I lost 9% of my earnings when withdrawing

[english_voice]

Hi. I am a UK based Fiverr seller and I have just withdrawn my earnings to PayPal. However about 9% of my money has disappeared. Seconds before completing the withdrawal my profile showed I had earned £2,268 (the figure in green in the top righthand side of the screen next to profile photo). However, only £2,068 reached my PayPal account. I have lost exactly £200. Can someone explain what happened? Are these Fiverr fees or PayPal fees or has something gone wrong? That £200 represents about 25 hours of work (I sell part time on Fiverr and those were my earnings from the past year). I am totally gutted. I don’t feel the withdrawal process is clearly explained. Should I have transferred to my bank account? Would that have been cheaper bearing in mind that I’m based in the UK? Thanks.

[mariashtelle1]

Did you withdraw in dollars or did you choose to withdraw in pounds?
You might’ve lost that on the conversion rate

[english_voice]

Thanks for the reply. The confirmation email showed I withdrew in dollars. I didn’t know I could withdraw in my own currency 😦

[english_voice]

PS. It’s too late now obviously, but for next time where would I be able to change the withdrawal currency? Thanks.

[visualstudios]

PS. It’s too late now obviously, but for next time where would I be able to change the withdrawal currency? Thanks.

There’s no way. You either withdraw in pounds directly, in which case it gets converted by Fiverr, or you withdraw in dollars in which case you then have to convert inside Paypal and pay their fee. Unless you have a way to get the money out of an ATM in dollars, you’ll always have to convert somewhere.

[english_voice]

There’s no way. You either withdraw in pounds directly, in which case it gets converted by Fiverr, or you withdraw in dollars in which case you then have to convert inside Paypal and pay their fee. Unless you have a way to get the money out of an ATM in dollars, you’ll always have to convert somewhere.

Thank you. But does 9% feel like a fair exchange rate fee? It feels huge to me.

[visualstudios]

Thank you. But does 9% feel like a fair exchange rate fee? It feels huge to me.

Paypal charges a 2.5% fee on top of the actual exchange rate (may vary by country, this is what they charge in Portugal, and I assume EU - not sure about Britain, since they don’t play by the rules for some reason). The exchange rate will vary depending on currency. If 1 USD is worth 0.5 GBP, you’ll get 50% of the dollar value, minus the 2.5% Paypal fee. There’s nothing fair or unfair about it, it’s the way currencies work (except for the Paypal fee, that’s just robbery).

I never let Fiverr handle the exchange, I always cash out in dollars, since then I can keep the money on Paypal in USD and wait for a good exchange rate (when the $ is strong against the €) to batch convert a lot at once.

[english_voice]

Paypal charges a 2.5% fee on top of the actual exchange rate (may vary by country, this is what they charge in Portugal, and I assume EU - not sure about Britain, since they don’t play by the rules for some reason). The exchange rate will vary depending on currency. If 1 USD is worth 0.5 GBP, you’ll get 50% of the dollar value, minus the 2.5% Paypal fee. There’s nothing fair or unfair about it, it’s the way currencies work (except for the Paypal fee, that’s just robbery).

I never let Fiverr handle the exchange, I always cash out in dollars, since then I can keep the money on Paypal in USD and wait for a good exchange rate (when the $ is strong against the €) to batch convert a lot at once.

Thank you. I guess what I should have asked is is there a more efficient way to withdraw earnings from Fiveer to sterling (£)? As a UK based Fiverr seller it means I lose nearly a third of my gig rate (20% Fiveer fee, 9% exchange rate / withdrawal fee). In fact, because I am self employed and I have to declare earnings for tax - it means I lose around half of my gig rate. All of a sudden selling on Fiverr doesn’t feel very appealing.

[visualstudios]

Thank you. I guess what I should have asked is is there a more efficient way to withdraw earnings from Fiveer to sterling (£)? As a UK based Fiverr seller it means I lose nearly a third of my gig rate (20% Fiveer fee, 9% exchange rate / withdrawal fee). In fact, because I am self employed and I have to declare earnings for tax - it means I lose around half of my gig rate. All of a sudden selling on Fiverr doesn’t feel very appealing.

I don’t know how it works in the UK. For me, the most efficient is what I outlined above. Get the money in USD to PayPal - paying 0. If you then buy stuff in $ with PayPal (eBay, for example), you aren’t paying anything to convert. If you need GBP, convert from USD to GBP when the GBP is weak - losing 2.5% conversion fee.

As a general rule, freelancing online is always less appealing when you live in a country with a stronger currency / higher cost of living - and you are location independent in terms of work, so it pays to move. Conversely, if you live on a country with a cheap currency or very low cost of living, you can live very well doing very little, as $1 will stretch much more. Portugal has both a weaker currency than Britain and a lower cost of living - all while having good infrastructure, safety, and stability, which many cheap countries do not have. So, just move here?

[english_voice]

I don’t know how it works in the UK. For me, the most efficient is what I outlined above. Get the money in USD to PayPal - paying 0. If you then buy stuff in $ with PayPal (eBay, for example), you aren’t paying anything to convert. If you need GBP, convert from USD to GBP when the GBP is weak - losing 2.5% conversion fee.

As a general rule, freelancing online is always less appealing when you live in a country with a stronger currency / higher cost of living - and you are location independent in terms of work, so it pays to move. Conversely, if you live on a country with a cheap currency or very low cost of living, you can live very well doing very little, as $1 will stretch much more. Portugal has both a weaker currency than Britain and a lower cost of living - all while having good infrastructure, safety, and stability, which many cheap countries do not have. So, just move here?

Ha ha! Again, thank you for making the effort to reply. For what it’s worth - I love Portugal and Spain. More importantly I love the people. We all have backgrounds and stories to tell… sadly mine keeps me in my country for a while longer.

[visualstudios]

Ha ha! Again, thank you for making the effort to reply. For what it’s worth - I love Portugal and Spain. More importantly I love the people. We all have backgrounds and stories to tell… sadly mine keeps me in my country for a while longer.

Spain is slightly more expensive in terms of living costs, so if your income is not based on local salaries, Portugal is the better option, no question. Everything else is quite similar. Portuguese people tend to be better english speakers as well, lol (since we don’t dub anything, always subtitles, so we’re way more exposed to the language). That Spanish accent xD

[markp]

there are services that provide more favorable exchanges at the mid market rate. That is if you withdraw in dollars to paypal and then transfer the currency using a different service you will get a far better rate of exchange, especially if you are changing larger amounts

[visualstudios]

there are services that provide more favorable exchanges at the mid market rate. That is if you withdraw in dollars to paypal and then transfer the currency using a different service you will get a far better rate of exchange, especially if you are changing larger amounts

That’s not available here, though. I can’t get the money out of Paypal into another service (revolut, for example), in USD, it forces the conversion to euro on transfer. Paypal doesn’t like to lose that fee.

This leads to the ridiculous situation of getting paid in USD, transferring to revolut (PayPal auto converts to euro on transfer) and then having to exchange it into USD again on revolut to be able to buy stocks (since the investment account must be in $). It’s absurd, but there’s no way around it.

[markp]

use transferwise…

[english_voice]

Thanks to everyone for replying. You’ve made me feel better. I just wasn’t prepared (or expecting) to lose such a massive amount of money in transfer fees. Because I withdrew a large amount of money, losing £200 in fees feels like a huge amount (it is!).

Sadly many buyers on Fiverr don’t appreciate the money us sellers lose in fees up to the point of money arriving in our bank accounts. As a proofreader, I try and set my hourly rate so that it’s affordable for small businesses. But even then I find that many European businesses (and I love Europe!) won’t want to pay any more than $15 an hour… after all the fees, this only leaves me with about $10 or about £8. This is below the living wage in the UK - and soul destroying for a professional writer with 25 years’ experience. Living expenses here in the UK are expensive…

[visualstudios]

use transferwise…

You can’t get money from Fiverr to transferwise directly. If you get it to paypal in USD and then try to get it from PayPal to transferwise, it will convert automatically. Doesn’t work (in the european union at least).

[markp]

You can’t get money from Fiverr to transferwise directly. If you get it to paypal in USD and then try to get it from PayPal to transferwise, it will convert automatically. Doesn’t work (in the european union at least).

No of course you cant transfer directly to transferwise from fiverr but if you want to transfer from paypal to transferwise and keep the funds in USD you need a borderless account and then you can change the funds when you like .

[visualstudios]

No of course you cant transfer directly to transferwise from fiverr but if you want to transfer from paypal to transferwise and keep the funds in USD you need a borderless account and then you can change the funds when you like .

You can’t do that in Portugal at least. Paypal forces the currency conversion to euro and doesn’t allow you to transfer money in USD to any other account (other than another PayPal account).

[lambdhadrien]

I’ve seen that PayPal charges fees depending on the amount you receive, you can calculate on these types of websites -> https://salecalc.com/paypal

[necvictor]

That’s exactly the same 9% I’m losing when withdraw with paypal. I was so disappointed that I almost gave up (still active but without much motivation). For me, on top of what you mentioned that is lost (which with taxes sums up 50%!!!), I also have expenses like buying filament and shipping items.

I find this platform so bad for sellers, that most of the money everyone work here goes to Fiverr, PayPal, banks and government.

What is sad in my opinion is that I also find this way of doing business by taking advantage of the many, especially people from third world countries where an US dollar buys them a lot of stuff and they just work harder and harder despite of all the money lost.

what I also find very frustrating is that they charge the fee even for tips. I mean I couldn’t believe it, those money are completely optional and are a way of some buyers to reward your hard work and their satisfaction.

Overall this is not a nice place to work; or at least not for everyone

[english_voice]

That’s exactly the same 9% I’m losing when withdraw with paypal. I was so disappointed that I almost gave up (still active but without much motivation). For me, on top of what you mentioned that is lost (which with taxes sums up 50%!!!), I also have expenses like buying filament and shipping items.

I find this platform so bad for sellers, that most of the money everyone work here goes to Fiverr, PayPal, banks and government.

What is sad in my opinion is that I also find this way of doing business by taking advantage of the many, especially people from third world countries where an US dollar buys them a lot of stuff and they just work harder and harder despite of all the money lost.

what I also find very frustrating is that they charge the fee even for tips. I mean I couldn’t believe it, those money are completely optional and are a way of some buyers to reward your hard work and their satisfaction.

Overall this is not a nice place to work; or at least not for everyone

Wow, this thread is nearly half a year old - but the facts remain the same.

For sellers in some countries the combined fees and local taxes are extremely high. There’s Fiverr commission to consider, as well as PayPal exchange rate / transfer fee, local taxes, national insurance (for UK sellers like me). Sellers in the US are best placed to work on Fiverr - based on fees alone.

However, it’s up to every seller to do their research and to find a price point that works for them. As a proofreader my overheads are low. I have a laptop computer, an internet connection and my time. However, sellers who require specialist software like Photoshop (I mean the legit sellers, not those using pirated versions) have higher overheads, and yet might not be able to charge much more than me - due to buyer / marketplace expectations.

I don’t think it’s fair to have such a negative view of Fiverr. We’ve got to remember that Fiverr is itself a moneymaking business for its shareholders, and the platform has allowed many thousands of people to be successful and earn money from home by utilising their skills. The sellers who moan tend to be the unsuccessful ones. It’s our choice to work here.

Although I understand the emotional argument around Fiverr taking commission on tips, in my opinion you’ve got to look at tips as a bonus. In the real world it is not customary to give tips for completing a business transaction. It is actually very unusual.

As for sellers being exploited - I would argue it is up to everyone, regardless of where in the world they are, to take responsibility for their own business. If people choose to sell gigs for $5 that promise a lot of work along with unlimited revisions, they’ve only got themselves to blame.

[necvictor]

Thanks for taking the time to reply, altough I disagree with most of the argurments.

I don’t belive there’s good or bad views, it’s just everyone opinion based on the their expectations.

Also I wish money were the only issue, but there are just too many broken things within this platform (e.g. abusive buyers just buying gigs asking ten times more then the gig is offering, and sellers purely having no control on that, but to go on resolution centers and ruin ratings with cancelled orders, or buyers asking for revisions again and again etc. - the forum is full of these topics).

I appreciate the effort and resources whoever is behind Fiverr had put to get it up and running, and they have to make money at the end of the day. But I feel the maintaing side of things, considering sellers feedback and taking action is were the lack is (they’re functioning for years already and haven’t changed much to make a good experience for both sides sellers and buyers).

The main thing - everyone is free to come and go whenever they please in the end, so no complain about that.

thanks again english_voice

Victor

[cubittaudio]

Wow, this thread is nearly half a year old - but the facts remain the same.

For sellers in some countries the combined fees and local taxes are extremely high. There’s Fiverr commission to consider, as well as PayPal exchange rate / transfer fee, local taxes, national insurance (for UK sellers like me). Sellers in the US are best placed to work on Fiverr - based on fees alone.

However, it’s up to every seller to do their research and to find a price point that works for them. As a proofreader my overheads are low. I have a laptop computer, an internet connection and my time. However, sellers who require specialist software like Photoshop (I mean the legit sellers, not those using pirated versions) have higher overheads, and yet might not be able to charge much more than me - due to buyer / marketplace expectations.

I don’t think it’s fair to have such a negative view of Fiverr. We’ve got to remember that Fiverr is itself a moneymaking business for its shareholders, and the platform has allowed many thousands of people to be successful and earn money from home by utilising their skills. The sellers who moan tend to be the unsuccessful ones. It’s our choice to work here.

Although I understand the emotional argument around Fiverr taking commission on tips, in my opinion you’ve got to look at tips as a bonus. In the real world it is not customary to give tips for completing a business transaction. It is actually very unusual.

As for sellers being exploited - I would argue it is up to everyone, regardless of where in the world they are, to take responsibility for their own business. If people choose to sell gigs for $5 that promise a lot of work along with unlimited revisions, they’ve only got themselves to blame.

Not sure if this would be of use to you or not, but letting you know just in case.

Starling Bank offer Business accounts here in the UK (GBP). Once you’ve got one, you can then apply for a USD Starling Business account at a cost of £5 per month.

I’ve done this, and I now withdraw my money in USD via Payoneer to the USD bank account. I then immediately transfer the money from my USD Starling account to the GBP Starling account via the app. You pay a nominal fee (I transferred about $1000 yesterday and paid something like $8 in fees). You do also pay a fee to Payoneer, but this is less than the PayPal fee.

Importantly, you then benefit from the conversion rate offered by Starling, rather than the ones offered by Payoneer (bad) or Fiverr (awful).

[markmckeown87]

Not sure if this would be of use to you or not, but letting you know just in case.

Starling Bank offer Business accounts here in the UK (GBP). Once you’ve got one, you can then apply for a USD Starling Business account at a cost of £5 per month.

I’ve done this, and I now withdraw my money in USD via Payoneer to the USD bank account. I then immediately transfer the money from my USD Starling account to the GBP Starling account via the app. You pay a nominal fee (I transferred about $1000 yesterday and paid something like $8 in fees). You do also pay a fee to Payoneer, but this is less than the PayPal fee.

Importantly, you then benefit from the conversion rate offered by Starling, rather than the ones offered by Payoneer (bad) or Fiverr (awful).

UK seller here.

Up until a while ago I would always have to withdrawn in USD to PayPal and then when I withdrew from PP to bank, that’s when the exchange rate would apply, however I was randomly prompted a while ago to confirm my currency and since then all withdrawals from Fiverr have been in GBP.

Also worth noting that, even though I now operate in GBP, the value shown beside your profile picture is not normally the actual value you will get, I think it’s actually the amount you have available for withdrawal in USD, converted to GBP, but using an exchange rate not equal to what PayPal use, therefore it’s inaccurate.

It’s possible you experienced a combination of both of these.

[chichiwj]

I tried to use Transferwise as many Fiverr sellers have suggested. Fiverr to Paypal USD, Then send USD to Transferwise Borderless account , Then use the conversion USD to GBP there and withdraw. So I don’t have to use the PayPal Exchange rate.

But Now (must be a new rule) Paypal charges 3% If you wanna withdraw USD from Paypal to your Transferwise USD account. So even though we can skip PayPal exchange rate, It’s not worth as we have to pay 3% for PayPal.