Fiverr Forum

Save Yourself from Fiverr’s Foreign Exchange Fees

Fiverr undeniably financially discriminates against non-U.S. workers. I’ve earned a little bit from Fiverr to supplement my income and every time I want to withdraw my money I find myself doing the same Google search:

“reducing Fiverr foreign exchange fee”

It’s not specifically Fiverr that hurts my finances. They take 20% and that’s not hidden at all. It’s the two platforms that I can then use; Paypal and Payoneer. It’s simply not possible for me to end up with the same amount of money as an American Fiverr worker does if we both land a $100 gig.

I crunched the numbers and found what I think is the cheapest way for non-American freelancers to get the money in their local currency account.

Basically, you still need to pay your dues to Payoneer, but you avoid their 3% non-USD fee in favour of a lower 1% USD-USD fee. You do this by transferring the money that goes to Payoneer out to a USD bank account provided by Transferwise. Transferwise then uses a much lower currency conversion fee to get your Fiverr-earned USD into your local currency.

My approximate calculations when using Fiverrs services handle USD currency conversion:

3.6% loss if using Payoneer
2.6% loss if using Paypal
1.6% loss if using Transferwise with Payoneer

We still lose out simply because we’re not American, but we lose out less at least. The ideal would be to transfer directly with Transferwise, or for Paypal to accept Transferwise and we’d be sitting at an around 0.5% loss. Maybe one day.

Cursorary self-promotion alert - I’m not trying to spam, just be helpful for others who may perform the same Google search I did. To be clear, you DON’T need to click the link to find out how to save on fees; I explained this above

I published a full article on my Medium page. The friend link is below so you don’t need an account to view. I hope all this helps somebody out there! (edit, link removed. Check my next comment if you’d like to find it)

*************.

Mod Note: Outgoing link removed.

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It costs companies money to do exchanges with other countries, adds a lot of admin work and there is also an element of risk. It’s not discrimination for a company to avoid making a loss on the costs of doing international business. Fiverr, Payoneer and PayPal don’t owe it to you to take a loss.

You’re ranting about something every other business it its right mind would do. There are costs associated with doing business internationally. If you don’t like that then don’t do business internationally. But no one has wronged you.

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This line is a bit of a stretch.

Fiverr is a global community. They do not control the global financial workhorse. They are doing what any other company would do. Foreign exchange fees are unavoidable.

Q: Before you signed up, did you not read their terms of services to know what you were getting yourself into? They pretty much laid it all out on the table, no?

BTW~ Your link was removed by a Mod. It looks like you didn’t read the Community Guidelines either. :woman_shrugging:t4:

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@humanissocial In all cases, I’m happy to use their services if they operated with reasonable margins. I’m not criticising the uniform 20% at all and I’m not sure where you picked up on any request for anyone to make a loss? My main annoyance is the funnel of two choices which both offer uncompetitive fees. If I were a garage owner who fixed your car with parts from two suppliers that you knew were offering the same part for a 25% higher price than others, you’d prefer to get that part from elsewhere, no?

@nikavoice As per my post, foreign exchange fees are unavoidable, yes. But they can be sizeably reduced which is why I’m posting. The link was removed as the mods deemed it self-promotion despite it simply being a longform version of what I posted and promotes my services in no way. When you can find the guideline that has been broken, please send it my way.

As I found this forum when Googling myself how to avoid the fees (and found no solution), I am posting this for others who will Google themselves in the future, that’s all.

Rather than take my word for it, the linked article detailed my experience and how I established the difference in percentages.

Rather than risk another link removal, for future non-American Fiverr user who is fed up having to earn less than other, you can Google “Save Yourself from Fiverr’s Foreign Exchange Fees” and look for a Medium article. The top image is a green background with USD burning on the left. I hope my information helps you too.

I’m not referring to their 20% cut.

I’m referring to the exchange conversion fees.

These can’t be lowered without creating a loss. These companies want to pay themselves for administering these functions. You’re assuming there’s a significant markup on these costs. There isn’t.

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Hmm, now I’m curious, did you write the Medium Article? :no_mouth:
Besides, I don’t feel like googling at the moment. I’m falling asleep! :zzz:

@humanissocial Paypals relatively high exchange fees are well documented when compared against other exchanges. If Payoneer results in a higher fee still, then both are either taking on uncompetitive market rates and passing the costs onto the customer or are making a markup.

I suspect the latter. I’m in no way advocating that they’re wrong in doing so. It’s good business. But so is minimising costs, which is what this post is detailing for fellow freelancers to benefit from. Somehow you’ve interpreted this as me desiring Fiverr, Paypal, and Payoneer to take a loss so I don’t have to. I’m absolutely not. I do think ‘international’ sellers are given a shorter stick than their U.S. counterparts though and I’m trying to help reduce that deficit for them.

@nikavoice My original post did state “I published a full article on my Medium page”. To quote from elsewhere in this thread, it looks like you didn’t read the full post either :man_shrugging:

That’s why it was removed. Because essentially what you’re doing is self-promoting. Hence the reason why the Mods removed the link in the first place. Yup, it looks like you won’t be getting any claps from this forum and no I’m not going on a scavenger hunt to find it.

Nope! Reading the first line about discrimination turned me off. :pineapple:

Toodles :v:t4:

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This post is for those who earns more the 1K per month but those who earns hardly 50 each month dont care about these fees

Your post however eloquent isn’t really fair. I went through the same thing earlier this year…only I found out using Payoneer works out best for me than Paypal or Payoneer + Transerwise.

You see the problem here? We both done our homework and what’s best for me isn’t the best for you…and vice versa.

If Fiverr would try to accommodate what’s best for every single individual freelancing here they would then have to offer multiple different combinations and still people would complain.

And yes, much like yourself, I also found out that if PayPal would work with Transferwise (or any other Virtual Account) that’d be the best for me. Why aren’t you writing a post about how Paypal is discriminating against Virtual Bank Accounts owners?

Bottom line is this is not discrimination, it’s simply a business decision. If you’re able to get yourself an American Bank account and they refuse to pay you there because you’re not American, then you may have a case.

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Thank you. There are so many ways to mitigate the impact of international transfer fees. I don’t understand why people don’t research these things and instead blame the system for paying itself.

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@wowgrafix Precisely this. I’m not earning anywhere near enough on Fiverr to have this affect me majorly, as my article detailed. I was curious to see what impact it would have on a full-time scale though and it’s painful.

@urdeke Appreciate your input. Good to see thoughtful input expanding the conversation rather than some previous messages shot down from ivory towers. I’m curious as to what your experience was as I’d like to expand my post to include other conclusions. I see your profile states based in Thailand, but so did mine until a few weeks ago due to living in Bangkok for a few months - are you still there? Is Transferwise uncompetitive with Baht from your experience? I had to transfer GBP-THB and it seemed the best option for me.

I’m no longer in Thailand and while there I was still using PayPal still. So from PayPal it would go to my bank account and from there I’d withdraw it.

I honestly don’t remember how much in baht I was getting for each NZD.

Transferwise gives you the commercial rate but they have a fee. I personally like they are transparent about it and you can see in real time exactly how much you’ll get in your currency.

Payoneer has a 2% spread over the commercial rate, which consistently gives me more on each dollar than PayPal or Transferwise would.

No it really isn’t. There are lots of banking things you can do to reduce these fees. If you’re concerned about what the impact would be on full-time scale, I encourage you to research.

It is Paypal doing you the damage . Let’s suppose you live in a random country outside U.S. and your local currency is XX .

Let’s suppose you set your Fiverr to pay you in USD . When you recieve USD in your Paypal and paypal knows the country you live in, it will automatically try to convert USD to XX with its own conversion fees . The paypal conversion fees are ridicolous and you will surely lose money .

What you need to do if you live in a country outside U.S like me. Contact PayPal and tell them you do not want them to make the currency conversion for you, just let them send them in USD .They will keep only a 5 $ fixed fee . Let your local bank do the conversion . Even though your local bank fees would be worse than the standard, they will be much better than Paypal .

The best optimal option would be to have the bank account in USD . This way you do not lose anything except for the 5 $ Paypal fee .

:slight_smile:

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I’d add that PayPal only converts it into another currency if you tell it to.

Also, people need to remember to transfer the currency from Fiverr in U.S. dollars, too, instead of switching it like they normally would.

@humanissocial It is painful, hence my research. You’ve frustratingly twice now mentioned my needing to research the topic as though I hadn’t. I wrote in excess of 2,000 words detailing the costs based on my calculations, experience, and advertised rates by the companies involved.

If one was to earn $50,000 through Fiverr, it would be around a $1,000 to $1,400 loss on currency conversion and fees Payoneer and Paypal invoke. That can be reduced to around $600 (for GBP) when converting Payoneer to Transferwise. If Payoneer could be taken out the equation that would reduce down to around $200. That’s a reduction of $800-$1,2000pa depending on if you use Payoneer or Payal exclusively.

Perhaps that’s not a painful loss for you, but it is painful for me and could pay my rent for a couple of months. I’m happy to disagree on what costs are acceptable and not, but please don’t continue to patronise me by suggesting I research as though I have no idea how foreign exchange rates work. The entire point of the post is on how I’ve researched and worked to reduce them.

@urdeke that’s interesting to note. I saw a 3% fee for Payoneer to handle non-USD currency. Did you not have this? That’s where most of the loss was made, plus a less favourable exchange rate than Transferwise (but better than Paypal). Unless I’ve misunderstood, you’d lose 3% on any USD-NZD (or USD-THB) transfer PLUS the exchange rate spread, but only 1% on USD-USD transfers and no exchange rate spread.

@cristocola Thanks for the tips. I’ve got a US bank account (via Transferwise) but Paypal sadly won’t allow me to add this as my Paypal account is in the UK. My (UK) business bank has a very competitive EUR-GBP exchange rate so this may extend to USD-GBP. I will look into this option to have them not convert before sending. How did you find this out, if you don’t mind my asking?

For me on Payoneer I’m charged 2 fees: When I transfer from Fiverr to Payoneer I pay a $3 flat fee to load the funds within 2 hours or $1 to load the funds within 2 business day. I normally don’t withdraw small amounts so this fee is negligible in my case and I’ll exclude from this scenario.

Then Payoneer only charges me 2% of the Dollar commercial rate. Here’s a simulation I just did for USD100 to GBP

Payoneer = 89.21
Tranferwise = 89.35
Payoneer + Transferwise = 87.53

So Transferwise would give the best result at the end, but since we can’t add funds straight from Fiverr there then it makes no difference.

The best way, hands down, would be if we could transfer funds from Paypal to Transferwise, but that’s not happening so for now Payoneer is my best option.

You’ve totally missed my point.

My point was that you haven’t researched how to mitigate those costs. There are MANY things you can do through banking and pricing and accounting. I never said you haven’t researched exchange fees work or impact you… of course you had. That’s what I was referring to.

And yes US to CDN does affect me. But I’m not blaming my platforms for that. I’m not angry with them for paying their cut. I am working with a bank to find solutions. International business costs money to do. Businesses wouldn’t enable it without making a decent profit. Just because you have a higher amount of costs for that, that doesn’t mean these companies owe you something. It’s high because of the amount of money you make.

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Thanks for the workings; the Paypal-Transferwise combination definitely seems to be the best if it could be done. Do you have a non-standard account for Payoneer for the 2% rate? I don’t recall any fixed fee for receiving USD-USD funds with my Payoneer.

My findings were I’d lose out on 3% fee, but have a slightly better exchange vs Paypal. I may look into examples with $100, $500, and $1000 dollars to see how it differs with low amounts.

@humanissocial I don’t believe any company owes me something and never stated that despite being accused of it twice by you. I expect them to cover their costs, and I similarly should be expected to minimise my own. Perhaps the medium of text rather than conversation is causing further confusion without the assistance of tone or something but I’ll leave it at agreeing to disagree here as the conversation hasn’t moved forwards between us at all.

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