I am trying to transfer the USD from upwork to my bank account in INR. Why the exchange rate showing in upwork is relatively very low than the current one.In upwork the USD->INR exchange rate is something around 63.63 while in real the exchange rate is around 65.1.Can I know the reason why there is a huge difference.I don't expect such a huge difference in the exchange rate. Because this is not fare. You're charging $0.99 in transferring the amount and above that there is huge difference in the exchange rate.
What you consider to be "the real rate" is the mid market rate and not available to retail customers.
Banks are not charities, they charge for performing services and sell at a higher rate than they buy at,just like any shop sells goods for more than they buy them at.
Upwork sends US Dollars to the bank, the banks then do everything afterwards.
You can read about what a mid-market rate is here.
The rates you sees are not transactional rates. Instead, they are mid-market rates derived from the mid-point between the "buy" and "sell" transactional rates from global currency markets. Information services always list the mid-market rate because it indicates the value of a currency that is not weighted towards buying or selling. Consumer clients or small to medium sized businesses cannot access these rates.
Transactional ("Buy" and "sell") rates include overheads and profit margins that are independently set by foreign exchange providers; their rates can vary a lot and will differ from the mid-market rate.
So then why is upwork charging $0.99 when transferring money to bank. This is not fair I guess. We need to pay heavy charges just to transfer our hard earned money to our bank accounts. I guess this is the reason why the payments through cryptocurrency will disrupt the market. You need to pay heavy intermediary charges.
Why don't you ask your bank how much they will charge you to send money abroad? International transfers cost money and the currency exchage difference is on top of that.
It means I have to pay $0.99 to upwork to transfer my money, then a difference of around $10 less I'll receive and then my bank will charge me money. I mean I'll pay around 8% of my money just in transferring it to bank. Don't worry all these chagres will be eliminated soon else these all banks will be bankrupted in the coming days, since the application of Blockchain is evolving.
@Prateek S wrote:
Don't worry all these chagres will be eliminated soon else these all banks will be bankrupted in the coming days, since the application of Blockchain is evolving.
Nah....those banks have very very smart people working for them. And they wouldn't want to lose their very very high salary.
The best thing for you is to build in those costs in your bid. Calculate your net after taxes, fees and other stuff and see if it worthwhile for you to work for that amount.
How do you come up with 8%?....the exchange spread is only about 2 - 2.5% and that is pretty good.
You have to make best out of available systems. In case you are worried too much about transactional charges, you can opt for direct USD transfer to your bank. In this case you will get actual market rates decided by your Indian bank. But remember there is a fee/charge of $30 for each transaction. To give you an idea about today's exchange rates from HDFC bank (look for: T.T. Buying (Inw Rem))
I'm sorry to learn you feel this way, Syed.
Note that 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.