Currency Conversion Rates: Are UK Freelancers Experiencing Losses?

[mihaiparaschiv]

Heyy all,

I wanted to bring up an issue I always face with currency conversion rates and see if anyone else in the UK has had a similar experience.

As a UK-based freelancer, I was disheartened to see a significant discrepancy in my earnings when converting USD to GBP. Just to give an example, I recently withdrew "$715" from Fiverr through PayPal. Instead of receiving the £583.74 I anticipated (based on the current exchange rate of 1 USD = 0.822359 GBP as of Sep 27, 2023), I was handed a mere £564.97. That's an unsettling loss of £18.77 from just one transaction.

It's concerning because, as freelancers, our margins can often be slim. We choose platforms like Fiverr for the convenience and assurance they offer, but these conversion losses, especially if consistent, can be detrimental to our earnings. Every penny we earn is a result of our hard work, and it feels unfair to lose a portion of it due to an unfavorable conversion rate.

I'm curious to know if other UK-based freelancers on Fiverr have faced similar discrepancies in their conversions. If so, it might be something we need to address collectively to ensure we're getting our full dues.

Looking forward to hearing your experiences and thoughts on this matter.

Best,
Mihai

 

 

[donnovan86]

It's not just UK. Freelancers from anywhere in the world outside of the US suffer from currency conversion. It is what it is. The only thing you can do is to increase prices, so they will cover any potential currency conversion loss.

[priyank_mod]

2 hours ago, mihaiparaschiv said:

Heyy all,

I wanted to bring up an issue I always face with currency conversion rates and see if anyone else in the UK has had a similar experience.

As a UK-based freelancer, I was disheartened to see a significant discrepancy in my earnings when converting USD to GBP. Just to give an example, I recently withdrew "$715" from Fiverr through PayPal. Instead of receiving the £583.74 I anticipated (based on the current exchange rate of 1 USD = 0.822359 GBP as of Sep 27, 2023), I was handed a mere £564.97. That's an unsettling loss of £18.77 from just one transaction.

It's concerning because, as freelancers, our margins can often be slim. We choose platforms like Fiverr for the convenience and assurance they offer, but these conversion losses, especially if consistent, can be detrimental to our earnings. Every penny we earn is a result of our hard work, and it feels unfair to lose a portion of it due to an unfavorable conversion rate.

I'm curious to know if other UK-based freelancers on Fiverr have faced similar discrepancies in their conversions. If so, it might be something we need to address collectively to ensure we're getting our full dues.

Looking forward to hearing your experiences and thoughts on this matter.

Best,
Mihai

 

 

 

Forex transfer or exchange business does not usually work on the 'precise exchange rate' which we see online. 

Personally, I consider an average difference of 2 to 2.5% while transferring because that's the margin our payment processing provider makes for facilitating the transfer besides the fixed fee (if they have any). This percentage might vary from region to region. In your case, it seems like the difference percentage is lil over 3%. 

To cross check - you can always check the difference between 'buying' and 'selling' rate for the currency from USD. Selling rate is usually on the lower side and payment service providers deploy that to calculate your precise remittance amount. 

[sam_makes_stuff]

Same here. Even Fiverr's stated £ doesn't even come out the same. Said I was owed 722 but in the end I got 666. Thing is, an outside currency exchange shows that I should have got 689. So which is it? Is Fiverr overstating and underpaying or is someone else getting a cut?

Edited October 31, 2023 by sam_makes_stuff