How does payment work on Fiverr?

Fiverr is one of the top choices for independents as it creates a space for finding global clients. The Fiverr payment method also draws attention as it’s straightforward and allows various payment platforms. However, Fiverr fees are not the most competitive, and every withdrawal has to go through PayPal or Payoneer. So, you may want to see Fiverr alternatives before setting up an account. Still, Fiverr is a commonly used marketplace and you may be curious about how to get paid on Fiverr.

In this article, you will find everything you need to know. Plus, you will learn about a better alternative that offers local and international payment methods - aka Ruul.

How does the Fiverr payment method work?

Once you start working on a project on Fiverr, the client pays for it immediately and the platform keeps it for you until you complete the order.

After the order is completed, Fiverr applies 80% of the payment to your account under a “pending” status, and the platform keeps 20% as a Fiverr fee from the seller’s end.

Notice that: When you work through Fiverr, you need to consider the Fiverr costs and propose an amount to your clients accordingly. If you don’t agree to give a 20% discount on your services, you need to increase your prices. 

Pending status usually lasts 14 days, or 7 days for Top Rated freelancers, Fiverr Pro freelancers and Seller Plus Standard or Premium members. Once the funds clear, you can withdraw your money. If the buyer does not respond to your delivery, the order completes automatically after three days, and the clearance period starts from there.

But what may interest you more at this step is that the buyer can ask to cancel. On an active order, the request comes to you through the Resolution Center and is accepted automatically if you do not answer within 48 hours. If you cannot agree, or the order is already completed, Fiverr’s Customer Support decides.

When everything goes well, you can withdraw up to $5,000 per transaction and make several withdrawals to move a larger amount. Fiverr adds a 24-hour wait after your first withdrawal and after you add or change a withdrawal method.

The advantages of Fiverr payment

• The platform ensures that the buyer will not ghost you by getting payment from the buyer while starting the project.
• There is no surprise about the Fiverr fee, even though it’s quite high.

Disadvantages of Fiverr payment

• The withdrawal process is quite long. You have access to your money after 14 days, or 7 days if you are a Top Rated freelancer, a Fiverr Pro freelancer or a Seller Plus Standard or Premium member. Top Rated freelancers and Seller Plus Premium members can also use Early Payout, which clears earnings sooner for a 1% fee.
• Fiverr takes a cut from your service: 20% is quite high while there are much better options. For example, Ruul charges a 5% commission per transaction, with no monthly fee.

Fiverr: How to get paid

You will need to follow these steps to get paid on Fiverr. Once you get a job on Fiverr, be patient and do these for Fiverr payment. 

If you are stuck in the first step, avoid these Fiverr bidding mistakes.

Account setup for Fiverr’s payment system

Fiverr is not only a direct payment platform, but also a platform for selling freelance work. But if you are done with this part, you can move on to thinking about how to get paid as a freelancer or how to pay a freelancer.

As a seller, your Fiverr account is enough to start working on a project. But you need to connect your payment account to withdraw money. 

Platforms and currencies you can use for Fiverr payment

Fiverr operates entirely in USD, meaning all seller earnings are displayed in US dollars. You choose your withdrawal currency when you set up PayPal or Payoneer. PayPal lets you change it at any time, while a Payoneer method has to be removed and added again to switch currencies.

When withdrawing funds in a different currency, Fiverr applies conversion fees, and additional charges may vary depending on your bank.

Fiverr offers three withdrawal methods:

• PayPal (if available in your country), with no Fiverr fee and a $1 minimum
• Bank transfer through Payoneer, with a $1 to $3 fee and a $20 minimum
• Payoneer account, with a $3 fee and a $10 minimum. Payoneer also charges a $29.95 annual fee if the account receives less than $6,000 in 12 months

Also see: Ruul, on the other hand, lets you get paid in 140+ currencies, giving freelancers more flexibility. It also supports crypto payments, making it a modern alternative for global transactions. You can calculate the costs and fees on Ruul’s pricing page. 

With more currency options, freelancers can cater to clients worldwide without worrying about exchange limitations.

If you are a buyer:

As a buyer, you can use Fiverr’s payment options such as

• Credit/debit cards,
• PayPal,
• Google Pay,
• Apple Pay, etc. to purchase a service you need.

As we mentioned earlier, you will pay for the service once the project kicks off.

Wait for the Fiverr payment system to process

Fiverr’s payment system ensures sellers get paid securely. After completing a project, you submit the work for client approval. The buyer reviews it and can request changes if needed.

Once satisfied, the buyer marks the order as complete. This confirms the successful delivery of the project. Fiverr offers multiple payment methods for withdrawals.

After completion, Fiverr holds the payment during a “clearing period.” For most sellers, this lasts 14 days. Top Rated freelancers, Fiverr Pro freelancers and Seller Plus Standard or Premium members wait 7 days.

This holding period protects both buyers and sellers. It allows time to resolve disputes before the funds are released.

Withdraw your money via your selected payment method

Once the clearing period ends, your money is ready for withdrawal. You can transfer it to PayPal, to your bank account through Payoneer, or to a Payoneer account, depending on your chosen method.

Fiverr takes a 20% fee from every transaction. This means sellers receive 80% of the total gig price. This is usually what keeps freelancers away from the platform. On Upwork, the fee varies by contract from 0% to 15%, and on Ruul it is 5%. 

For the buyers: How to pay on Fiverr

If you are a buyer on Fiverr, when you find a service, you place an order and pay in advance. Until the work is completed, Fiverr keeps the money and does not transfer it to the freelancer.

This is to prevent scams and allow buyers to get satisfactory results. The same applies to freelancers. The client pays before work starts, so the money is already held by Fiverr when you begin, which protects both parties.

As for payments, the price you pay as a buyer includes the job price and the Fiverr service fee. This is 5.5% of the order total, plus a $3.50 fee on orders under $200. Extras and tips are separate payments, so each one carries its own service fee.

Fiverr vs Ruul for payments

When you sell a gig as a seller on Fiverr, your client pays instantly, but you don’t get paid immediately. Fiverr keeps the money until you complete the project. At the end of the project, you’ll receive your money upon client approval.

Paying high commissions - or not

For every sale you make on Fiverr, you pay a 20% commission, so 80% of it is yours. While this fee is necessary to cover the cost of running Fiverr, it’s considered a fairly high market average.

In contrast, Ruul’s commission is 5% per transaction, with no monthly fee, so freelancers keep more of their earnings. Also, you can ask your client to pay the commission. You can simply select the service fee payer while preparing the invoice.

Waiting long to get paid - or not

Ruul has no extra waiting time to process the money from your client. This is quite revolutionary among invoicing and checkout services for freelancers.

Ruul pays you within 1 business day after your client completes payment. You can even get your payment in minutes depending on the currencies, countries, and banks involved. 

Fiverr makes most freelancers wait 14 days to clear their money. The shortest standard wait is 7 days, and Early Payout, open to Top Rated freelancers and Seller Plus Premium members, can shorten it further for a 1% fee.

Believe in user reviews - or not

Real users on Trustpilot rate Ruul 4.5, classifying the platform as “Excellent.” In comparison, Fiverr holds a rating of 3.4, which is considered “Average.”

Payment options 

Ruul offers a variety of payment options, with crypto payments being one of the most attractive choices. Freelancers using Ruul can receive payments through bank accounts or crypto accounts, such as Binance. On the client side, payments can be made via bank transfers or credit cards.

In comparison, Fiverr provides different payment methods for freelancers and buyers. Freelancers can withdraw through PayPal (if available in their country), a bank transfer through Payoneer or a Payoneer account, and Payoneer adds a $29.95 annual fee if the account receives less than $6,000 in 12 months. Buyers on Fiverr, on the other hand, can pay with credit or debit cards, PayPal, Apple Pay, Google Pay and other options that depend on their country.

What else to know about Fiverr payment

Here’s what you need to know about the Fiverr payment system, both as a seller and a buyer.

How to handle revisions and disputes

One of the most important features of Fiverr’s payment system is the way it handles revisions and disputes.

If a buyer is not fully satisfied with the work, they can request revisions. Sellers are expected to meet customers’ reasonable requests as long as they remain within the scope of the original order.

For minor adjustments, sellers can make the necessary changes without significantly delaying payment. This ensures that the process is smooth and efficient.

However, if a dispute arises over quality, project requirements, or other concerns, either side can open a request in the Resolution Center on the order page, such as an order update, a new delivery date, a partial refund or a cancellation. The other side has 48 hours to respond before the request is accepted automatically. If you still cannot agree, or the order is already completed, Fiverr’s Customer Support team reviews the case.

This system protects both buyers and sellers, helping to maintain trust and credibility on the platform.

The importance of reviews and ratings

Fiverr’s payment system has a review and rating system that plays a very important role in the platform experience.

Once an order is completed and paid for, both buyers and sellers have the right to leave reviews for each other.

These reviews help sellers gain credibility and attract more clients, while buyers can use them to find reliable freelancers for future projects.

You need to maintain your rating, as a high rating means you win more work as a seller. Positive feedback significantly increases a freelancer’s volume of work, as buyers often check reviews before a purchase.

Keep in mind that earning high ratings requires consistently delivering quality work and maintaining good client relationships. This will help you generate more orders and higher earnings.

After completing your Fiverr payment process, use Ruul for invoicing and financial management. Ruul offers an easy way to create invoices, along with AI tools and other resources designed specifically for freelancers.

FAQ

How long does it take to get paid on Fiverr?

After a Fiverr order is completed, the payment is held for 14 days, or 7 days for Top Rated freelancers, Fiverr Pro freelancers and Seller Plus Standard or Premium members. At the end of this period, you can withdraw it with your chosen method.

What is Fiverr used for?

While freelancers use Fiverr to sell services, businesses use it to find the freelance talent they are looking for.

Does Fiverr take a cut?

Fiverr takes a 20% commission from each sale and charges buyers a 5.5% service fee, plus $3.50 on orders under $200.

How do you pay on Fiverr as a buyer?

On Fiverr, you can make purchases both on the web and mobile, with debit and credit cards, PayPal, Apple Pay and Google Pay, plus local options in some countries.