Current Exchange Rate and Upwork Exchange Rate is Different at the time of Withdraw in INDIA

[hemantpawale]

Hi Team,

I want to notice at the time of Withdraw amount from Upwork Wallet to Bank Account in INDIA.  Current Currency Rate  $ 1 = 71.14 INR.  but at the time of withdrawing amount in  "Get Paid Now". Currency Rate is Different that is "69.54". why it's different from current rate.

[VladimirG]

Hi Hemant,

The currency conversion will be performed by Upwork's banking partner at the time the funds are sent to you. While it's not possible to show the real-time conversion rate, you can check the last exchange rate used by Upwork's banking partner for your currency on the manual withdrawal form. 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.

[rayahray]

Hello, I just wanted to know why is it that when the USD to INr rates are 76 to a dollar, upwork/ banking partners are only converting at 73 to a dollar? I mean this isn't a one or two time thing, and I do understand that exchange rate at the time of transaction is what is valid. But considering the USD-INR rate has CONSISTENTLY been above 75 for the past month, this still doesn't seem to reflect in your banking partners or your own exchange rate! Can someone please explain why Upwork/partners is doing this?

[VladimirG]

Hi Nitish,

Please check my previous response on this thread regarding the factors affecting the conversation process. Regarding the comparison you're making based on the screenshots you shared, please note that online calculators don't 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.

[rayahray]

Thanks for the prompt reply Vladimir! Appreciate it 🙂 quick question, can you tell me what the mark up percentage/amount is?

[petra_r]

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Nitish B wrote:
Thanks for the prompt reply Vladimir! Appreciate it 🙂 quick question, can you tell me what the mark up percentage/amount is?

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You can work that out yourself by looking at the difference between the interbank rate and what you are given by the banks.

Personally I find that PayPal and Payoneer both offer better rates.

[rayahray]

Thanks Petra! I'll do that this time and certainly look at the other options u mentioned 👍🏼

[ahmadopera]

This is just a big lie!!
Dollar to Naira has been up to 360 for long, but it seems that Upwork is not yet tired of robbing us. You charge for transactions, connects, contract commissions and all and yet, you aren't tired yet. Please consider being right for once. This issue could be rectified for $100 if you post it on your own platform.

[44fee874]

Change your bank omg 

[rancyy]

I am so I'm pleased right now. When buying connect on Upwork, $1 is equivalent to 430 in naira plus. But during withdrawal,$1 is barely up to 361 in naira. Please why is it so?

[bilsim]

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Ijeoma M wrote:
I am so I'm pleased right now. When buying connect on Upwork, $1 is equivalent to 430 in naira plus. But during withdrawal,$1 is barely up to 361 in naira. Please why is it so?

It's because buying and selling currency rate is always different?

Consider buying connects from your available Upwork $US funds.

[59da55f1]

Thanks

[03c3eec3]

I have the same problem,

After a consult with my bank, they said I have to consult my agent to not set the rate from your end and allow my bank to set a buy rate. Kindly share your opinion.

Thanks,

Ronak Amlani

**Edited for Community Guidelines** 

[g_vasilevski]

Hi Ronak,

At the moment we don't have this option. However, thank you for your feedback I will share it with our team.

[03c3eec3]

Sure, please work on it ASAP, because it's a giant lost we
freelancer/agency getting now a days.

[rimsha_sannu]

Hi Ronak, 

Did you find any solution yet?

[johnblignaut]

The perceived difference in the exchange rate has been creating distrust in UpWork for a long time. Perhaps UpWork should be more transparent about this to help protect its reputation. For a start, can you tell them who UpWork's banking partner is? That way, they can check the bank's exchange rate and forex fees for themselves.

[g_vasilevski]

Hi John,

While we can't share additional information about our banking partners, I would like to confirm that the exchange rate that you will receive at the moment of your withdrawal is listed on your confirmation email. 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.

[e41ceb5d]

Hi vladimir

 I have a Doller RFC account in my country i don't need an exchange rate from Upwork. I have a dollar account in my country so i need to deposit only doller to my account

how to cancel the up work exchange

[petra_r]

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Rajeevkaran K wrote:

 I have a Doller RFC account in my country i don't need an exchange rate from Upwork. I have a dollar account in my country so i need to deposit only doller to my account

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You would have to use Wire Transfer to withdraw to a Dollar account, and that costs $30 per withdrawal. It's worth it if you withdraw around $700 or more at a time.

[e41ceb5d]

Hello Petra
Thanks for the Reply,

Please take small consideration, 30 Dollars is huge money from my end. i opened an RFC account due to these exchange issues

and I am from Srilanka, Can I Cancel this Exchange rate From upworks. So it will be the Doller so I can Transfer to my Local RFC account as same Direct local bank(USD)

and i cant use Wired transfer its seems expensive

[petra_r]

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Rajeevkaran K wrote:

Can I Cancel this Exchange rate From upworks. So it will be the Doller so I can Transfer to my Local RFC account as same Direct local bank(USD)

and i cant use Wired transfer its seems expensive

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That isn't possible. "Direct to local bank" is always, and can only be, in local currency. That is how the system works. If you withdrew via "direct to local bank" to a Dollar account, the withdrawal would either fail, or you would end up paying **TWO** currency exchange rates. Once from Dollars to your local currency and then again to Dollars.

Please also remember that the cost to withdraw is NOT just the exchange rate. It costs money to transfer money between continents and currencies, and banks charge for this one way or the other. Either via a fee (wire transfer) or via the exchange rate (direct to local bank).

Banks are not charities. They don't move your money around the globe for free.

[kidroca]

The system only works that way because it's convenient for Upwork, even though it's inconvenient for its clients 

It's not like Upwork has a bank account in every country in the local currency

I guess Upwork is sending USD to their 3rd party contract doing the actual transfer and I don't see what's the technical problem with exposing a USD to USD local option 

What I do so far is to withdraw as less as possible and use the wire transfer option, paying the 30$ is cheaper. But I don't rely so much on the money I make from Upwork

Rajeevkaran I hope you start to make enough money so that you can just use the Wire Transfer 

[petra_r]

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Peter V wrote:

It's not like Upwork has a bank account in every country in the local currency

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Exactly. Hence "direct to local bank" which is via banking partners which DO (have an account in the relevant country)

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Peter V wrote:

I guess Upwork is sending USD to their 3rd party contract doing the actual transfer and I don't see what's the technical problem with exposing a USD to USD local option 

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The problem would be that the money would have to be exchanged from US dollars to the OPs local currency and then back into US dollars, so the OP would pay the costs to exchange the money twice.

[kidroca]

This banking partner being an entity dealing with finances would surely have accounts for the frequently used currencies such as USD for the country

so a transaction like Upwork USD -> partner USD -> client USD can happen 

Ok let's assume the banking partner doesn't have a USD account in the country

How much would it cost to maintain a USD account for such a partner?

It might not make sense if only one person desires to receive payments in USD, but what about if 1000 people from that country would like to receive they're profits from Upwork in USD surely this outhweights losses due to maintaining an additional USD account

And if this indeed is incurring losses for the banking partner they can maybe increase the fixed fee for that USD to USD option, explaining the increased fee is to maintain the additional USD account they need to maintain 

[kidroca]

The root problem for most of us, opting for a USD to USD transaction is the unfair exchange rate of the alternative

I would be happy to receive money in my local currency if I wasn't getting a much better rate (from a local bank) using the Wire Transfer

[petra_r]

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Peter V wrote:

And if this indeed is incurring losses for the banking partner they can maybe increase the fixed fee for that USD to USD option, explaining the increased fee is to maintain the additional USD account they need to maintain 

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That's what wire transfer is there for. 

[rayahray]

You could create a virtual ACH account with Payoneer and then link it to your RFC account back home. Upwork to ACH is free, and you have to pay Payoneer's withdrawal fees to your account, but at least this option allows you to hold your money in USD (assuming your country laws allows foreign currency accounts for residents).

[isaiah_kinyanjui]

Barefaced lie, every time a freelancer asks this question, this is the response that is usually thrown at us, can't you see we are all complaining of the same issue and launch an investigation?it's okay though!

[dew_wickz]

Hi Vladimir!

I'm from Sri Lanka, and our rupee depreciating everyday, though upwork shows 338 , it is like the exchange rate from months ago. Our exchange rate is around 365, and it's a huge difference. Could you please look into that matter. Thanks.

[AndreaG]

Hi Dewmini, for Local Funds Transfers, Upwork is able to offer very competitive exchange rates through our bank, often better than the rate offered by most third-party payment vendors. Please keep in mind you can also use any other of the payment methods available to you, learn more here.

[humfhrey]

It is not competitive at all. 

[84798706]

It is also quite different in my country. Maybe Upwork should change its banking partners.

[earn-more]

Really Helpful!

🙂Thank you so much.........

[nayab-s]

this is the PKR rate right now, according to XE. And here's what I got by UpWork when I've withdrawn a few minutes ago:

I was displayed a rate of 216, and this hasn't been the USD to PKR rate for over a week in the market, it's been pretty stable at around "225." 

Thanks for explaining Vladimir, but by the numbers and facts, that's definitely not the case and I'm also looking to receive some transparency on this matter.

[759e32fa]

Hi Nayab,

Thank you for reaching out. 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 markup 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.

Please see this article for more information.

[44fee874]

my usd to bdt rate is 114 and has been 116 120 and over 112 at all times. I have been getting 102 per dollar and now its 104. It is stealing. 

[4d556d7b]

The rate is lower because the banking partner is exposed to price risk and would otherwise not want to engage in a transaction like that - understandable.

However, my own bank does offer zero-fee conversion, so why doesn't Upwork just send me dollars? Or at least give me the option? I didn't ask for this conversion service.

[44fee874]

I repeat, you are wrong. The last convertion rate on upwork is the rate of 3-4 years ago lol. 

[vaneet_garg]

Hello Hemant,

I am not sure you got an answere already or not. So just to being ans your question.

Upwork does not have any static or specific exchange rate. It changed on daily bases as the currency exchange rate changed. So it only show the last exchange rate while doing the transfer.

Even the upwork transfer take 1-2 working days. So if exchange rate can vary after 1 or 2 rate for same transaction too.

So i suggest, always check first last exchange rate and check current rate on google. Then you can perdict expected exchange rate.

I hope it will be helpfull. 

Thanks.