Laszlo, my understanding is that it is the Upwork's bank which decides and applies the conversion rate, the same way your bank would if you were sending money to me.
Usually banks update their conversion rates daily.
Rene, thanks, but I'd like to get official confirmation on this and the actual rates. Which either means the markup percentage on the interbank rates or a link that shows the actual rates. Of course it changes several times a day. You can't do anything about it. But the markup matters a lot.
My bank (just like every bank) publishes its rates. I'd like to know the rates that Upwork uses, that's it.
If you set up Direct to Local Bank transfer as your payment method, you'll be able to click "Get Paid Now" at any time and select your local bank account to see the last used conversion rate for your currency. Unfortunately, Upwork can only provide information about the most recent exchange rate used by the bank and not the actual rate that will be used at the time of the transfer since it fluctuates several times throughout the day.
What does 'last used' mean here? The last rate that was offered by Up work's bank? Or the rate used for my last withdrawal? Or the last rate used for anyone for the given currency? The latter is pretty good. Actually, any rate is good as long as it has a timestamp.
As I expressed above, I understand that rates fluctuate during the day. Nobody is really concerned about that except for FX daytraders. That's something you have no influence over. What we are concerned about is the markup/margin applied on top. Pretty simple question, and if Upwork has the data (even if it's just informational because they really don't have any other way to know it, other than doing an actual transaction, which I highly doubt) they should just publish it. Just as my bank does.
I'm still eager to know the actual margin.
You use transfast. If I go to transfast site right now, it shows me USD to PKR conversion rate is 117.34 where as on upwork it shows 113.9 PKR. Its very big difference , your rates not even matches Transfast.
When it was Elance, I choose to pay $25 to Elance and receive USD in my account and then my account was converting to local currenct with bank rate an that was much much better then this.
I'm also considering to stop working on Upwork since I carefully reviewed the fees
"Note that the difference in exchange rates is not something Upwork can control"
Sure, but working with exchange rates should not be Upwork's business. Upwork can perfectly send a USD payment to a non-USD account, so the conversion rate will be determined by the receiver's bank and exchange-related fees are paid by the receiver as well. I'm sure the vast majority of EU banks would charge less than what Upwork does.
Some EU banks (eg Revolut) provide zero-fee exchanges on USD payments. Interestingly, to receive USD payments on a EU bank account, Upwork charges $30.
I've been in the same situation of asking why. This is business upwork exchange rate used is far different from everywhere I check, and as upwork demands transparency, so should they be more when it comes to finances.
If upwork tells me processing fee is $1 dollar, then it should be $1 and there shouldn't be any hidden charges.
In fact, right under your bank account upwork states their last exchange rate and that's always lower than what you get everywhere.
There should never be a situation where people must be forced to accept conditions whether or not it's wrong and feel handicapped because upwork controls their account. That will be emotional, mental and transactional slavery.
It lies upon upwork for the benefit of the doubt to state where they pull their exchange rate from.
I'm sure so many people feel intimidated by this but are forced to accept it cos master controls the show.
I read someone saying upwork makes money. I can never understand that. Why?
Cos upwork makes money on the services we provide and upwork is not there if we're not. The 20% commission is what upwork I know make money from, so why find another way to make money on the green earnings afterwards.
If there's a clear and genuine reason, then that's okay. Without that, this is subject to legal spectacles.
When I convert us to cad, i knock some dollars off the calculated amount showing and I'm using pretty bang on.
I used to think I should get that exact amount I see, but I learned that the banks have to make something off us poor schleps somehow. loll.
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