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Exchange Rate Used By Upwork

y_bilal
Active Member
Yasir B Member Since: Nov 16, 2015
11 of 65

Hey all, can any one explain me why conversion of upwork is low because the rate of dollar to pkr in international market is $1 = 104.72 PKR but upwork conversion rate is $1 = 100.089 PKR approx . Why the upwork conversion rate is approx 4 PKR low 

kjscostello
Ace Contributor
Kieran C Member Since: Aug 21, 2015
12 of 65

The Upwork exchange rate is low (or high, depending on how you're looking at it) because they're making money from the conversion. It's more expensive than most providers, Paypal etc, so I'd say there must be about a 3.5% fee applied.

 

I'm not sure of the reasons for this. I do not know whether there are substantial costs associated with converting currencies in this format. My cyncial side, however, believes that it's simply because they know most freelancers will take the easier route and withdraw money straight to their bank accounts, if they can. Such individuals might also be not-so watchful when it comes to checking conversion rates, or not care about a couple of cents being lost on the dollar. 

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
13 of 65

It is not Upwork who are making money on the exchange rate,nit is the banks.

 

you can not use forex rates,those are mid market rates that are never used for retail transactions.

kjscostello
Ace Contributor
Kieran C Member Since: Aug 21, 2015
14 of 65

I realise that Petra.

 

I should provide a disclaimer to say I'm certainly no expert, so forgive the lack of understanding. However, if it's solely the bank's rates being used, why does the conversion take place pre-withdrawal? 

 

It's calculated on here, converted, and then sent to my bank. Does Upwork monitor bank conversion rates and then calculate? 

 

In the past, I've received what I thought to be better rates when sent money directly, bank-to-bank, in a different currency. I might have been incorrect in this, and hence the incorrect conclusion. 

 

EDIT: OK now I've read Vladimir's reply, which would explain the above. 

fakhariqbal
Active Member
Fakhar I Member Since: Aug 9, 2017
15 of 65

Upwork should use Western Union. Its gives exact exchnage rate same as cming on google.

 

Regards.

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
16 of 65

@Fakhar I wrote:

Upwork should use Western Union. Its gives exact exchnage rate same as cming on google.

 

Regards.


First of all Western Union is the choice of scammers worldwide, and secondly the exchange rate may be ok, but the fees are crippling. 

vladag
Community Manager
Vladimir G Community Manager Member Since: Oct 31, 2014
BEST ANSWER
17 of 65

Hi Shay,

 

Petra's reply is correct. 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.

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abgcreative
Active Member
Alvaro B Member Since: May 18, 2016
18 of 65

Hello Vladimir

 

About what you wrote:

...the difference in exchange rates is not something Upwork can control.

 

Ok, if that is the case, how come I get the same exchange rate in two different banks, in two different countries?

 

I have 2 bank accounts in two different countries (Im moving out from one of them) and to make the test, I sent $ to both of them to see the exchange rate:

 

1country - Spain:

Exchange rate on 06-01-2016 12:03 UTC: 0.8795 EUR/USD

 

2country- France:

Exchange rate on 06-01-2016 12:03 UTC: 0.8795 EUR/USD

arsalankhan85
Active Member
Arsalan K Member Since: Dec 17, 2015
19 of 65

Thanks for the answer, but the rate that i received at the end are almost $6 less

 

so that is a big margin. Smiley Very Happy 

atleta
Active Member
Laszlo M Member Since: Aug 29, 2017
20 of 65

Can you please be specific about the exchange rate used? A few options that are acceptable as answers (to avoid any confusion and wishy-wahsyness):

- a pointer to a page where anyone can check the current rate that you are using

- by naming the market or provider (bank, etc.) whose rates you are using

- by sharing the strategy/formula you are using to calculate your rate (e.g. 1% below the interbank rate)

 

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