There are many important aspects of your work as an Amazon seller including the sourcing of product, customer service and packaging and delivery. Although many Amazon sellers genuinely enjoy their work, at the end of the day, it’s all about getting paid. For Amazon sellers, there are two options for payment: Payoneer and Worldfirst – both respected money transfer organizations used to quickly and safely receive payments. Here, we examine the two methods of payment used by Amazon and list the pros and cons of each.

Quick Guide:

Why do Amazon sellers need to use Payoneer or Worldfirst to receive payments?

In the USA, it is possible to receive Amazon payments directly into a US bank account, however, this is not always straight-forward and, is not available to everybody in every country. In order to receive payments straight into your bank, you need an account with a 9 digit ACH routing number plus a valid credit card (or major debit card) which Amazon will hold on file. Unless you expect to make a large amount of revenue, this avenue is rarely cost-effective. For most sellers, using a money transfer service is the cheapest and most efficient way of receiving funds as well as the Amazon recommended method.

A money transfer service, also known as a dedicated international money transfer provider, is a company which provides an account to its members into which payments can be made. As an Amazon seller, payments for your products are paid into your money transfer service account and, once cleared, you are able to either make payments from the account or withdraw funds into your own bank account.

There are a number of advantages of using a money transfer service including:

Security – these accounts limit the number of people with access to your personal or business bank account details. These services also offer security to Amazon with new sellers as they are established and well respected. Conversion – your funds are automatically converted from the currency of the sending company into your receiving currency. Exchange rates – with many money transfer services you can opt to hold the funds in a particular currency while you monitor the exchange rate. This allows you to choose when conversion takes place, thereby maximizing the amount received. For example, say you’ve sold a product to a customer in London and they make payment to your transfer service in British pounds. If desired, you could then hold the funds in your account in pounds while you monitor local exchange rates and, then, exchange into US dollars when the time is right.