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.