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How Do Fiverr Payments Work? A Quick Guide for Freelancers and Clients

Fiverr is one of the largest online platforms connecting freelancers with clients across various industries, and understanding how payments work is crucial for both sellers and buyers. If you’re a freelancer on Fiverr, you’ll need to know how to manage payments effectively to ensure smooth transactions. Similarly, if you’re a client, it’s important to understand the payment process when hiring a freelancer.

In this article, we’ll explain how Fiverr’s payment system works, from client payments to freelancer payouts.

How Fiverr Payments Work for Clients

When you hire a freelancer on Fiverr, the payment process is straightforward:

Upfront Payment: Fiverr requires clients to pay for the service upfront. This means that when you choose a gig and agree to a freelancer’s terms, you’ll be prompted to pay before the freelancer begins working.
Secure Payment Gateway: Fiverr offers a secure payment system to protect both clients and freelancers. The payment is processed using trusted payment methods such as credit/debit cards, PayPal, and Fiverr credits. This ensures that all transactions are safe and transparent.
Payment Holding: After the payment is made, the funds are held in escrow by Fiverr until the job is completed. This provides security for both parties—freelancers are assured of payment, and clients are guaranteed that the work will be delivered as promised.
Order Completion and Release: Once the freelancer completes the task and delivers the work, the client can review the submission. If the client is satisfied with the work, they can approve the order, and the funds are released to the freelancer.

How Fiverr Payments Work for Freelancers

As a freelancer on Fiverr, you’ll receive payment after successfully completing a project. Here’s how the payment process works for you:

Payment Processing: Once the client approves the final work, Fiverr releases the payment. However, Fiverr holds the payment for a brief period (usually 14 days) to ensure everything is in order and there are no disputes.
Fiverr’s Commission: Fiverr takes a 20% commission on each order. This means that if you sell a gig for $100, Fiverr will take $20, and you’ll receive $80. The 20% commission is standard and applies to every gig sold on the platform.
Withdrawal Options: After the payment clears, freelancers can withdraw their earnings using several available methods, such as:
- PayPal
- Bank Transfer (via Fiverr’s Direct Deposit)
- Fiverr Revenue Card (a prepaid MasterCard)
- Bank Transfer via Payoneer

Freelancers can choose the most convenient option for their location and preferences. Note that Fiverr charges a fee for some of the withdrawal methods, so be sure to check the details when choosing your payment method.

Payment Timing: While Fiverr processes payments immediately after a job is completed, it may take a few days for the funds to appear in your account, depending on your chosen withdrawal method. If you are a new seller, Fiverr holds funds for 14 days after delivery as a precaution to prevent fraud.

Fiverr Payment Timeline

Client Pays: The client makes the payment upfront when ordering a gig.
Order is Completed: The freelancer delivers the work, and the client reviews it.
Funds are Released: Once the client approves the work, the payment is released into the freelancer’s Fiverr account.
Commission is Deducted: Fiverr deducts a 20% commission from the freelancer’s payment.
Withdrawal: The freelancer can then withdraw the remaining payment through the chosen method.

Fiverr Payment Fees

While Fiverr’s commission is fixed at 20%, there are other fees to consider:

Withdrawal Fees: Depending on your withdrawal method, Fiverr charges fees for transfers (e.g., PayPal or Payoneer). These fees may vary, so it’s important to review Fiverr’s policies for up-to-date information.
Service Fees for Clients: Fiverr also charges a service fee to clients. This fee is typically $2 for orders under $40 and 5% for orders over $40.

Why Fiverr’s Payment System Works

Fiverr’s payment system is designed to protect both clients and freelancers, ensuring that both parties are held accountable for the work and payment. The escrow feature, where payments are held until the job is completed, is a key part of this protection.

For freelancers, Fiverr’s 20% commission is the price for accessing a massive marketplace with millions of potential clients. While it may seem like a lot, the platform offers great exposure and a secure environment to find new work.

For clients, paying upfront ensures that freelancers are motivated to complete the work on time, knowing they’ve already secured payment. It also minimizes the risk of disputes, as funds are only released after the job is approved.

Conclusion

Fiverr’s payment system is designed to ensure fairness and security for both freelancers and clients. By paying upfront, clients protect themselves from incomplete or subpar work, while freelancers are guaranteed payment for their services once the work is completed and approved. Fiverr’s 20% commission fee allows the platform to provide valuable services, from secure payment processing to a global marketplace for freelancers.

Understanding how Fiverr payments work can help you make the most of the platform, whether you’re offering services as a freelancer or hiring a talented professional to complete your project.

Meta Description: Learn how Fiverr payments work for both freelancers and clients. Understand the payment process, Fiverr’s commission, and how to withdraw your earnings.

Keywords: Fiverr payments, Fiverr commission, how Fiverr payments work, Fiverr withdrawal, Fiverr payment system