Fiverr takes 14 days to pay freelancers. For the Top-rated sellers, the clearing period is 7 days. And the sellers who joined the “Seller Plus” program can withdraw the fund after 7 days.
Also, there are some selected sellers who can withdraw their earnings on demand and without going through the clearing period. This is called “Early Payout” and Fiverr will charge an additional 1% fee for this on-demand payment.
Since you’re freelancing on Fiverr, it’s really important to know their payment system clearly. Let’s explore some other related topics about payment.
When you can withdraw your earnings from Fiverr?
Fiverr immediately charges the buyers when they buy a gig or place an order. However, they do not send the payment to the sellers as soon as a buyer makes the payment. This amount is held in escrow so they can ensure your payment later on.
After you deliver the work and after the buyer accepts your work delivery, Fiverr takes 20% commission and releases the rest of the 80% to your Fiverr account and not to your bank account.
Your 80% amount is added to the 14-day clearing period that has a “Funds Pending Clearance” status. You will find all your earning status and withdrawal history under the “Earnings” tab.
You can withdraw your earnings after the clearing period ends. After the period ends, the fund will go to your “Fiverr Balance” and you will see this fund under the “Available for Withdraw” tab.
Finally, you can withdraw the available fund to your Paypal or Payoneer card and even you can transfer them to your bank account.
Why does Fiverr hold payments for so long?
Fiverr is one of the worst freelancing websites in my personal opinion. It’s just not about the long wait payment but also for many other reasons. I wrote a comprehensive review about Fiverr that I linked above. Feel free to check that after.
This question not only arose in your mind but also in many others. If they can release the funds in 7 days to a few sellers so why do they take so long for others? This seems to be not fair, right?
Fiverr keeps the whole money in their account and just after a buyer place the order. Freelancers are okay to have the money in escrow until they finish the job.
But Fiverr also keeps the money in their account (pending) even though the buyer fully released the fund. They should release the fund to the seller’s account. This is just because the buyer got the full service (delivery) and approved the order or the order has been marked as completed automatically after 3 days.
But why there is a long wait?
In my personal opinion, Fiverr is doing another business using the freelancers’ money and this is why the freelancers have to wait to get their hard income. And this is why Fiverr takes 14 days to clear funds.
There are no other valid reasons you will find.
Fiverr is not alone who is keeping the freelancers’ money in their pocket but also there are freelancing websites that do this type of shoddy thing.
And this is why I personally don’t like to work on any freelancing websites. This is just because I left my regular job and started freelancing to keep full control over myself and to work with peace of mind. If you want to learn more, read another article on why you should not depend on freelancing websites.
Anyways, Fiverr refers to the clearing period as a security, and sometimes they call it a “Security Period.” But this actually a so-called security period that does not have any valid reasons. Their “Early Payout” with a 1% charge is one the biggest pieces of proof of my statement.
Frequently asked questions
Though I discussed Fiverr’s payment systems, the clearing period & reasons behind it in detail. Again I answered the most common questions shortly. See them below:
Does Fiverr charge buyers right away?
Yes, Fiverr charges buyers right away and keeps the fund in their escrow. After a buyer approves the seller’s work then Fiverr takes their commission and sends the rest of the money for a 14-day clearing period (for the seller).
However, if the buyer cancels an order, the whole money goes to the buyer’s Fiverr balance and not to their bank account or credit card.
The buyer has no way to withdraw the refunded money and the buyer have to make purchases on their platform next time.
This way Fiverr protects its revenue although sellers get victims most of the time.
What are funds pending clearance on Fiverr?
After a buyer approves your work, Fiverr takes their 20% commission and sends the rest of the 80% funds to a 14-day clearing period. After 14 days of the work approval, you’re able to withdraw the money.
This 14-day clearing period is known as the “Funds Pending Clearance” that you see on the above screenshot.
What happens if a Fiverr order is late?
There are multiple things that can happen when an order is late to deliver. Such as:
- The buyer can cancel the order without any problem.
- Your delivery rate will decrease.
- The order completion rate will decrease (if it’s canceled).
- Your seller level may drop on the next evaluation date (15th of each month).
There are a couple of other things that may also happen such as your gigs may not perform well, you may receive fewer orders than past, etc.
However, there are some situations may come when you may need to cancel the order as a seller. To learn more, see when you should cancel an order on Fiverr.
Why does Fiverr hold money for 14 days?
In my opinion and as I discussed briefly earlier in this post, Fiverr does other businesses using the freelancers’ money and that is why they hold money for a 14-day long period. And even though a buyer released the fund.
Fiverr tells that they hold the money for security reasons but actually this is not the case. If you read this whole post, you will see that I clearly proved my point of view.
How do I get a Fiverr early payout?
Only selected freelancers can use the advantage of the “Early Payout.” Also, if you subscribe to their “Seller Plus” program, you will also get an early payout benefit on Fiverr.
If you don’t know, Fiverr charges an additional 1% fee to use their early payout.
How long does it take for Fiverr to clear payment for a new seller?
It takes 14 days to clear the payment to the new sellers.
Do you get paid instantly on Fiverr?
No, you do not get paid instantly on Fiverr. After your buyer accepts the work, you have to wait 14 days more to receive your 80% money.
Does Fiverr always take 20%?
Yes, Fiverr always takes 20% from the sellers and there is no exception. No matter whatever your seller level is. If you use their early payout, they will charge another 1% fee. Fiverr also, charge 20% from the tips.
For buyers, Fiverr charges 5% to the buyers and the minimum charge for buyers is $2.
See more detail about Fiverr fees in another post.
Why is my money still pending on Fiverr?
This is just because your money has to go through a 14-day clearing period. After then you will be able to withdraw your money.
What is better than Fiverr?
Most freelancing websites are very similar in their policy, business model, and attitude. They are business organizations just like any other manufacturers or product sellers.
However, no freelancing website does the production or the actual work. The actual work is done by the freelancers.
The freelancing websites are a middleman who guarantees money protection & work delivery and takes a commission as the middleman.
Anyways, all the freelancing websites are not exactly the same. There are a couple of exceptions. In my personal opinion, “Toptal” is the best freelancing website and definitely better than Fiverr & any others.
If you’re curious enough, see Fiverr alternatives.
Why is Fiverr so cheap?
There are high-paying clients on Fiverr but they are very fewer on Fiverr. Mostly it’s a cheap platform where buyers can get their job done at a lower price than the actual market price.
Fiverr is cheap for its business model. They do business by targeting cheap people. Even though their name came from the phrase “Five Dollars.”
There are also various other reasons for being cheap such as geographical, unparallel competition, low budget clients, confusing gig prices, etc.
To learn more, see why is Fiverr so cheap.
Conclusion
Fiverr normally takes 14 days to pay their freelancers. Also, there is some exception. A top-rated & seller-plus member can withdraw earnings after 7 days. Sellers who are selected for “Early Payout” can withdraw their earnings on demand without going through the clearing period.
