Fiverr Community Forum

Best Way To Withdraw Money in UK

Hi I’m a seller based in the U.K. I’ve been selling on here for about a year.

I withdraw my money via PayPal as I’m familiar with it and it’s convenient. However, I thought the PayPal fees were around 3% but, I assume due to the currency exchange of dollars to pound sterling, I end up losing more like 9% - just through PayPal.

Obviously there is the 20% Fiverr cut taken from the price of your order before you even get anything, that’s fine I understand that (although I do think that’s too high considering they also charge the buyer tax on top of what you actually charge so the site is charging you both).

So say I get a $100 order, I get $80 which is roughly £65. The PayPal fees I thought would be around 3% based on the info on their site, which is about £1.95, but I actually end up losing about 3x this amount so I would end up with roughly £56, almost 1/10th of what I expected to get is now lost in fees.

Has anyone else had this problem? Should I use a different method of withdrawal? Is there a way round these fees? Are they right and should I just accept it?

Any help would be greatly appreciated.

James / ceilingeyes

Don’t use the PayPal currency exchange, transfer it in USD to your bank and the bank will do the transaction, most of the times it will be a better exchange than PayPal’s, to be sure you can check your bank’s website

I’m with you on this one. I wrote a similar post a couple of months ago.

I’m also based in the UK and lost 9% on transfer fees. I withdrew over $2,000. I didn’t do full research, and like you I figured I would lose 3-4% based on a quick Google.

I’ll be honest and say I couldn’t find a satisfactory explanation, it appears very complex!

As @erik_keresztes has suggested, I’d already decided that next time I will withdraw a smaller amount to my bank account and see how that goes. I also need to look into Transferwise as some people have suggested that previously - no idea if I can use that with Fiverr though.

The experience changed how I look at taking on and pricing jobs through Fiverr.

As a rough rule of thumb, when pricing a job, I simply halve the proposed $ amount for the job to get my £ profit after all fees / taxes, etc. This simple method gives me a realistic feel for whether a job is worth taking on.

Quick example $100 job >>> Fiverr take $20 leaving $80 >>> I lose 9% in fees (lets say 10% for ease of maths) >>> leaving me $72 that then becomes £58 after currency exchange >>> then another 20% (approx) in tax and insurance leaving me with £46.

I’ve also started being far stricter with enforcing my gig pricing. For example, previously if someone wanted 9,249 words proofread, I would have said let’s call 9,000 and I’ll charge $90. Now I treat those 249 words as an extra gig, so the client pays $100 as per the gig description.

Just another really quick thought, not that I ever would explain the above to a client, but sometimes I really do want to! Most buyers have no idea about the amount of money we have to pay out it in fees / taxes as genuine UK based freelancers.