Different ( and lower) interbank exchange rate on Upwork

[nesrinecharf]

Hi, thank you for responding to my question

I would really love to have a non-generic answer.

I am really frustrated with the disadvantegeous exchange rate uowork is using, as shown on UpWork, today's conversion rate is of 2,73 from USD to TND ( my local currency) whereas the current rate is of 2,85 and it is really a big diffrence, especially if you're withdrawing an important amount, and with the fees we are already charged.... 

Where can I find the exchange rate UpWork is using ( other than on the upwork platform) ?

I am really disappointed. Can anything be done about it ? Is there a better payment method that won't make me lose that much money? This question seems to be a reccurent one and it seems like nothing has changed or can be done about it.. 

Thank you .

[g_vasilevski]

Hi Nesrine,

I understand your frustration with this and would like to clarify 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. Thank you.

[wlyonsatl]

Nesrine,

I know this is no comfort to you, but the exchange rates listed on public sources on the Internet are bank-to-bank ("interbank") wholesale rates for very large transactions well beyond the average person's needs. As a result, like any wholesale pricing, these exchange rates are "better" than a small company or a person in the street will find available to them for smaller transactions.

To make profits themselves, the bank(s) companies use to make payments worldwide add a bit of profit for themselves when they charge companies for foreign exchange services, which makes their exchange rates more expensive for Upwork and Upwork's users.

An exception is the exchange rate used when settling credit card purchases outside a person's home market. The global credit card companies, which transact using many millions of US$ and other currencies every day, typically get better exchange rates than consumers can get on their own. They pass some of those savings on to their credit card customers.

Even as an ex-international banker, I never saw public information about consumer exchange rates, other than at the currency exchange kiosks in every tourist city worldwide (which add their own other hidden charges, especially when they claim they don't charge "commissions.")

Some companies, which may include Upwork, also add some margin of their own when exchanging money for transactions for their customers, which takes the effective exchange rate even further way from the wholesale rates banks charge one another.