Fiverr Forum

Withdraw in your local currency ... is here now!

Just was about to withdraw my revenues to my PayPal and saw this for the first time:

local%20currency

Now the question remains where Fiverr gets their conversion rate from and whether it’s even worse than PayPal’s. It looked like precious few euros for my dollars, so I skipped the new offer for now and withdrew in dollars as before, but I took a screenshot with the € I’d have gotten to compare to how many € I’ll get for it from PP. We who can’t use dollars lose out either way, but I’d like to keep it to the minimum.

Did anyone use the new option and compare already?

16 Likes

That’s exciting, can’t wait to find out who has the best exchange rate.

2 Likes

I am completely sure that this will not come to India. Payoneer is the best option available for Indian users. Even after PayPal and Fiverr are now together and removed the freelancer fees, it still hurts my soul if I withdraw the money to PayPal. There is atleast $2.00 difference in PayPal and Payoneer.

6 Likes

Nope, not yet. I am very excited, though. :smiley: :joy: I am going to have all my extremities crossed in hopes that this exchange rate will be better. :wink: I can’t wait to find out. :smiley:

That’s very interesting… I was always under the impression that Payoneer charged a lot more (than PayPal) for withdrawals, transactions, etc. I have also heard of many horror stories about Payoneer (like missing funds, lack of good security, etc). I am glad that you seem to be having a good experience so far with Payoneer. :slight_smile:

7 Likes

So, on the same day, I made a screenshot of the withdrawal amount in US$ and of the amount I’d have gotten if I had withdrawn in € and then went to PP to check what they’d have forwarded to my account for the same US$ amount and did the math.

Fiverr: USD 1,18 = €1
Paypal: USD 1,15 = €1*

first Google hit for €>US$: USD 1,12 = 1€ (this is from today, though, a few days after the fact, as I didn’t find the time then, but it’s probably been similar)

This means, for an amount of US$500, you’d get
€ 423,73 from Fiverr
€ 434,78 from Paypal

€ 445,91 hypothetical Googled course, depending on your bank

For the US$500 from our example, I’d get € 11,05 more from PayPal than from Fiverr, so, sadly, the new feature seems … well, pretty useless. At least if you withdraw to PayPal, don’t know about Payoneer.

*I don’t know if PP’s exchange rate is the same for all € countries but I assume it won’t be too different

The loss through exchange, by the way, at least in my country, is even more annoying, as for your tax declaration, for earnings in a foreign currency, you need to apply a rate published monthly by the ministry of finance, which is more like the Googled rate, i.e., you have to claim you earned more than you actually got … :upside_down_face:

16 Likes

Thank you for taking the time to work this out! :slightly_smiling_face:

We’ve been using PayPal to convert, and guess will continue to do so!

6 Likes

Withdraw in your local currency or with withdraw in any of the popular currencies. Fiverr my local currency is Naira and it is no where on your options list. Such a waste of time.

1 Like

@miiila Nice to hear about this new feature. Maybe conversion rates will improve in future as well.

2 Likes

I do hope so, that would be awesome. Or, even better, good conversion rate plus the option for direct withdrawal to bank accounts for sellers anywhere to cut out some steps and reduce time spent on organisational stuff.

3 Likes

I’m looking to withdraw my earnings today and having the same dilemma! (I’m in the UK so need to withdraw to GBP). I usually withdraw via PayPal and let PP do the conversion, but wondering if the rate for withdrawing local currency from Fiverr is any better.

@miiila - Out of interest how did you actually ‘check’ what the PayPal conversion would have been, for comparison?
Also, if you set your local currency in Fiverr, can you revert to USD if you change your mind afterwards? Thanks!

1 Like

Yup. Hope to see that as well in near future.

1 Like

Hi James,

yes, I did check, see post #5 in this thread.
You can revert, yes, I just wanted to see how much I’d get in € and then switched back to USD to actually withdraw.

1 Like

Sorry yes, I was just wondering if you had found a way to see the current exchange rate via PayPal before withdrawing (because you said you went to PayPal to check ‘what they would have paid you’). I only ever seem to find out the PP exchange rate once the money hits my account, by which time it’s too late to compare…!

1 Like

Ah, got you now. Yes, I can easily see that before I actually send the money to my bank account.

Try this:
https://www.paypal.com/li/smarthelp/article/where-can-i-find-paypal’s-currency-exchange-rates-faq1976

1 Like

Thank you so much @miiila for doing the maths for us. I skipped it too until I am sure about it. I will stick to the usual way. Thanks

2 Likes

LOVE the idea, just wish the conversion rates were better than PayPal’s. I lose a small fortune in bad PP conversion rates

3 Likes

I’ve just done my monthly withdrawal and checked out the different currency options for comparison…

If I’d let Fiverr do the currency conversion and sent £s to my PayPal, I would have got a rate of about 1USD = 0.789 GBP. Instead, I chose to send dollars and let PayPal do the conversion, and got a better rate of 1USD = 0.802. So yes, it does seem you are better off ignoring the new ‘local currency’ feature as PayPal’s rate seems to be better.

This does somewhat remind me of those times when you’re using a debit card abroad and you occasionally get the option on a chip-and-pin to ‘pay in your local currency’. It sounds appealing, but actually it’s never a better rate - it’s actually a bit of a con.

I would who’s really benefiting from bringing in this new ‘local currency’ feature…! Hmm! :face_with_monocle:

4 Likes

I’m hoping that right now Fiverr’s rate is worse than PayPal’s because they are trying to make a small profit on the exchange of their funds held in their PayPal account (as all transaction seem to be in $$, but can be displayed in foreign currencies for visual purposes).

I’m then hoping that this feature is an indication that Fiverr is expanded it’s currencies to actually pay in different currencies and not just be visual - then building up each currency and allowing us to withdraw with better rates than PayPal. Paypal give 0.802 as you mention. Currently it’s worth 0.83. If Fiverr could get into a position to split the difference (0.815), sellers would be better off, they would make a small amount playing the currency markets and everyone would be happy. Fingers crossed!

These differences may sound marginal but they work out about £15 per £1,000. So if you earned £10,000 a year on Fiverr you’d be £150 better off

3 Likes

That’s why you don’t use Fiverr analytics to declare your earnings. You use the amount made in the transaction, preferably documenting it with an accounting program or your bank.

The withdrawal in local currency is actually very handy because it saves me from having to do it in PayPal, which is a longer process. Before withdrawal in local currency, I either had to make two transactions to withdraw money from PayPal: a withdrawal of US funds and a withdrawal of CDN funds, or convert the currency within PayPal. Now I just switch the currency in Fiverr before I withdraw.

So you don’t save any money and that’s not the point. And Fiverr isn’t going to pay you in the currency of your choice because they would lose money. I have purchased subscriptions for platforms around the world and U.S. dollars is the standard currency, anyway. No business lets you pay in your own currency, unless it is a country branch of a company.

1 Like

I’m not quite sure what you’re getting at. I said I have to declare my earnings using an official exchange rate for USD published nonthly by the ministry of finance of my country (which de facto is a fantasy exchange rate because it’s not the rate I get and I end up paying taxes and health insurance based on more money than I actually earn because of that), as that’s the correct if not quite logical procedure here which I need to follow.

My point here is that I’m losing money already through the need to exchange it from $ to € and while I realize that currency exchange is a business and all and all that is fine, I see no reason to choose a way I lose even more money with.

If I’m going to get even less €€ from Fiverr directly than through PP for my $ after all, and I don’t gain anything by withdrawing from Fiverr in €, the end effect will be € in my bank account either way I do it, I don’t see the value in that, and I think the 20% fees that I gladly pay, plus the 5% from my clients should suffice.

But that doesn’t matter for my tax declaration. I need to take the amount earned in $, put it in the official rate calculator for each month and declare those €€, even though the amounts that end up in my account are quite a bit lower.

Anyway, it’s a nice option to use for anyone who doesn’t mind the worse rate, I guess, and who prefers to see their own currency symbol sooner?
As long as I have to go through PP either way, with both € or US$, instead of directly withdrawing to my bank, it doesn’t even save me clicks/time, plus I get less money, so I’ll continue to withdraw in US$. That’s the gist of it really.

If Fiverr would start to offer direct bank withdrawal for other countries, now that would be a different story I’d need to look into as it should actually save clicks and time, and, in theory, money, I’d just need to ponder the security implications then. :slight_smile:
However, PP and Payoneer might not like that, so Fiverr might not like to even consider it, and that’s okay. I simply don’t want to additionally lose money by using a feature that doesn’t even save me time, while the procedure up to now worked just fine, is all.

2 Likes