Fiverr Community Forum

Can someone explain the disparity between my earnings and what I can withdraw?

Hi all. I’m a new seller. I’m really confused about the disparity I keep seeing between the amount that I’ve reportedly “earned” (featured in the top right corner) and the amount that I can “withdraw”.

For example, today I was waiting for some funds to clear and they finally did. I netted USD $208 (with the 20% that Fiverr had already taken out, of course), which then showed up as AUD $293.89 in the top right corner of the “Earnings” page. However, when I went to click on “withdraw”, the amount available was AUD $272.41, a difference of roughly 8%. Can someone help explain to me why there is this disparity? This is before I’ve made any sort of withdrawal or transfer, so it couldn’t be my bank or PayPal’s fees yet, because they have yet to be taken out. Is Fiverr charging a currency exchange fee of some sort that I’m unaware of? Is there any information about this anywhere?

EDIT: I forgot to mention that I’d already tried to see if fluctuating exchange rates could account for a difference of that size, and it’s simply not possible. The exchange rate hasn’t changed that much. There would be a difference of maybe up to one or two percentage points, not 8%. Nowhere near that.

EDIT #2: Okay. I have worked out a few things.

  1. Yes, the exchange rate has fluctuated A LOT in the past couple of months, and I charged the customer back in October.

  2. Yes, Fiverr does charge an exchange fee. It’s 3%. Ouch. I wasn’t taking into account that there were two factors at play here.

  3. Unfortunately, creating a PayPal USD wallet won’t help because their conversion fees are also quite high.

  4. This guy came up with a (kinda) workaround that slightly reduces the international currency exchange fee gouging, but honestly it sounds incredibly difficult to set up and complicated. https://jimonf1.medium.com/save-yourself-from-fiverrs-foreign-exchange-fees-210ff5d2db99#:~:text=According%20to%20the%20Fees%20page,subject%20to%20a%20whopping%203%.

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It’s probably because of the difference in exchange rates from day to day. You are earning in USD, and you’ve set Fiverr to display your earnings in your local currency AUD. So Fiverr uses an exchange rate (I am not sure where they get it from) to display your earnings in your local currency. Exchange rates change every second (but probably daily for sites like Fiverr).

You can go into your settings and set it to show your earnings in USD. That’s what I personally do, then I added a USD wallet in PayPal that allows me to withdraw into PayPal the full amount in USD. That way I have no fees and no loss in USD. I can then use Transferwise to withdraw from PayPal to my local currency with minimal fees. Or as a lot of services I use charge in USD and accept PayPal, I then pay with the USD and don’t lose out on exchange rates.

I hope that helps.

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Yes, that’s the difference made by currency exchange.
Consider checking out payoneer as withdrawal method. It depends on your countly and your bank, but generally the best way to go is to set fiverr to USD, withdraw USD to payoneer (with 0 fees), then withdraw to your bank in local currency (exchange fee would be about 2%, but there might be additional bank fees applied, you have to do some research for your situation).
Or just stick to USD all the way, as suggested above, if that would work for you.

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Ok. I think I worked it out. Have edited original post. I don’t know if a USD PayPal wallet is the answer, though.

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Thanks. This seems like the most sensible course of action. I will set everything to USD and let my bank apply the exchange fee. The rate Fiverr charges is 3%, I believe, so I’ll check with my bank, but hopefully it’s lower than that. And the flat Payoneer fee of $3 is better for higher paid gigs.

I’m pretty sure if you are outside the US, you still pay fees to withdraw to Payoneer from Fiverr.

It is if you want to avoid payoneer fees and the poor Fiverr conversion rate.

Good luck with your bank, it won’t be any better than Fiverr’s rate or even Paypal’s rate. Withdrawing from Fiverr -> PayPal USD -> Transferwise USD account -> Your local account will give you the best rate.

But then again, as you said if you are earning higher rates, losing $20 - $30 might not bother you.

Good luck.

Yep, it does look like Transferwise is the best option, going forward.

Even if I was able to set up a PayPal wallet in USD and send the payments directly to my credit union, I would still have to pay roughly a 3% conversion fee. I rang my credit union this morning and they confirmed this.

Transferwise do offer accounts to Australians. It would be a bit of an effort to do, but because Fiverr is more of a side gig for me now, I might not go through with the trouble. At the moment I have just accepted that I’m only ever going to get about 76% of whatever I charge my customers.

If I do end up making a regular income off of Fiverr, I know that Transferwise is an option in the future. Thanks for the advice.

No, it says so on fiverr’s getting paid article, but I never get charged anything upon withdrawal. It is supposed to be $3 (which still would be better for larger sums comparing to any other withdrawal methods), but I get all of the cleared funds without any fees other than currency exchange.
Maybe the article is outdated or there are some special conditions for certain countries, not sure about that.

UPD: dug up my emails from the latest withdrawal. Here’s the math.
I had $585 on my balance, I got +$585 to payoneer upon withdrawal.
Official rate for the day of withdrawal was 76.09 roubles per 1 USD, making it worth a total of 44518RUB.
I got 44326RUB to my bank account, essentially making it less than 1% fee.
It would normally be closer to 2%, but it was an early monday morning withdrawal, so payoneer was still stuck with friday’s higher exchange rates.

I agree. You can then withdraw into your local currency.

The problem with that is, I will have to take a 3% cut via international currency conversion fees. In this case, my Credit Union uses Western Union, and they take a 3% cut. I would have a similar issue with any bank in Australia, so it’s really much of a muchness. It all works out around the same.

I will look into getting a Transferwise account, but I might again have the issue of having huge transfer fees to transfer from that account into my normal account. Not entirely sure yet.