Exchange Rate

[fazeel280]

Hi,

I am from Pakistan, i withdrew a payment and got an exchange rate of 155.88 while today's conversion of USD to PKR is 167.65 that's almost 7% less while it should be around 1% or 2% at maximum.

I think this is not protection against volatility (as everything is going up since last two weeks) rather it's a steal from us, Upwork really needs to look into this matter or either change their banking partners.

I lost $30 in conversions, I paid $0.99 for withdrawal and I paid around $40 to Upwork in fees for this transaction, so i am short of $71 from this transaction.

To me, it's not acceptable, what do you guys think?

[joostdoevelaar]

While I appreciate the sentiment and I agree that the exchange rate is not always optimal, we don't have to use Upwork. It's a privately owned company that can do whatever it wants. Also saying that you short 71 dollars on a transaction when you very clearly accepted the Upwork fees and percentages beforehand seems strange to me.

Do I wish they would offer the actual exchange rate? Sure. But then again, PayPal does the same thing. This is to guard against volatility and again remember - this is a money-making company. They are not offering a free service. And its a service we don't have to use. 

[fazeel280]

Well, i did agree to Upwork fees and withdrawal fee, I certainly didn't agree to 7% stealing by their banking partner.

What you are saying is have no backing to support, you can't charge 7% in the name of volatility, PP doesn't do that much. Banks do this as well and what is the difference between Actual and banking exchange rates? 1 or a MAXIMUM of 2% not more than that. 

[g_vasilevski]

Hi Muhammad,

I understand your frustration with this and would like to confirm 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.

[fazeel280]

Upwork doesn't control, correct!

Upwork can't control, incorrect!

Your banking partner is chosen by none other but YOU. You can bring this matter up with them or change them at any given point.

There are partners that offer way better rates! You can simply switch to them?

[fazeel280]

No one from upwork bothered to respond after an eye opening statement from me over 8 months ago.

The situation is pretty much the same while I am writing this which means upwork simply doesn't care about this!

If this continued the way it is right now, i can see a picture where upwork would be advertising and begging people to sign up on their platform cause we (at least me) can't keep losing a good chunk of money because upwork simply don't want to look into sick practices. 

[petra_r]

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Muhammad F wrote:

i can see a picture where upwork would be advertising and begging people to sign up on their platform 

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You can? At a time where Upwork is drowning in freelancers and turning most down? 

If you don't like the exchange rate, you can use a different withdrawal method. That's what I do.

You're also free to establsh a US Dollar account and withdraw via wire transfer (at $ 30) - that way you can exchange at local rates if you find them better.

[fazeel280]

It appears you aren't very familiar with limitations freelancers of different countries have, we don't have many options and THANKS to upwork for that too!

And yes, i can see that picture, it's becoming crowded nowadays but those are newbies who are desperate for jobs 🙂 People who spent a fair amount of time here are leaving for other platforms and if you didn't know that, read different discussion forums and you will know. 

[markofjohnson]

Hey saw you post when I was figuring out how freelancers outside USA have to deal with exchange rates. Personally I've had success with Transferwise.com for USA<-->UK remitence. I checked, and they support PKR. Can you withdraw USD from upwork into transferwise and then use transferwise exchange to your bank in PKR? Below is an example of their fees, how does that compare for your case?

[markofjohnson]

Hmm not sure this case could work for you, because I don't think Transferwise will open an account for a Pakistan address, I'm not sure? But is there a remitence service you can use?

[fazeel280]

We can open transferwise account but we can't get a USD bank account details to receive funds too. I have Payoneer, I am going to try that and see how does that work for me.

[a8204fe7]

Listen, there is a straightforward way to deal with it. Try to use Payoneer as a payment method. You will only pay $1 extra as a withdrawal fee, and you will get a better exchange rate. I'm doing it personally, and it saves me a good amount of money. 

Thank you

[snausher]

Ibrahim will payoneer charge 3% fee when we transfer it to our payoneer account ?

[kay_u_]

Can you provide the details about how payoneer is a better option?

[elemten]

Hey did you find the answer?

[kay_u_]

Found out that payoneer is better because you can store your money in the form of dollars for as long as you want and then transfer it to jazzcash they give a better exchange rate. Hope this helps!

[jdee007]

I am using Payoneer for my 1st Withdrawal from Upwork and then I transfer to my JazzCash account at an exchange rate of $1 = 163 Pkr - Jazz Cash only takes 1 Pakistani Rupee as their commission but the problem is their withdraw limit is only 15,000 PKR / Day ($100 USD).  

If Jazz Cash increases their daily / monthly withdrawal limit then it's a Win-Win for us.  But Upwork must look into this matter in the first place.

[davidurdiales]

Hi,

I use Payoneer where I have an account in USD, and that's were I get the money from Upwork.

After Upwords sends the money free to the US account, I transfer it from Payonner to my Brazilian Bank account, in Brazilian Reais, so my Brazilian bank doesn't have to do any currency exchange.

For the whole process I am only charged the 2% that Payoneer charges for the withdraw in Brazilian Reais.

I think that's the way to go, and it helps to everyone here. Anyway, if anyone has a better (and cheaper) way to do it, I am all ears.

David

[ahmadalex87]

Payoner good

Example: My total funds $210 sent in Upwork direct contract.

First fee cut by Upwork direct contract 4% almost $8- remaining $202

Second fee- $2 fixed fee of Upwork on payoner withdrawal- remaining 200

Third fee- 2% fee of Payoneer for withdrawing money from payoner to jazz cash (any bank, i used jazz cash, jaz micro bank)- remaining $196.

$(8+2+4)= $14
I received $196 now,
Best thing is payoner exchange rate is incredibly good, which is almost equal to market dollar rate shown on Google.

[ihuzaifazahoor]

The same thing happened to me today. According to international reports, the dollar rate is 160 something dollars. The upwork rate is 154. This needs to be addressed. Would it be possible to do about this in some way?

[9133b592]

Yes I agress too that upwork should take at max 1-2% change in exchange rate and not play with the freelancers hard earned money first it takes 20% of our hard earned work then it cuts a $.99 fee which good knows what exchange rate is applied .Upwork Team please work on this issue and dont play with freelancers hard earned money .I purchased 20 connect for $3 today and I got to know that my card is charged at 532.80 PKR which makes an exchange rate of 1$ = 177.6 PKR what kind  of law is this please stop this wrong and rude attitude and provide and firm update on this and exchange rate issue that higher exchange rate is charged at time of purchase from upwork and lower is  chanrged at time of withdrawal

[iasghar05]

Yes it sounds strange that they use different rates while buying dollars they charge round 177 pkr and when giving us money the give roung 156. 

This is not acceptable. Upwrok is service provider and they will never change this until we all Pakistani's have to move to some other platform.

[kidroca]

I agree:

Right now there are options:

- Direct to Local Bank (My Currency)

- Direct to Local Bank (EUR)

There should be an option Direct to Local Bank (USD) My bank would offer a lot better exchange rate from USD to my currency.

I've just lost 50$ in exchange rates...

Seeing how long have this been discussed and not addressed I'm discouraged. 

I've went to see payoneer, but all I get is a blank page. Maybe I'll try paypal at least they offer the option to let my bank do the exchange rate

[petra_r]

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Peter V wrote:

There should be an option Direct to Local Bank (USD) My bank would offer a lot better exchange rate from USD to my currency.

---

"to local bank" is always in local currency. That's the whole point.

If you have a US Dollar account, you can use Wire transfer, which sends the money in US Dollars. It costs $30 but if you withdraw $700-$750 at a time it becomes profitable.

[kidroca]

"to local bank" is always in local currency. That's the whole point.

That's not true, I might have multiple currency accounts in my local bank, and also Upwork is already presenting me with more than one "local bank" options in different currencies

It's not a problem to send money to a local bank in a different currency - the bank will handle the conversion if you don't have a USD account

[petra_r]

---

Peter V wrote:

It's not a problem to send money to a local bank in a different currency - the bank will handle the conversion if you don't have a USD account

---

Then use Wire transfer, which is in US Dollars, and it's only a couple of countries (including yours) where withdrawing in more than one currency as "direct to local bank" is even possible. Alternatively, use PayPal with a Dollar balance, then send the money from PayPal to your bank in Dollars.

[kidroca]

Thank you for the advice

I use a company banking account. I prefer the money transfered there directly for acountting purposes.

My only option seems to be a wire transfer costing me 30$ at a time (monthly). For comparison - my monthly bank account maintenance fee is about 10$ 🙂 and it allows for a few wire transfers free of charge or at a reduced cost.

It's similar for US clients I've worked outside of Upwork. I would get paid with less than 10$ worth of charges/fees

I would sometimes get paid over the wire, but even if I have to be charged for the wire transfer it's never been more than 20$ 

I somehow though Upwork would deal with this way more cost effectively for it's clients

[navidzafar]

There is a huge difference in Buying & Selling rates through Upwork as opposed to Open Market Rates or even Inter Bank Transfer Rates

Now a days on Upwork:

Buying rate is about PKR 177 = USD 1

Selling rate is about PKR 154 = USD 1

Difference of PKR 23 and this is REALLY HUGE, not fair by any means.

As opposed to Upwork in Open Market and Inter Bank:

$1 = 162 - 164 Not more that 2 Rupees.

There should be an efficient and more ecnomical way of doing these transactions.

[kashif_flavio]

Hello Muhammad -

I am also from Pakistan and was facing the same issue. The solution is to open a dollar currency account in Pakistan and withdraw funds in Dollar, then you convert your dollars from any money exchange with the actual exchange rate.

Thanks

Kashif Raza

[nemat22]

I'm from Pakistan please can you tell me how can I open a dollar account?

[numan-javid]

I got a $ account in meezan, had a wire transfer, and the mezan head offfice says, "This transaction is from a business account so you need a business account to withdraw in $ otherwise we will convert on conversion rate and you will get PKR. (a govt rule)"

So because of the limitations I simply do wire transfer to PKR account.

[ahmadalex87]

Hi,
I agree with you,

But i think one comparatively better alternative is that use payoner as with drawl method, it is present in Upwork method i personally used, Upwork cut 2% withdrawal fee and then payoner fee is also 2% but exchange rate is mire than good. Mean almost according to market present rate

Example: My total funds $210 sent in Upwork direct contract.

First fee cut by Upwork direct contract 4% almost $8- remaining $202

Second fee- $2 fixed fee of Upwork on payoner withdrawal- remaining 200

Third fee- 2% fee of Payoneer for withdrawing money from payoner to jazz cash (any bank, i used jazz cash, jaz micro bank)- remaining $196.

$(8+2+4)= $14
I received $196 now,
Best thing is payoner exchange rate is incredibly good, which is almost equal to market dollar rate shown on Google.

[khanhammad_u]

I would recommend you to use wire transfer if you have amount above 500$. When you compare 30$ Fee with the overall exchange loss - you would notice that the difference is almost equal. 

The benefit of getting payments in US$ is that it is a stable currency and provides kind of currency hedging against depleting PKR.

[fred-bellani]

Dear Upwork,

you're a wonderful platform, allowing millions of people change and improve their lives. You seriously changed how the world works, and we admire you for this.

We stay with you.

But please, do something in order to fix exchange rates to what they really are, today.

Thank you,
freelancers

[ce1ee138]

Yes I am totally agree with you.