Fiverr Community Forum

I've Stopped Tipping. Service Fee on Tip? Ridiculous and GREEDY!

I think there are actually a few places in the world where the custom is to do the work and then get paid afterwards, with complete trust and knowing the buyer will do that.

Some genuine Japanese restaurants have, or at one time had, the custom of bringing huge amounts of food to a table without having first presented any menu with prices, and continuing to heap food on the table until being begged three times to stop, then never presenting a check. The patron would leave an amount they felt appropriate. I experienced this in a remote part of Hawaii.

There is another country I can think of with similar customs. It is possible this is the first time sellers have encountered the idea of paying for anything first.

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So, Sad. I really agree with you. Giving & receiving tips should become free. :slight_smile:

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Fiverr is basically looking to destroy the client base. Charging 5% or more for services AND tips is pure, unadulterated BS.

It is disgusting that Fiverr trouser such a large percentage of tips, but as with a few other immoral or incompetent practices on here, its put up or shut up, because they have shown very little interest in amending anything they do to benefit users beyond the excellence of the original concept and the platform.
I have to admit, though that the taxing of tips doesn’t affect me much. After initially getting quite a few, they are pretty rare now, but frankly I’d rather the repeat customers and 100% 5* reviews (for all that matters the ridiculously implemented tiers system), because people trust me to deliver what they want.

That said, if anyone wants to tip me at any stage, I am always extremely gracious and grateful, because it is a concrete and entirely unexpected and unnecessary expression of appreciation.

So to those buyers who do tip from time to time, whether to myself or anywhere else, hats off to you.

Whew! I had no idea Fiverr puts a service fee on tips as well. It’s a tip. Why remove money from it?

I do believe that the sellers you tip are quite deserving of this gift, and I suggest you write to Fiverr Support, and keep up the good work.

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I knew Fiverr took their 20% out of tips, but I didn’t know they started charging a second service fee for living a tip too. It’s no wonder no one leaves a tip anymore.

I read someone say their excuse was to cover costs of a high level customer service 24/7. They usually take 24hrs to respond and then it’s a template based response 9/10 times!

well, I’ll not get into Fiverr here (I just started to sell and I don’t need problems :)), but I will tell you what happens here in Canada lately: If you leave a tip of let’s say 15% on a service, they apply it on the service AND the taxes they collected for it! :slight_smile:

Fiverr might be operating on a very thin margin as far as how much they earn and how much they pay for payment processing so they are asking for the extra amount to cover that.

However the last I heard Visa didn’t allow companies to charge extra to cover payment processing fees. But then fiverr does not handle visa directly. So who knows? All we can do is guess why. I know that my tips decreased a lot when that went into affect.

You are right. That’s why I haven’t got any tip :wink:

The tip on Service fee is messed up. That’s affecting the sellers and that’s NOT ok.

But stopping tipping isn’t exactly the best solution in my opinion…

I’m not convinced that it’s necessary to collect 40% of the tip from the buyer and seller collectively in order to prevent abuse of their system. There are fairer measures Fiverr could take to prevent abusing their system; like setting a maximum percentage a buyer can tip. As a seller, I actually take greater issue with the 20% service fee they collect from the buyer than the 20% commission they charge the seller. I feel like buyers would be more inclined to tip more if they didn’t have to worry about a service fee; especially at a steep 20% rate.

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They collect just from the seller that 20%. Otherwise, it’s just like a purchase with its payment fees.

And it’s necessary because I assume you want Fiverr to survive. They advertise a lot, they have tons of employees in many cities, so I understand the fees. If you don’t like the platform, don’t use it, there are many with cheaper rates. But those don’t have the flexibility that Fiverr has.

I will tip when a job is well done regardless of the service fee. The sellers deserve a tip.

I’m still getting great services at less than the actual price they are worth.

That’s not true. I was a buyer for 2 sellers. I tipped each one. Both tips had a 20% service fee added to it. This means that Fiverr is double-dipping on tips.

I thought you said it was necessary to prevent the seller from abusing the system? Regardless, I suggested a fair system where Fiverr would cap the percentage a buyer can tip. This would encourage the seller to charge more for their services, which would improve the commission Fiverr collects from the regular sale. Meanwhile the buyer is more inclined to tip, knowing they won’t have a service fee, and the buyer is happy that they get to keep their entire tip.
Also, does Fiverr not monitor the communication between seller and buyer? If there’s abuse of the system, it seems they could just address it as it occurs. If they don’t monitor the communication, then there’s nothing stopping the seller from giving the buyer their Venmo address and requesting the buyer send the tip there.

Don’t do that. This is a very disingenuous thing to say. It’s very possible to enjoy a platform and disagree with a particular policy it has. People should be able to try to improve the policies a platform has without being told, “iF you Don’t Like iT, tHeN dOn’T uSe It.”
I don’t know how much abuse Fiverr is preventing with this policy, but I personally think that by charging 20% to each the buyer and seller on tips, Fiverr is abusing their own system.

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Well it’s clear that complaining on the forum to other users doesn’t work. Go and try to talk with the official channels, but I am 100% sure they will not lower the 20% fee. Obviously people would abuse the system, everyone will go for the lower fees. Especially large orders.

The policy is fine, I am not sure why you are not ok with that. Keep in mind that unlike freelancing platforms where you must pay to bid, they put you in front of the customer. That means you don’t have to pay for advertising, which would be way more than the extra 5 or 10% they charge when compared to other platforms.

But to each his own. There are lots of platforms, we have many options.

I don’t think you know this, but Fiverr is adding a system pretty much like Google AdWords where you can pay to have your gig featured, and you pay per click. So, even more money to spend on Fiverr if you want the extra promotion…They don’t abuse their own system, you can’t abuse the system if you created it. You can adjust it to be abusive, if anything. But in this case I find it ok. I tried multiple platforms and this one is the best for me. It might not be for you, that’s why I said you may want to try something else. Unless there’s a huge dip in sales, I don’t see Fiverr lowering their fees.

I’d be more content if they would drop the 20% service fee they charge the buyer on tips. At least then the seller will be able to see an increase in their tipped income, even with a 20% commission taken out of it.

I’m not sure why you think I don’t understand that Fiverr needs to take out money to operate their business. That’s literally how every business functions. But there’s many that do so without taking any cut of the tips. That’s purely what I’m trying to address here, and I’m not convinced that a fairer policy doesn’t exist. I even suggested one, but you haven’t acknowledged it.
Honestly, Fiverr shouldn’t have to rely on a seller’s tips to survive as a business. They actually could do away with their tipping service altogether and it would still probably be a thriving business.

That may will be, but it can still be viewed as abusive to those that use their service. I know I thought it was abusive when I got charged 20% to tip my sellers, but I was presuming that they would at least collect 100% of the amount I tipped them. Now that I know that the seller only collects 80% of the tipped amount even after charging the buyer a 20% service fee for the same tip, I find it to be even more abusive as that is double-dipping on the same money.

I should point out that I really do like Fiverr’s platform as a buyer and a seller, and plan to keep using it as both. I just don’t think it’s right that they are double-dipping on tips, I don’t think it’s the only possible way they can combat abuse of the system, and I don’t think they need to take a cut of the tips to survive as a business.

I’m not sure what channel I go through to talk to the company directly about this. Perhaps you could enlighten me. I know that complaining on a forum is not the best way to get the result you want, but there is value in discussion and forums are good for that.

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It’s a microservice company, it relies on the comissions so…

I won’t argue with you. It’s clear you have your own opinion, and it’s also clear others are ok with the fee. I certainly don’t mind, if they do the work and offer all kinds of advertising services included in that fee. But to each his own.

But you’re okay with them double-dipping on the tips? I think they are doing it because they think people don’t realize it’s happening. I don’t have an issue with Fiverr taking commissions on the regular service. I can even get over taking the commission on the seller’s tips, but it’s not right for them to take that cut after already charging a service fee of the same amount to the buyer. That’s just wrong, plain and simple.

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Are they taxing you more than a regular order as a buyer? I assume no… As long as it’s that way it’s fine.

As I said, I’m fine with how they handle the regular order. My issue is strictly how they handle the tips. How does one justify taking 20% from the both the buyer and seller? If a fee or commission must be taken from the tips, it should just be from one side.

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