situation. If you do, then you probably have the tax liability that comes with it. A lot of the lock down on payment acceptance is due to the "Know Your Customer" and anti-money laundering laws, so being that you already have a SSN, that might be enough. Sorry I can't be more help, but for nothing else, I'm optimistic for your situation .

jazzc said:

Perhaps try paddle? (www.paddle.com) They seem to have a pay by wire transfer option. I'd contact Payoneer support first to make sure paddle isn't blacklisted for incoming transfers or anything.

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Tried Paddle, no luck...

Edit: You can actually use Paddle everywhere but with only following currencies: EUR, GBP, USD. Tried on Woocommerce, it seems working fine. But I got chilly vibes, because they ask no info, documents etc... I would probably have difficulties if I'd want to withdraw my balance. No doubts why the fees are high. %5 + 50 cent per transaction + $15 fixed fee if you want to withdraw your money between $50 - $10.000. Besides that, interface has no Turkish support (but most of major languages are supported).

batiatus said:

Tried Paddle, no luck...

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If you are from Turkey you can use Halkbank, I've used them here in Macedonia for online payments and afaik they are a turkish bank.

aadelmalik said:

If you are from Turkey you can use Halkbank, I've used them here in Macedonia for online payments and afaik they are a turkish bank.

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What do you mean by saying you used Halkbank? You used it to register Paypal? I have no problem with paying money, I'm not able to receive payments from customers online. Every bank has a payment gateway system in Turkey if you have a company and pay them ridiculous startup fees. Plus most of Turkish origin banks have some other local versions in various countries such as Cyprus, Azerbaijan, Macedonia, etc. They use same name but have no organic relation with the original bank in Turkey.

jazzc said:

While a legitimate solution the drawback is that is a comparatively expensive solution. He'll get taxed in the US and I'm guessing that the headaches of avoiding double taxation with his country are going to be big, which means more money to be paid on US + local consultants to clear up the bureaucratic mess, plus the time and effort until one makes this work.

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I'm led to believe you wouldn't be double taxed. If you were to register a company like you're talking about, you would pay corporate tax on your profits then your personal income is what you're saying would be double taxed. There might be ways to reduce the amount of tax owed... depending on your countries laws, and what you decide to "pay" yourself, as traditional income (which you wouldn't do if you were avoiding tax).

batiatus said:

What do you mean by saying you used Halkbank? You used it to register Paypal? I have no problem with paying money, I'm not able to receive payments from customers online. Every bank has a payment gateway system in Turkey if you have a company and pay them ridiculous startup fees. Plus most of Turkish origin banks have some other local versions in various countries such as Cyprus, Azerbaijan, Macedonia, etc. They use same name but have no organic relation with the original bank in Turkey.

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Yes they do require company but fees are very little here, like 2% and $300 startup fee. It works like stripe people enter cards and they buy. Ask for full fees list, maybe they are lower.

aadelmalik said:

Yes they do require company but fees are very little here, like 2% and $300 startup fee. It works like stripe people enter cards and they buy. Ask for full fees list, maybe they are lower.

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Having company is the real pain-in-*ss in Turkey. Income tax is up to %30 + monthly accountant fees. Let's say you already have a company. Banks are trying to charge you 500$/year just for a stupid payment gateway system. Paypal is banned in Turkey in order to banks get some piece from the growing online business pie. Online sellers and freelancers are just starving atm. Typical 3rd world country corruption.

Bread said:

I'm led to believe you wouldn't be double taxed. If you were to register a company like you're talking about, you would pay corporate tax on your profits then your personal income is what you're saying would be double taxed. There might be ways to reduce the amount of tax owed... depending on your countries laws, and what you decide to "pay" yourself, as traditional income (which you wouldn't do if you were avoiding tax).

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What bugs my mind is, I'll provide to Stripe a real SSN and a bank account in USA, even though it's a virtual one. The process is not earning money -> not paying your tax because you are not a citizen. It is like earn money -> pay your tax -> get your tax back. At least it is how it was in PA.