Change in currency conversion rate

bhuvaneshwaran20 · ‎10-18-2020

Hi,

I am Bhuvaneshwaran freelancer, While transfering fund, the currency conversion rate which show by the Upwork is totaly different from the actual rate which is shown by google and other platform. Why is that?

Currency conversion is the same all over the place, why there's a difference?
Rrefer the enclosed image

AleksandarD · ‎10-19-2020

Hi Bhuvaneshwaran,

The difference in exchange rates is not something Upwork can control. When a bank converts a transaction, they will mark up the interbank rate to buy or sell a currency. Online calculators will not take into consideration the mark up that is applied. Since rates constantly change throughout any given day, the rate you received is the rate offered by our bank at the time your specific transaction was processed.

Thank you.

~ Aleksandar

victor_vlas · ‎02-16-2021

I think Upwork can control, it is just another method of milking more money from us

petra_r · ‎02-17-2021

Victor V wrote:
I think Upwork can control, it is just another method of milking more money from us

Upwork is not a bank. They send the funds in US Dollars, the conversion is done by the banks. You also have to remember that the mind-market (aka "interbank") rate is not something retail customers have access to. The exchange rate shown on calculators or Google or Forex pages is not what is used by any bank to exchange customers' money. Banks sell currency at a higher rate than they buy it, which is how banks make money (not being charities and all that).

victor_vlas · ‎02-17-2021

Yes, I know that Upwork is not a bank, but rather an escrow.
However, the exchange rate they provide is not fair and could! be better.
As for today, 0,808 usd to eur and 0,83 is a big gap. Even my local bank (from a low-tier country) offers a better exchange rate, various international financial institutions offer 0.82 on average. I understand the difference is insignificant, but add it to other expenses like upwork fees, fees VAT taxes, connections. Shouldn't I feel pissed off?

petra_r · ‎02-17-2021

Victor V wrote:
Yes, I know that Upwork is not a bank, but rather an escrow.
However, the exchange rate they provide is not fair and could! be better.

Upwork do not provide the exchange rate. Banks provide exchange rates.

Victor V wrote:
Shouldn't I feel pissed off?

Only you can decide what you want to feel beeped off about. But if you choose to be beeped off, be beeped off at the banking system as Upwork, contrary to wild conspiracy nonsense theories, does not control the exchange rates.

Also remember that the banks involved don't just charge you for the exchange rate. The exchange rate includes the cost of the transfer. Ask your local bank what they'd charge you to send funds to America (on top of the exchange rate).

Direct to local bank works out expensive. So don't use it. Use one of the other withdrawal methods if they work out cheaper for you.

bhuvaneshwaran20 · ‎02-17-2021

Of course they are, it's a huge difference in the price and they get bulk
money from us

petra_r · ‎02-17-2021

Bhuvaneshwaran K wrote:
Of course they are

Nonsense. You simply don't understand how currencies are traded.

Again... Upwork sends US Dollars into the banking system. What happens after that has nothing to do with Upwork. You do understand that banks are not charities and take money for what the do, such as moving your money across the globe, right?

In my experience "direct to local bank" is not the cheapest or fastest option, which is why I don't use it. But that isn't Upwork's doing, it is simply because traditional banking is not cheap.

bhuvaneshwaran20 · ‎02-17-2021

Petra R wrote:
Nonsense. You simply don't understand how currencies are traded.

Really, talking about the "Nonsense"😒
I know that Banks are not charities, neither do we. If you don't understand the process involved and other ways to transfer money without currency conversion, I request you to explore it.

If Upwork charge 20% for the money we get, we grantly accept it as a good platform for connecting people. If you don't have solution find one to avoid the currency conversion.

At the same time It's Upwork responsibility to get what we earned, not to deduct the money we earned with efforts. If really that's the case be transparant with the banking charges and let the freelancers know the direct cost cutting.

@Petra, if you're thinking from a freelancer point of view, you'll understand. You're talking from your management perspective, you may don't even know how Upwork top level manangment works with the cashflow for 100%, in that case you can't give assurance about the banking and currency conversion.

Talking of the customer satisfaction, it includes everything, not just connecting people, understand others perspective as well.