In Spec - Payment Methods Choice and Self-Service Withdrawal

What is it?

We have been telling you for quite some time that we are working hard on improving our payment system. Well, we are getting close.

Payment Methods Choice gives providers the choice of how to receive payment from oDesk, as well as a self-service way to manage their payment account information.

The new options will be:

• The oDesk Debit MasterCard (more information on this soon)
• Moneybookers
• Wire Transfer
• ACH (for US bank account holders only)

With Self-Service Withdrawal, we are drastically reducing the time providers have to wait to get paid. There will be no more monthly pay period. Instead, each week, once a Buyer is billed, the funds are credited to the provider's account balance. Thereafter, providers can withdraw their available balance whenever they want, via the payment method of their choice. 

Why are we doing this?

We have been gathering provider input for several months now, including a major provider survey in December. The overwhelming feedback we've received was that our payment lacked two things: (1) choice of payment method, and (2) frequency of payment.

These features aim to give providers much greater control over how to receive their earnings. Specifically, the oDesk Debit MasterCard is faster and less expensive than Moneybookers in most cases, with superior exchange rates, very high limits and no incoming bank fees. It can also be used as a credit card at retail stores and online. We will be sharing much more information about the oDesk Debit MasterCard soon.

Is there a catch?

The catch is that with the additional choice of methods and frequency of payments, we unfortunately will no longer be able to subsidize third-party payment fees. We will pass these transaction fees to providers at cost, and you will be able to decide how and how often to withdraw funds. You only pay a fee when you request a withdrawal.

Except for wire transfers, the fees are very low ($1 to $2 per withdrawal). For example, a provider who currently uses Moneybookers and sticks with monthly withdrawal will pay $1.00 per month. If he chooses to withdraw more frequently, he will pay $1.00 for the convenience of faster payment. With the oDesk MasterCard, each withdrawal (card "load") costs $2.00, but the net fees are, in most cases, lower than Moneybookers, sometimes significantly.

What will it look like?

Here is how it might look:

Payment Methods Choice

Self-Service Withdrawal

We want to get this right, so please let us know what you think.

Michael Levinson
Senior Product Manager
oDesk

Vote Result

Score: 10.0, Votes: 4