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Elance can make wire transfer for 10$ , why odesk takes 30$ ?

Elance can make wire transfer for 10$ , why odesk takes 30$ ?

From Elance Website"$10.00 fee for the first wire transfer each calendar month and $25.00 for each additional wire transfer within the same calendar month."

First Odesk cuts 10% of provider Earning .For Guaranteed payment and other online services , its reasonable .Consider a provider uses PayPal now .Paypal cuts 4%+ Extras to receive funds .PayPal give very low currency conversion 1-2 RS less for each $ so its around another 4-5 %.So providers gets about 20% less than what buyers pay

Odesk is better than any other freelancing websites because of the guaranteed payment system .But to give 20% of earning for that security seems crazy.If this situation continues providers will start thinking about how to reduce this high percentage!

Odesk should at-least give one wiretransfer each calendar month at 10$ .500$ min for one transaction also fair.Since Elance can give that it would not be a big financial hassle for odesk

OR

Its time for odesk to think about new payment methods

Somebody wrote in the odesk forum
http://feedback.odesk.com/forums/26681-general/suggestions/598889-provide-options-to-indian-providers-to-withdraw-as?ref=title

Quote:

Provide facility for Cheque

If cheque transfer is feasible odesk can consider that too , if anyone knows more about that please share

I find this some days back ,SBI one of the biggest banks in India have branches is USA http://www.statebank.com/
If odesk take initiative for any payment methods with them they might get interested in that. 100K to 200K New bank accounts and millions in $ to INR transaction is not a small thing! and it growing everyday

I wish somebody from odesk management replies to this issue because No PayPal is better than PayPal with a high fees.Its seriously affects providers who have a monthly earning of 500$ or less

Vote Result

++++++----
Score: 6.1, Votes: 7
Surely you jest!

OK So eLance provides 1 wire transfer at 10.00 and the rest at 25. Let's look at what else they charge

A) Monthly membership fee (varies from 0 to 40 a month)
B) They take money from the providers as well as the buyers (i.e. 4-6% Service fee) and that is 6% always from provider if you're using the free account)
C) They limit your MONTHLY ability to bid on jobs based on what you are paying
1. Free: 10 2. $10/month: 25 3. $20/month: 40 4. $40/month: 60

D) All members are subject to Payment Processing Fee of 2.75% deducted by Credit Cards, PayPal, etc.
E) Paid members are prioritized in provider search results.

So before you brag about how good eLance is you should look at your facts.

Also another consideration is all banks charge different wire fees so some of this is dictated by bank charges.

Quote:
As an example of the cost, Bank Of America as of February 2010 charged $25 to send a wire and $12 to receive one within the US. For international transfer, it charged $35–$45 outgoing, $16 incoming.

And for Wells Fargo:
Fees for Wire Transfers range depending on factors that are listed on page 52 - they range from 10 to 35 dollars depending on what the transfers are.

Doreen

why should I ? :)

I am not discussing about rates of odesk ,Elance or any banks here.I have done researches about different freelancing websites so i clearly knows whats the rates. Its Off the topic

I am saying about need of a alternate payment system for Indian providers because of high PayPal fees in INDIA.From your words it looks like that you are saying that Elance takes lot of fees so they give wiretransfer at low rate as a compensation for that high fees Big smile ......... 40$+4% < 10% Wink .

You are from USA so you have the advantage of free ACH Transfer to your bank account. If they introduce a 8-10% cut to transfer your earning , what will you say then ?
Its not affecting you so its jest for you Sad ,but its problem for Indian providers who are starting in odesk and the ones who works in Administrative section jobs

No it doesn't matter

YOU were the one who stated "oDesk takes 10% PLUS charges 30.00". What I'm telling you is that the FEES are dependent on banks and it's not oDesk who decides that fee, it's the bank. So, it is not off topic. Fees for transfers are passed onto the person getting the money so why is that unreasonable? And, where do you get 8% to 10% that oDesk is charging for transfer???

Remember something: oDesk is US based. They can't lose money on transferring funds. So it's up to YOU in India to OFFER information on more cost effective transfer options. How can oDesk (being US Based) know what options are available?

and you might want to READ what eLance says - YOU are only paying 1/2 of their fee - the fees in reality are as much (and in most cases MORE) than oDesk because YOU and the BUYER are both paying fees.

Doreen

To clarify

Elance account with a paid membership is allowed one wire transfer withdrawal each calendar month free of charge from Elance. Any additional wire transfer withdrawal within one calendar month will be charged a $25.00

Elance members without a paid provider membership will be charged a $10.00 fee for the first wire transfer each calendar month and $25.00 for each additional wire transfer within the same calendar month.

Only the the provider is charged the 8.75% Elance fees and client/buyer is not charged anything unless you add it up in your bid proposal or if it is a featured job where a client pays a certain amount for his project to be displayed prominently on the job search page.

peace Smile

This is incorrect

From their own website in information for buyers:

Quote:
In addition, there is a one-time $10 account activation fee to setup an Employer account. Payment Processing: An additional 2.75% payment processing charge is collected by Elance to cover expenses incurred with third-party payment processors such as credit card companies and banks.

So the buyers are paying an additional 2.75% over what you are being charged.

Doreen

As far as I know

As far as I know because I've never been a buyer on any site thus not too knowledgable on the subject, it is a payment processing charge billed by credit card companies and banks for clients/buyers depositing funds like what payoneer/paypal, etc. billed providers for withdrawing funds.

peace! Smile

This is probably correct

But that makes the 8.25+2.75 11% so they do not offer lower fees for use. oDesk charges $1 for withdrawals to PayPal and as a buyer I don't pay a separate processing fee, it's included in the 10%.

This in effect is steep since CC processing companies generally (not always) do not charge more than 2% plus a typical maximum -charge per use- of about 20 cents.

Doreen

oDesk is only passing on the

oDesk is only passing on the fee our bank is charging. However, we are currently looking into options to reduce that fee for everyone.

That said, as infuriating as PayPal India's actions are, you are now in the same position as providers in the countries where PayPal is not available. If there are other money transfer options that are better in your country, please let us know! We really are interested in providing additional withdrawal methods - if the companies are willing to work with us and have a product that'll make a significant difference to our providers.

Webmoney and Western Union are both currently being investigated. Please follow those links to show your support for adding those options.

Edit: I missed the link to the feedback forum request for free transfers to India.

GREAT

Jacqui,
its really great to know that you are looking at other options for withdrawal for us Indian providers because currently all the methods are expensive.

In the meantime...

Your fees for wire transfers are part of the cost of doing business. If the fees are cutting into your earnings, you might want to consider increasing your bids to cover the cost of those fees.