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Very Low Exchange Rate

lilita35
Active Member
Liliana R Member Since: Apr 27, 2016
11 of 34

Hi Guys,

 

Having a look at your posts, I am very disappointed with Upwork rates anyways...I have done the exercise every time I am paid and the difference between the rate paid by Upwork and the official rate is always $100 COP (100 Pesos) which means a lot when you convert 600 USD for example...I get paid much lower than I should.

 

Example:

 

  • Exchange rate on 04-19-2017 00:20 UTC: ***2697.9392 COP/USD*** (UPWORK RATE) - OFFICIAL RATE:  2,837.90

You see? Does this happen the same with you?

 

As we do not have Paypal here in Colombia or another method to withdraw money that option is the only one we can use but the paid rate is not fair at all.

 

Any comments or advices?

 

Thank you guys

 

Liliana

aocumen
Moderator
Avery O Moderator Member Since: Nov 23, 2015
12 of 34

Hi Liliana, 

 

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


~ Avery
Upwork
lilita35
Active Member
Liliana R Member Since: Apr 27, 2016
13 of 34

Hi,

 

Yes, I already know that, that was the answer I received when I claimed that.

 

You say it is something that you cannot control, I got in touch with your bank and they say it is not their fault.

 

Despite, as you said, the rate fluctuates day by day, the difference between your bank rate and the official rate is very big for Colombian Pesos ALWAYS when I withdraw my money, it is not something that happens rarely, so you are not just getting the 0.99 Fee, you are getting more because of the low exchange rate.

 

I used to use Payoneer but they are not with Upwork anymore, Paypal does not work here in Colombia and Payoneer just works with a debit card here in my country and I do not like that method, as there are no more options for me, I HAVE TO remain using the Direct to Local Bank with your or your bank unfair rate.

 

Thanks,

 

Liliana.

visualcomando
Active Member
Pablo V Member Since: Mar 30, 2017
14 of 34

Hi Liliana

I Really understand you... I have been really mad about this Currency conversion "Trick" all this corporations use.

 

2871 Official rate
2711 Upwork rate

 

160 Difference = 160 COP are 6 CENTS...... they take 6 Cents per 1 USD this is 6%

 

1000 USD - 6% = 60 USD... you just lost 60 USD this is a LOT of money even in the US no one wants to loose 60 USD....


Upwork is very Unfair... I didnt notice before this extreme conversion rate till you do the math

 

I dont know if moderators and support are not allowed here to simply acknowledge they take a plain 6% Fee for the bank transaction and everything would be easier

 


This is why Payoneer is Better, cause they have a FIXED CURRENCY CONVERSION RATE OF 3.5% at least this way you know exactly how much money it is each time it will be always 35 USD per 1000 USD and is LITERALLY THE HALF of what Upwork is taking away

 

Payoneer takes 3.5% Currency Conversion + 2.50 USD instant withdrawal + 3.15 USD for ATM Withdrawal


Payoneer TOTAL 5.65 USD + 3.5% for each Transaction -- 40 USD FEE per 1000 USD /// Money instantly available 

 

Upwork takes 0.99 USD + 6% For each Transaction -- 61 USD FEE per 1000 USD /// + lots of days to get the money

 


So Payoneer is simply the best option cause it takes only the half of what Upwork takes
AND you have the money immediately. Dont have to wait a lot of days like Upwork method

 

I think you should really reconsider Payoneer

 

It will be really hard to get that money to Colombia without loosing 3-4%

 


You can use PayPal in Colombia with Davivienda Bank: http://www.daviviendapaypal.com
but im pretty sure they charge a lot cause they use IVA Colombian Tax, i dont know how much IVA apply but you end up paying to Colombian government a lot so im sure this is not a good option

 

Even Amazon scams people with currency conversion dirty Trick you could end paying up to 8% more for the same item if you choose their Currency Conversion System instead of paying in USD and let your local bank do the conversion. Banks use the official exchange rate

 

Every major company use this "trick" to fool people and take more money... too bad to see**Edited for Community Guidelines**

 

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
15 of 34

@Pablo V wrote:

Hi Liliana

I Really understand you... I have been really mad about this Currency conversion "Trick" all this corporations use.

 

2871 Official rate
2711 Upwork rate


 2871 is NOT a retail rate. It is the mid-market rate, in other words it is the median between the rates banks buy a currency at and sell the same currency at. It is not an exchange rate you would get at any bank in the universe.

 

Banks charge money to exchange currencies. It is not Upwork, Upwork pays in US Dollars. Exchange rates happen at the bank-level.

 

If you go to a bank with $ 1000 US in cash, you will receive considerably LESS than the mid market rate in your local currency.

 

If you go to a bank to BUY $ 1000 US in cash you will pay considerably MORE than the mid market rate in your local currency.

 

When you go into a shop, do you expect to pay the same price for your can of cola as the shop's owner paid for it? Of course not. Everything that is being sold and bought has a profit margin. Even currencies. And Payoneer does not exchange at anywhere near the mid-market rate either, nor does PayPal.

 

 

visualcomando
Active Member
Pablo V Member Since: Mar 30, 2017
16 of 34

Thats Amazing PETRA R you discovered water is wet.... Amazing Thanks!!

 

you totally misunderstand what i said..... i said you cant get that money to colombia without loosing 3-4% unless its bitcoin

 

I understand everyone needs to make money

 

 

you totally miss the point that is UPWORK TAKES 6% WHILE PAYONEER ONLY TAKES 3.5%

 

why Upwork dont send the transaction in USD and let local banks make the conversion??

 

my local bank has always been really fair taking even less than just 2% thats a big difference with Upwork 6%

 

i put those numbers there just to make the math to proof upwork is taking 6% nothing more

 

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
17 of 34

@Pablo V wrote:

Thats Amazing PETRA R you discovered water is wet.... Amazing Thanks!!

 

you totally misunderstand what i said..... i said you cant get that money to colombia without loosing 3-4% unless its bitcoin

 

I understand everyone needs to make money

 

 

you totally miss the point that is UPWORK TAKES 6% WHILE PAYONEER ONLY TAKES 3.5%

 



 You are not only terribly rude, you are also not understanding Payoneer's currency fees at all.

 

So before you start attacking quite so rudely, try and understand what you are talking about.

 


"When making transactions with your Payoneer card, the currency conversion rate is based on the rates used by MasterCard; you can use the MasterCard Currency Conversion Tool for an estimate.  In addition, Payoneer applies a currency conversion charge of up to 3.5%. "

 

In other words: Mastercard takes a chunk of your money in the exchange rate, then Payoneer takes an additional up to 3.5%, PLUS the load fee PLUS the withdrawal fee PLUS the ATM fee PLUS the monthly / yearly account fees.

 

The other part you missed is that you can't withdraw $ 1000 of cash in one ATM transaction anyway, so you pay the ATM fee for several withdrawals to get your $ 1000.

 

I love my Payoneer card, but it is NOT the cheap option you make it out to be.

 

visualcomando
Active Member
Pablo V Member Since: Mar 30, 2017
18 of 34

what you said just confirm what i mean about Payoneer using a FIXED 3.5% FEE FOR CURRENCY CONVERSION

 

PAYONEER ALWAYS RESPECTS THIS 3.5% taken from the OFFICIAL Exchange rate

 

This proof my point completely that payoneer only takes 3.5% FIXED

 

While Upwork Exchange rate fluctuate a lot, today was 6%.... tomorrow could be 5% or 7% because its not a fixed exchange rate as payoneer

 

PAYONEER WILL NEVER TAKE MORE THAN 4% PER 1000 USD 

 

IF I WITHDRAWAL 1000 USD WITH UPWORK RIGHT NOW..... UPWORK WILL TAKE ABOUT 62 USD

 

thats why Upwork and you use this technique and complicated language to defend yourself in the fluctuating market, ive been trading currencies for years so i think i can say something about this, and i just even prove it with simple math, will not argue with you anymore anyway

 

Thanks!!

 

2017-04-25 copy.jpg

afifield
Community Guru
Amanda F Member Since: Aug 8, 2015
19 of 34

and paypal is the same way. i agree with petra here. it's the cost of doing business online anyways and you should always consider all this when you bid on projects. My paypal is converting the same amount as upworks last transaction rate from the previous month. 

 

if you want to complain about the rates of any currency conversion online, then just don't do work online or use what you prefer to use and compensate it into your rates if you feel it's that bad. 

visualcomando
Active Member
Pablo V Member Since: Mar 30, 2017
20 of 34

Payoneer have a LIVE EXCHANGE RATE on their ANDORID APP

you can see exactly at any moment the conversion from USD to COP

 

PAYONEER FEE STRUCTURE IS FIXED TO 3.5% no matter how much the Exchange rate of USD COP Fluctuate Payoneer will Simply always take 3.5%

 

Upwork use a different FEE STRUCTURE based on what you call "Last Upwork exchange rate 2693.9750 COP/USD"

 

So you can see big DIFFERENCES between Official Exchange rate and upwork exchange rate in small amount of time

 

This could be good cause if the currency suddenly falls Upwork will still need to pay me their ""Last Upwork exchange rate 2693.9750 COP/USD"" wich will be high

 

But this could be bad If currency goes Up is The Freelancers loosing because ""Last Upwork exchange rate 2693.9750 COP/USD"" will be very low

 

This is Upwork Playing with the Fluctuation market, Playing the currency game

 

its different from payoneer

 

I Really understand Upwork try to make more money from this Currency game

 

But anyway the Upwork Exchange Rate is Very Low....

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