What is Skrill?

Selecting a reliable multi-currency account, online money transfer service, prepaid debit card or payment gateway can be pretty rewarding but challenging with so many providers vying for your attention. Skrill is one such provider that’s been around for quite some time. It started under the name Moneybookers but several years ago it got rebranded to Skrill. In the article below, we will explain what is Skrill and how the service can be used. For more information on the matter, check Skrill’s official website.

Skrill has evolved to offer a wide range of services, including payment gateways (used for e-commerce), bank account withdrawals, international money transfers as well as cryptocurrency trading. Partly because of this flexibility and because they are a FCA regulated way to hold funds, many of Skrill users are forex traders and online gambling customers. They also have a multitude of ways to fund your account and can be very fast at transacting which ensures their appeal. Skrill also goes head to head with PayPal as a payment gateway and is used by over 120,000 online merchants globally.

How does Skrill Work?

Getting started with this e-wallet is a simple process but as you will see the verification process is  interesting.

1. Select “Register” on their online sign up page or download the Skrill app on your iOs/Android device.

2. Enter your personal details such as First name, Last name, Country, Currency and email address

3. Set a password and click “Register now”

4. Once you log in, you’ll be asked to set up your security Pin

5. Fund your account with a deposit. (Funding your account is mandatory for account verification. Plus verifying your account means you can use their service uninterrupted and increase payment limits associated with your account).

You can found your account through these methods:

• Bank transfer
• Debit/credit card
• Bitcoin and Bitcoin Cash
• Neteller
• Paysafecard
• Trustly
• Klarna

6. Complete the verification process by keeping the following documents handy.

Personal Account

A color copy of your ID (such as driver’s license or passport) and a proof of address (for example, a utility bill or a bank statement issued in the last three months).

Additionally, you may be asked for “live” identity verification, for example, by sharing a picture of you holding up your ID. You can also verify your ID by linking it with Facebook.

Business Account

National ID of the Skrill account creator, proof of registered company address, incorporation certificate to prove you’re a legitimate operating business (not applicable for sole-traders) and details of your shareholders and business partners on company header (signed and stamped, not applicable for sole-traders). You also have to complete a Merchant questionnaire.

If you follow the process to the tee and submit the right documents, your account can get verified within 5 minutes.

What is Skrill? – Fees!

4.1 Deposit Fees

No matter which deposit method you choose to top up your account, you will be charged a convenience fee (except in the USA). Navigate to the “Deposit” section of your mobile or online account to check out the fees associated with your chosen top up method.

4.2 Withdrawal Fees

Withdrawal fees depend on the withdrawal option. This is how it looks like in the Eurozone:

• Withdrawal to Bank account– flat fee of EUR 5.50
• Withdrawal to VISA – 7.5%
• ATM withdrawal with Skrill Prepaid Mastercard®* – 1.75%
• Withdrawal to mobile wallet – 1.45% (min. EUR 0.50)

4.3 Fees for sending money

Skrill usually charges 1.45% of the transfer amount for sending money to another Skrill account, but this can vary by location. Direct deposits to bank accounts via are free though.

The e-wallet also charges a 3.99% mark up over the Reuters exchange rate if you’re using “Skrill to Skrill” for international payments. So Skrill Money Transfer may be a better option in this case (no mark up on the FX rates). If you initiate a lot of international transfers, you may want to check out our International Money Transfer Services section.

Sending & Receiving Funds

Payments

• If your friends, family, or vendors have a an account, you can simply initiate a payment by entering their email in the “Skrill to Skrill” option in the “Send” section of your mobile or web app. The funds will be deducted from your wallet. If they don’t have an account, they’ll receive an email with quick sign up instructions. Typically, these transactions are ideal for domestic payments. The maximum per‐transaction limit using this option is 10,000 EUR or equivalent.
• You can opt for lightning-fast bank transfers through Rapid Transfer (supported by over 170 banks worldwide). Rapid Transfer is also a great way to deposit funds into your account instantly.
• For international transfers, you can opt for the “Skrill Money Transfer,” which lets you send international payments with zero-FX rate markup.
• You can activate Skrill 1-Tap instant payments for trusted online vendors.
• You can also pay online merchants with the Skrill MasterCard prepaid card.
• Verified businesses can set up Mass Payments for up to 3000 recipients with this service.

Receiving Funds

Personal accounts

Receiving payments with Skrill is free. There are three ways to get paid with Skrill on a personal account:

• You can easily receive money from clients or friends and family by sharing your email address registered with Skrill (no need to share financial details). This fund is deposited into your Skrill wallet and can be withdrawn into your bank account in all countries where Skrill Limited provides payment services.
• You can withdraw the money to a Visa card, although it will attract higher fees.
• You can also get paid via a direct deposit into your bank account
• Alternately, you can get paid into a number of mobile wallets Skrill has partnered with by sharing your registered phone number. These funds can then be withdrawn in your local currency at nearby money agents

Business accounts

• Businesses can also get paid directly into their Skrill wallets by sharing their registered email address
• Online merchants can integrate Skrill at checkout to get paid via Skrill wallet transfers, bank transfers, or by credit and debit cards

Pros & Cons

Conclusion

Currency exchange with Skrill isn’t cheap and the fee structure seems geared to your convenience rather than streamlined to minimize costs. That said, Skrill has evolved to offer a useful suite of services and those fast transfers are a potential deal maker. This e-wallet addresses a gap in the market by offering a speedy and reliable and often excellent alternative to PayPal.

Essentially, it all comes down to what YOU’RE looking for in an online payment service and digital wallet. If you are just looking for a service that does money transfers, a prepaid debit card or multi-currency account then we think you can likely do better. Opening an account with this service is free and it may be worth signing up to find out whether it’s a good fit for you personally or for your business.