Paysafecard is one of the most popular prepaid solutions currently available on the Internet. It is one of the several services operated by Paysafe Group, a company regulated under the terms of the UK Financial Conduct Authority. Currently, Paysafecard is available in dozens of countries and hundreds of thousands of retail locations all over the world. Moreover, its support is unparalleled by any other prepaid service and stands to rival credit cards and eWallets in accessibility. As it happens, the online Forex trading scene is also quite fond of Paysafecard and there are plenty of broker websites out there willing to take payments via this method. Below, we will go over the important aspects of using Paysafecard to trade Forex and what you can expect from this prepaid solution.
How to Fund Forex Account with Paysafecard
Performing deposits via Paysafecard is one of the easiest aspects of Forex trading and once you complete the process once, you will never have trouble doing a second time. The whole thing is quite simple and not really that different from other payment methods. You take your Paysafecard voucher and notice the 16-digit code printed on it. Then you find the payments page on the broker website and find Paysafecard in the list of supported services. From that point, enter the amount you wish to deposit and the code on the receipt. When you confirm the transaction the money will instantly appear in your balance and you can use it to make trades as you see fit.
Depositing via Paysafecard is easy and straightforward. You do not have to deal with many of the difficult aspects plaguing other banking solutions. Additionally, the process is the same on both desktop and mobile devices, giving you the opportunity to use all your devices for your Forex trading needs.
How to Withdraw from Forex Account with Paysafecard
As it happens, withdrawals are not possible with Paysafecard. While the Forex trading industry requires a constant movement of money between the broker and the customers, Paysafecard was not designed with this in mind. Instead, it was meant for small digital purchases, rather than large-scale transactions. As such, Paysafecard can only move money in only one direction, that of the broker. If you wish to cash in your balance, you will not be denied the opportunity. However, it will not happen via Paysafecard.
Most Forex brokers will allow you to withdraw your winnings via old-fashioned bank transfers. To this end, you will need to provide the broker with your banking information and then wait for the payment to be approved. Once it is, it will take some time for the transaction to be processed, which can be anywhere between 1 and 5 business days on average.
Benefits of Using Paysafecard for Forex Trading
Paysafecard has several benefits, which make this service appealing to customers. These come in several different forms and will have a great effect on your Forex trading experience. To begin with, those who use Paysafecard will benefit from instant deposits with this service. Paysafecard is quick and effective at processing money, allowing you no downtime.
Something else to consider is that this service can be completely free, for the most part. There are no fees for making transactions or purchasing a voucher. You will only be charged when you wish to withdraw the balance of a Paysafecard PIN to your bank account, after a long period of inactivity, or when making a transaction in a foreign currency. Naturally, these can be avoided by some planning beforehand.
Another great advantage of Paysafecard is that the service is readily available at more than 400,000 retail locations all over the globe. Odds are that there is a store near you offering Paysafecard vouchers and you can easily get your hands on one. You can even do this without going out of your way while doing normal errands. As far as availability and ease of use are concerned, few can beat Paysafecard.
Disadvantages of Using Paysafecard for Forex Trading
There are plenty of reasons why Paysafecard is not right for Forex trading and you should be aware of them before you choose a payment method. To begin with, this service does not support withdrawals and you will need to find a different method to cash out. Typically, brokers will give you the option to take out your balance via Bank Transfer, but these are quite slow and can take several business days to process.
Something else to consider is that Paysafecard has very low transaction limits, in some cases. A single Paysafecard PIN can only hold up to $100 or a sum of similar value in a different currency. This is almost criminally low and most people will not be happy with it. While you can link up to several vouchers in the same transaction, this is not the best way to deposit by any mark. It is inconvenient and requires that you purchase multiple PINs beforehand. If you want your deposits to be in the thousands then you would need a different banking solution.
Last but not least, we have to mention the fact that you have to physically purchase a voucher each time. Over time, this can get annoying and inconvenient, having to go to the store every time.
Fees and Limits When Using Paysafecard to Trade Forex
Paysafecard comes with quite clear transaction limits and a fee structure that is quite to the advantage of customers. Starting off with the transaction limits, we see that Paysafecard is quite constricted in this regard. A Paysafecard voucher can be purchased in multiple denominations, with $100 being the highest per single PIN. By itself, this is incredibly low and will not satisfy the vast majority of traders. However, it should be noted that a customer has the option to link up to 10 PINs per transaction, for a maximum payment of $1,000 at once. This does allow for higher transfers, but it is not an elegant solution, nor does it allow for as much flexibility as other services with higher limits. Take note that Paysafecard comes with different limits, depending on the country, so there may be some discrepancies.
As far as the cost of Paysafecard is concerned, you can use the service for a good while before you have to pay anything. Transactions carried out over Paysafecard are free on the service’ end of things, as is purchasing the voucher itself. However, charges can be applied in certain circumstances. For instance, making a deposit in a foreign currency will incur some exchange fees. Furthermore, an unused Paysafecard PIN will cost you $2.00 per month after 12 months of inactivity. Additionally, if you wish to withdraw the balance of a Paysafecard voucher, $7.50 will be taken from the total amount.
Paysafecard Chargeback on Forex Account
One aspect in which Paysafecard is notoriously inflexible is when it comes to refunds and chargebacks. Specifically, there are no chargebacks when using Paysafecard in any form. The company does not reverse transactions under any circumstances, not when you make a payment by mistake, not when your PIN gets stolen, or something else happens. If you are not careful with your money, there is no recourse and you will have to deal with it.
Therefore, if you get scammed and a broker refuses to payout, you will have no options at your disposal. This is something that you really have to take into consideration if you choose to use Paysafecard for Forex trading. If that is not something that you are willing to entertain, then you would do much better with other payment solutions.
Security When Trading Forex with Paysafecard
Where the security of the service is concerned, Paysafecard is great for certain customers. Specifically, those mindful of sharing their sensitive information online will be especially fond of Paysafecard. The good thing about using Paysafecard is that you are never required to submit any personal information at any point. You can walk up to the counter at a retail location and purchase a voucher with no prior requirements. Therefore, your important data cannot be leaked, if it was never submitted in the first place.
Of course, if you wish to cash out you will have to use a different solution, most commonly a bank transfer. For this purpose, the broker will ask for your banking details and these will be stored behind a wall of high-end encryption. This makes the information illegible to any unauthorized parties and you can make your trades in peace, knowing that you are not at risk.
All in all, Paysafecard is good for a niche set of customers, while many others may be better off with a different payment solution. The low limits and lack of withdrawal functionality hold back this service from being a premium payment method.