Fiverr Community Forum

Why tip have also 20% Deduction?

I don’t Understand Why fiverr have also a 20% deduction from a Tip.it’s just unfair because they already deduct you 20% in order Price,Why not give the tip full to seller ?or at least make it 5%

2 Likes

I never understood this either. But, they also charge buyers a $2 service fee to tip. This means if a buyer were to tip $5 they’ll pay $7 and you’ll receive $4.

Just one of the mysteries of Fiverr…

1 Like

It’s not a mystery and has been discussed here many times.

If tips didn’t have a 20% cut, people would negotiate with buyers to sell something for $5 that is worth a lot more and then get paid for the rest via tip to avoid the 20% on a larger order fee. People were doing this to game the system.

5 Likes

Blame the cheaters unscrupulous sellers for the present 20% fee on tips. :zipper_mouth_face:

3 Likes

I don’t see how that would even work.

How would the seller know the buyer would tip? They could sell something for $5, expect a tip, and never receive one.

There’s no logic in trying to game the system, in my opinion.

3 Likes

Why not give the tip full to seller ?

Fiverr’s a business. It’s able to earn more money by taking a cut of tips.

4 Likes

I don’t know but isn’t a seller in a loss in this,what if a buyer didn’t give the tip.

2 Likes

Customer satisfaction is part of having a business, and I don’t think buyers like paying fees. To me those fees making Fiver look desperate for money, like those hotels that charge a $20 to $50 a night resort fee.

When I buy on Fiverr, I’m less likely to tip thanks to the new policy.

4 Likes

Because they would negotiate doing that first.

As an average Joe user, I agree with you.

I think Fiverr must have crunched the numbers, though, and realised it can earn more by deducting 20% from all orders and charging a processing fee.

2 Likes

Because they negotiate doing this first, probably off of Fiverr. They probably know each other.

It’s well documented that this scam used to happen on Fiverr. This isn’t a theory. People used to actually do this.

1 Like

It would be an agreement on faith, yes, but serious buyers wouldn’t cut and run because they’d need the positive feedback to be able to keep buying from fiverr. If they didn’t tip as agreed the seller would just leave bad feedback. The 20% tip cut is annoying, but it makes sense and is kind of unavoidable for the reason humanissocial mentioned.

Yes, transactions cost money and resources, too.

I gathered that. :slightly_smiling_face:

But (certain) buyers are known to renege on agreements with sellers.

It just seems like it’s not worth the risk.

1 Like

I would love to know when and how this was the case.

I joined Fiverr in 2014. There was not a tip feature at the time. I know this as my then-girlfriend suggested that I suggest to Fiverr that adding a tip feature might be a good idea. (I didn’t.)

What people were doing at the time was creating gigs for tips. I had one saying something like, “I will have a beer and a day at the beach with your tip.”

Sometime after, Fiverr did role tips as we know them now out. When Fiverr did, 20% came off tips straight away just like any regular order. (And 20% had already being coming off tip gigs that sellers created themselves.)

This idea that Fiverr never used to charge a commission on tips but then had to because sellers were gaming the system is a myth.

No offense, but I am very tired of seeing people push this narrative when it is simply not true.

There is nothing wrong with Fiverr taking a commission off tips, However, I have a problem with it being said whenever threads like this popup that a commission to tips had to be introduced because sellers were being bad and needed a slap on the wrist.

4 Likes

If you know someone well enough and you each have a stake in the scam, the risk is lower and some deem it worth it.

All scams have an element of risk for each delinquent party.

I recently made a couple of purchases. I new that Fiverr reminded the buyer to tip the seller, by saying something like, “It is customary to leave a tip.” :money_mouth_face:

What I did not know is they reminded the buyer to tip twice! :scream:

Furthermore, there was a big green icon/button which said something like, “Yes, I want to leave a tip.” and a small gray icon/button that said, “Later.” There was not an option to say, “No, I do not want to leave a tip.” :astonished:

I was worried that I wouldn’t be able to complete the order without leaving a tip. :flushed:

Since I had not received a tip in a long while, I knew I must be able to not leave a tip! :woozy_face:

All of this rigamarole made me kind of embarrassed that my buyers were mislead asked to tip me so adamently often. :grimacing:

Maybe it is an Urban Legend sort of thing? :thinking:

1 Like

Not sure how you know it is a myth, but okay.

Fraud with tips is more than possible. It makes sense thst Fiverr would want to prevent that. Besides, transactions cost money and resources. There is no reason Fiverr should do that for free. This is a business.

Even if you tip at a restaurant via the machine, any transaction fees are offset by putting the costs on the customers via pricing.

I know it is a myth because I was selling on Fiverr before buyers could leave tips, as stated in my original reply,

I also edited my response before you replied to state that I am fine with their being a commission on tips. I’m just not fine with it being said that this had to be imposed to stop sellers gaming the system.

2 Likes

No I asked how you knew it was a myth that people were using it to game the system (after tips were enabled, of course).