Fiverr Community Forum

How much of the amount I tip actually goes to the seller?

If I tip $5, I am charged $7.28 in total for the ‘privilege’ of sending the money.

How much does the seller actually receive?

Are they charged an additional 20% fee on top of the fee I have already paid?

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I got $5 tip once but I received $4

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Hi,

Yes, Fiverr charge a 20% fee on the amount the seller received. It’s not related to the buyer fees.
So, if you pay $5 as a tip, you may get charged $7.28 but the seller will earn $4.

Basically, Fiverr charge a flat 20% on the seller.

Thank you.

Ok thanks for confirming. I thought this was the case, but I could not believe that Fiverr takes a 45% fee for sending a seller a tip for doing a good job!

I guess it makes the decision about whether or not to tip a very easy one when it turns out almost half the amount is not going to the seller.

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It’s not actually 45% fee

Fee max limit is capped to maximum $2 (plus processing fees) I think. but when you calculate the percentage compared the the value of $5, it seems huge…

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Source: Payments Terms and Conditions

Tips are considered purchases.

“Tips are considered purchases.”

Only in the bizarre world of Fiverr. Back in the real world, a tip is never considered a purchase; you aren’t buying anything!

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Yes, I saw that a larger percent goes to the seller who earnt the money when giving larger tips.

However, most ‘gigs’ I order are for $5 - i.e. a ‘fiver(r)’. I don’t want to give a tip that higher than the original cost. Most people tip around 10-20%. Sadly that’s not possible here and I can only assume it’s due to greed - which is even sadder.

I think the main reason is to keep all fees consistent across the board. That avoids issues such as buyers or sellers trying to pay less but tipping more to avoid fees. It can feel frustrating for sellers to see a fee come out of what is called a tip but the fees are just kept consistent between all payments.

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It depends on where you go in “the real world” too. In many places, tips have to go into a “common pot”, and will be divided fairly between the person you wanted to tip and the one you’d prefer to never see again :sweat_smile:, and the state wants its share of tips, too (at least if the tipped ones “stick to the rules”).

I agree, though, that in an ideal world, a tip should reach the person it was intended for in full.

On another note, though, as a freelancer, while I certainly appreciate a tip, I prefer it when people pay a fair price without trying to barter, to a tip. Both of that is nice, too, of course. :slight_smile:

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Inflation and transaction costs. (Especially the latter.)

Most businesses hide the fee in the cost of goods or service, and consider it a part of overhead for accounting purposes (iirc), but it’s part of the the reason that there are still some businesses out there that are still cash-only (or ‘minimum purchase required for card payments’). Electronic transfers are expensive enough, that a business can’t not pass on the cost to a consumer.

Fiverr, being the Escrow, must process tips as a separate transaction.

There are two ways I can think (at the moment) of to minimize the fee. One is allowing users to transfer funds bulk onto their account. Downsides include making such transfers necessary to be irreversible. Two is owning and operating their own bank. Downside of that includes operating a completely different business in a completely different market sector and all the problems that come with operating a bank.

One problem that both those have is that Fiverr is global, both Buyers and Sellers, which brings exchange rates and law into the mix. I can’t remember which, but there is a country that does not permit Fiverr (unless that’s changed in the last few months).

I suppose my phrase “tips are considered purchases” was a bit off, though I was trying to keep it succinct. It’s more accurate to say: Tips are a separate transaction, and thus incur fees that are passed on to the buyer.

Oh, one last thing.

Aside from what was already mentioned by @miiila , most tips you make off-line are either in cash, or written as an add-on to the total before a card is processed.

The fee for processing my $5 payment is a few cents not $2.28.

Foreign transaction fees are in the region of 1%.

I don’t think Fiverr should do it for free. There’s a huge gap between free and their 45% fee.

The obvious solution is to never give tips - which is what the vast majorty of buyers do.

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Seller will receive minus 20% from the whole amount of order.
The whole amount will be counted without service fee.

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Not arguing the ridiculousness of it, just explaining why it exists.

Source: Per-Transaction Fees Definition

Fiverr picked 5.5% plus a fixed fee if under $50 USD.

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