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oDesk New Fixed Price System Results in 6 to 7% Straight Loss for Foreign (Indian) Currency Employers

apeee
Active Member
Rohit A Member Since: Apr 3, 2010
1 of 3
I am from India and I have to bear currency buying and selling charges for converting INR to USD which is around 3 to 3.5%. I have been bearing that charges from the start which was not a problem! However with the implication of new Fixed Price System (via which we work most of the time) where one has to deposit either full or milestone payments to oDesk first, has given us a hard time. For contracts where employee are not performing well and we have to end the contract in between; oDesk refunds the balance to our bank account. So now we have to bear USD to INR charges which is again 3 to 3.5%. Now, if I want to get the same work done via another employee (2nd contract) via oDesk then again I have to deposit amount to oDesk (consider that I am depositing the same refunded amount which oDesk transferred to my bank when first contract was ended) where again I have to bear 3 to 3.5% of USD to INR charges. So in such circumstances we have to bear STRAIGHT 6 to 7% loss. (Fluctuations of currency has nothing to do with this, it is buying and selling of currencies). In Summary: 1st Contract: Deposited $100 to oDesk but I had to pay $103.50 (3 to 3.5% INR to USD) 1st Contract: Refunded $100 to my bank i.e. $96.50 (3 to 3.5% USD to INR) 2nd Contract: Deposited $93 but I had to pay $96.50 (3 to 3.5% INR to USD) (so I had to bear a STRAIGHT loss of 6 to 7% here when one contract is completely refunded). The loss increases when 2nd & 3rd contract for the same work is ended. Though I liked the old fixed price system very much and would like to see it again but it seems that oDesk is not letting their old customers use this feature the only applicable solution for this problem is creating a "deposit balance" account at oDesk so that any remaining balance does not gets refunded automatically and gets saved in oDesk deposit balance for use with other contracts or for manual refund (if someone wants to gets refunded to bank account). If a solution is not made soon via oDesk then unfortunately I have to shift to other platforms, even though oDesk being the best for me. I hope people at forum will support this feature, so as well oDesk!
marciamalory
Community Guru
Marcia M Member Since: Apr 3, 2013
2 of 3
Someone else (not Indian) also complained about bank fees being doubled from having to pay one fee when having to deposit the first milestone payment and then having to pay another one if the money is refunded. But wouldn't this happen with any refund - if using the old fixed price system you gave an upfront payment and the work wasn't satisfactory so the freelancer refunded the upfront payment? Or do you all just not pay your freelancers upfront payments? And how often do you hire someone, find the work is unsatisfactory and expect a refund? If it's enough times for this to be a problem, then either your hiring practices are very poor or you are taking advantage of freelancers and trying to avoid paying them for work. "The loss increases when 2nd & 3rd contract for the same work is ended." - Really? You hire 3 freelancers to do the same job and none of them are able to do it to your satisfaction? And this happens with enough jobs that 3.5% bank fees are causing a problem? What exactly happens to the "unusable" work that your freelancers submit? I hope oDesk keeps track of clients who accept refunds excessively as it keeps track of freelancers who give refunds excessively.
lanwanman
Community Guru
Ronald T Member Since: Sep 14, 2009
3 of 3
[quote=Marcia M.] And how often do you hire someone, find the work is unsatisfactory and expect a refund? If it's enough times for this to be a problem, then either your hiring practices are very poor or you are taking advantage of freelancers and trying to avoid paying them for work. "The loss increases when 2nd & 3rd contract for the same work is ended." - Really? You hire 3 freelancers to do the same job and none of them are able to do it to your satisfaction? And this happens with enough jobs that 3.5% bank fees are causing a problem? What exactly happens to the "unusable" work that your freelancers submit? I hope oDesk keeps track of clients who accept refunds excessively as it keeps track of freelancers who give refunds excessively.[/quote] How often...work is unsatisfactory? Frequently! Accordingly to a US based, West coast, work-from-home oDesk support rep, freelancers in India pose the most problems on oDesk. It was a lengthy, very informative conversation. These days, unlike during the "golden years" here on oDesk, the same 'caliber' of persons worldwide work remotely for oDesk. To the best of my knowledge and believe, oDesk does use refunds as part of their algorithm / metrics aka "mad robots."
Ron aka LanWanMan
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