Which Payment Withdrawal Method is Best to Use in Upwork?

In this post, I will be answering the question "which payment withdrawal method is best to use in Upwork?" If you're in a hurry to know the answer, scroll down to see the comparison of the three methods below. Otherwise, read through a bit of my story.

Some Information on Getting Online Work

I've been getting online work via oDesk, now called Upwork, since 2010. I don't accept full time jobs because I don't want to. I'm also a full time housewife taking care of 5 children. So, I need flexible work time.

I'm happy with getting short projects here and there, so that I could be with my family during times that I need to. For example, I need to tutor my kids when they are having exams; or I want to watch  my girls playing volleyball for their school (just like last week when Janel's volleyball team won their games).

I've written a few blog posts some time ago how to set-up your profile so you can get online freelance jobs through these sites or marketplace. I also shared some tips how to get hired and earn money online based on my experience.

Since I get online jobs via Upwork, I also shared how to get or withdraw my earnings from Upwork to my local bank account. There are many ways how to do that. I used the method called Local Fund Transfer. For me, it's the easiest because once set up, withdrawal requires just a few clicks in the Upwork dashboard and the money is deposited directly to my local bank account in a few days. You can find the tutorial on how to set it up here.

I also have tried one time withdrawing money from Upwork to PayPal and from PayPal to my bank account. Then lately, I tried withdrawing money from Upwork to Payoneer and from Payoneer to my bank account.

A Little Side Gig

I actually did not have any intention of creating a Payoneer account just for withdrawing payments from Upwork. However, last June when I was not accepting online work because the kids are still on vacation, I sort of revisited a make money online site I knew way back.

I left this get paid to click site because I thought it was a waste of time. But when I checked recently, it has evolved into a site offering to pay you for answering surveys, doing CrowdFlower tasks and more.

In short, I got myself involved in this site again. I was surprised that I got offers to answer surveys. Then, I also did some CrowdFlower tasks. CrowdFlower is a platform paying you to do mini-tasks. The tasks are kinda hard and tricky and some tasks do not pay much. If you're not careful, you can get rejected from doing the task.

I did not make a lot of money, but got more than enough to reach payout. I still visit the site from time to time to see if there are surveys. Regarding the tasks, I would do them only if I have nothing else to do. You might like to check this site out. I read in the forum that there are Pinoys earning $300 in two weeks. Wow!

Anyway, the only payment method the site uses that looked okay to me was Payoneer. So, that's how I got myself into using Payoneer.

Upwork's Payment Withdrawal Methods Comparison

Now, let's get back to what I was talking about -- Upwork's Payment Withdrawal Methods. Which of the three is the best? Local Fund Transfer, PayPal or Payoneer?

I compared the amount in Philippine pesos I can get in my bank account using the three methods. If, for example, withdrawing $100 via

  • Payoneer - $100 - $2 (Upwork's processing fee) - $2 (Payoneer's withdrawal fee) = $96 x P50.10 (exchange rate) =  P4,809.60
  • PayPal - $100 - $2 (Upwork's processing fee) - 0 (PayPal does not charge any fee if you're withdrawing at least P7,000) = $98 x 49.92 (Paypal's exchange rate) = P4,843.16
  • Local Fund Transfer - $100 - $0.99 (Upwork's processing fee) = $99.01 x P49.976 (Local Fund Transfer to BPI exchange rate) = P4,948.12

So, where can you get the most money? Local Fund Transfer. Even though Payoneer has the highest exchange rate, it has the most fees deducted. Also, using Payoneer as well as PayPal is more hassle because you have to withdraw from Upwork then withdraw again from Payoneer or Paypal.

The difference is actually only about P100 if you're withdrawing $100 via Local Fund Transfer instead of the other two, but what if you're withdrawing $1000? You get P1,000 more. Of course, your choice of payment withdrawal method will depend on which one is available in your country.

Well, I didn't know that the method I have been using for payment withdrawal through the years is the most rewarding. Now I know. I hope this post has been informative and helpful to you in some way.


Mommy Maye said…
I have an oDesk account a long time ago. I really wanted to work online. However, since I am still working fulltime, I never get a chance to work via oDesk and now nga Upwork na. Anyway, this post is very helpful. Eversince I have been using Paypal for blog posts payment. So I think the two other options are new to me.
Chin chin said…
Actually, Local Fund Transfer is exclusive to Upwork. Maybe other freelance sites have their own system like that. Payoneer has been around for a long time already. I think I knew about it first before Paypal, but I just tried it now.
Mayen Acebron said…
This is very informative. I also like that you have links to your other posts regarding Upwork. I will definitely read them. I have an account there, actually nung ODesk pa lang but I never really used it. But you inspire me to try and find online jobs there again. I really want to work from home. Can I PM you if I need more help? Thank you.
Melgie Campbell said…
This is really helpful Sis, I never tried any other payout method other than Paypal. Thank you for this post.
Chin chin said…
Hi Mayen. Getting some work via Upwork is okay. The downside is that Upwork is getting 20% fees now (since a year ago, I think) instead of just 10%. The 10% fees remain in force for old clients, so I'm glad if old clients contact me again for more work.

Of course, you can PM me and I would be glad to help if I can.
Nilyn said…
I have an odesk account as well a few years back. Then it became Upwork. Just recently, they made my account invisible because it was inactive for years. I'm using PayPal ever since. In case I go back to working via Upwork, I'll consider local transfer.
Aiza C. said…
I used to withdraw via Paypal, pero now I use Local Funds Transfer. Mas konti nga yung fees. I don't have Payoneer account though. I think I'm okay with LFT na. hehe.