Fiverr Payment Methods: How to Get Paid

As a freelancer, if you’ve ever searched for ways to earn online by offering your services and showing your talents, chances are you’ve come across Fiverr. Fiverr is basically an online marketplace where buyers, i.e. businesses, seek services from sellers, i.e. freelancers, offering a vast range of digital services. 

Clients usually choose from pre-defined service packages (gigs) and pay upfront. And until work is approved, payments from clients are securely held in escrow, ensuring protection for both parties. So, let’s look at the Fiverr payment options offered in India, so that you can choose the most suitable payout method for your needs. 

Step 1: Start receiving orders

The payment process on Fiverr differs when compared to its counterparts like Upwork. Rather than the traditional and complicated process of hiring, Fiverr lets clients book services they like instantly. Instead of paying you, a freelancer, directly, they pay Fiverr. 

Once the order is completed, 80% of the payment is sent to the freelancer’s Fiverr account, where the funds status is kept as “pending”, as Fiverr keeps a 20% fee. This marketplace format helps freelancers to start working quickly, eliminating the need for prolonged negotiations and contract agreements.  

Step 2: Wait for the funds to clear

Your funds will be held “pending” for 14 days. This prolonged waiting period for your funds to clear is to ensure client satisfaction. However, if you’re a Top-Rated Seller (TRS), Seller Plus Premium seller, or a PRO seller, you’ll only have a 7-day clearing period. So, it pays off to be a good seller! After this waiting period, funds will be ready for you to withdraw.

Fiverr also offers something called Early Payout. This option lets you withdraw your earnings before the clearance period is over. Your “Early Payout” eligibility will depend on your performance, sales history and compliance with the terms of service. Once you become eligible, monitor your earnings page closely, as the status may change.

Step 3: Set up your payment method

Before withdrawing money from Fiverr, you'll need to set up your payment method. Fiverr supports several payment options depending on your location, including PayPal, Fiverr Revenue Card, Payoneer, and bank transfer (US only).

Setting up your payment method involves navigating to the Earnings section, selecting Withdraw Balance, and following the instructions that pop up. 

Step 4: Withdraw your earnings

When you’re done with the above steps, choose the currency and withdrawal method. Withdrawals from Fiverr can be made in USD or converted to other currencies like GBP, EUR, etc. Keep in mind, however, that currency conversion fees and other additional charges will be levied accordingly.  

Withdrawals typically take 1-7 business days, depending on the method, with PayPal and Payoneer among the fastest. There is a withdrawal limit of $5,000 per 24 hours.

Additional considerations: There are some further points that a freelancer must keep in mind about getting paid on Fiverr:  

• Commission: Fiverr charges a flat 20% fee on every order you complete. So, if you earn $100, Fiverr keeps $20, and you get $80. These charges keep the platform running and secure. For any order above $500, Fiverr charges an additional 5% fee.

• No upfront fees for sellers: Buyers on Fiverr need to pay an upfront fee of 5.5% of the total order plus an additional $3 as “Small Order Fees” if the order price is under $100. But as a seller, you only pay fees after completing the order.

• Method change and withdrawal limits: If you change your withdrawal method, there is a mandatory 24-hour waiting period before you can withdraw again. Moreover, there is only one withdrawal allowed every 24 hours. The maximum amount per withdrawal is up to $5000 USD.

Fiverr offers freelancers a plethora of payout options to withdraw their earnings. You must weigh each option’s features, payout speed and regional availability. Let’s review some of the Fiverr payment options in India: 

1. PayPal: PayPal is the most renowned payout option available in most countries and is known for its quick payouts. It’s also easy to set up. 

• How it works: You have to link your PayPal account to Fiverr, then transfer earnings as soon as they become available.
• Withdrawal Time: 1-2 business days.
• Fees: A fixed fee (often around $1) plus a hefty currency conversion fee of around 3-4% depending on the country. 
• Availability: Global, with some restrictions. 

2. Payoneer: Payoneer is favored by international freelancers the most, because of its seamless transfers and lower fees

• How it works: As a Payoneer user, you’ll have three ways of receiving money through Fiverr: 
• Set up a Fiverr revenue card: With Payoneer Mastercard you can withdraw your earnings from a local ATM in your preferred currency, or use Payoneer’s exchange feature for better rates.
• Connect Payoneer with Fiverr: Withdraw money right into your Payoneer account. Earnings can be transferred to a Payoneer USD wallet and then withdrawn to a local bank account.
• Make a bank transfer through Payoneer: Payoneer can be used as an intermediary to facilitate bank transfers at lower fees than direct international bank transfers.
• Fees: Around $1-$3 per withdrawal (there’s a minimum withdrawal limit of $30), and up to a 2% exchange rate markup.
• Availability: Most countries, but the Revenue Card availability is region-dependent. 
• Fiverr Revenue Card is not available in India. 

3. Bank transfer / ACH / Direct deposit: This withdrawal method is mainly available for US sellers, and a few other countries. In this, Fiverr sends your earnings directly to your local bank account.

• How it works: Once your earnings are cleared, funds are sent straight to the local bank.
• Withdrawal Time: Usually takes 5-7 business days.
• Fees: Bank-dependent (can be 5-7% or a nominal flat fee). Fiverr itself charges little to none.
• Availability: Primarily for the US; limited or unavailable in most other countries. 

By default, Fiverr pays in USD. However, as an Indian freelancer, you need that money in INR. 

Both PayPal and Payoneer convert your money. But neither gives you the mid-market FX rate. Instead, these platforms add a hidden markup. This can be anywhere from 2% to 4%, like we saw in the section above. This means, if you’re earning $1,000 a month, you could lose around 3000-5000 INR simply because of conversion margins.

That’s why Xflow is a smarter alternative to these traditional Fiverr payment methods. 

• Xflow offers live mid-market forex rates with zero FX markup in addition to multi-currency support. It gives you transparent pricing and reduces transaction costs via local bank transfer methods. 

• With a plethora of other features and advantages like automated eFIRA to improve compliance, invoice tools, and API integration, Xflow is every freelancer’s cost-effective and flexible global payments solution. 

Beyond the currency conversion fees issue, a freelancer should also take notice of the Indian Income Tax and GST tax rules that apply. Here are some considerations that you must keep in mind when earning income on Fiverr:

1. Income Tax

If you’re earning more than 2.5 lakh INR in a financial year, you fall under the taxable bracket as per the old tax regime. You’ll be taxed according to the slabs under the new regime, whichever you choose.

If your total income (including Fiverr) crosses 10 lakh INR or more, you may also need to pay advance tax in installments across the year.

2. GST

Your Fiverr income will be treated as an export of service. So, if your freelance income exceeds 20 lakh INR annually, you’re required to register for GST. Even if you don’t earn more than 20 lakh INR, you can voluntarily register under GST earlier to claim input tax credit benefits and improve compliance. 

Have a look at this table where different Fiverr payment options are listed, along with their cost comparison and feature:

In order to exercise greater control over earnings, and not losing major part of it in conversion fees, here are some important tips for freelancers regarding international payments and choosing Fiverr payment options in India: 

• Opt for Fiverr payment methods that have lower currency conversion fees to maximize earnings.
• Choose payment services that offer faster settlements to improve cash flow.
• Ensure that the platform chosen offers compliance documents like eFIRA, to keep you in line with latest RBI and FEMA regulatory norms. 
• Take advantage of invoicing tools integrated with payment platforms to maintain professionalism and ease reconciliation.
• Consider security certifications of the payment options (ISO 27001, SOC2) to protect funds and data.
• Keep detailed financial records for compliance and tax reporting. 

Traditional Fiverr payment options in India often involve long holding periods, high currency conversion fees, and limited flexibility with currencies. As a freelancer, you shouldn’t have to deal with such delayed payouts and additional charges that undercut your true earnings. 

Xflow, as a modern payment solution, addresses these challenges. With us, you’ll benefit from mid-market FX rates with no hidden fees, next-day settlements, and bulk payout capabilities. The platform offers international receiving accounts that are freelancer-friendly and come with free eFIRA (Foreign Inward Remittance Advice), making it easier to keep track of payments and maintain proper records. 

We align our platform with the latest regulatory updates, which takes the hassle out of inward remittance documentation. Real-time tracking, shareable payment links, and invoice generation are some of the additional benefits of the platform. Sign up with Xflow today and grow your business with confidence.