Upwork takes a crazy conversion fee?

[#1]

Hi all

One of my Freelancers that lives in Albania says that upwork takes about 25% of the money as conversion fee. 

Before he could take out the money as USD and convert it in a bank. New he cannot do that anymore and needs to convert it on Upwork itself and it has a really bad conversion rate and since he has no other chance, he looses 25%. 

Is that correct? Does someone else experience the same issue?

Best

[#2]

No, Upwork does not take any conversion fees, their banking partners do. The exchange rate is not great but the freelancer does not lose anywhere NEAR 25%. That is nothing short of ridiculous. Is the freelancer trying to get you to pay him outside the platform? I can't think of any other reason why they would be lying to you like that.

There is also no reason why they should not be able to withdraw to a US Dollar balance as before or via Payoneer. 

Or they could withdraw to PayPal and do it that way.

[#3]

Hello Petra

Thanks a lot for your reply. That actually helps a lot. 

So if I understand you correctly, it is still possible for freelancers in Eastern Europe to withdraw money in USD to a Bank in Eastern Europe that has a USD account and receive it in USD, so they do not need to use Upworks change rate, correct? 

And out of curiousity, how much would Upworks exchange rate be (if I use that one) compared to the actual in a bank account? (Just approximately)

Thanks a lot! For us such information is critical. I love paying Upwork, since I love the work and value Upwork is proving to us. Nevertheless I want to have it transparently so I know what our people receive. 

Best
Pascal

[#4]

Depending on the tax legislation in the freelancers country and the legal form of the freelancer, Upwork might also deduct taxes from the amount that is paid to the freelancer. This can easily get to 25% or more.