Withdrawal fees

[Facka]

I entered my Deel account to do my usual withdrawal to my own personal Bank account, and i was surprised to see now I'm being charged $5 fee for the same withdrawals methods that were free. This is unfair since we don't have an alternative if we are being paid for our services in Deel. In order to use my money freely I need to pay $5! Why??

[CassyL]

Hi Facundo @Facka, 

Thanks so much for sharing this experience, and I'm sorry to hear that you were caught by surprise with the $5 withdrawal fee.

For additional context, the $5 fee in your account appears to have been a charge attributed to a Cross-border fee. Cross-border transactions involve transferring funds from an entity in one country to another country, even if it's in the same currency. This fee is in place to cover the additional compliance overheads associated with such transactions. For more details on what the Cross-Border fee is and how it might apply to withdrawals, access the article  via our Help Center. 

[Facka]

Hi CassyL,

I understand that this due to cross-border expenses, but your explanation is not correct since I've withdrawn several times to my accounts in the US and never had a cross-border fee, so it is not ok to lie about it. The real reason is that Deel changed withdrawal conditions and now we are charged for withdrawals we were told to be free. I even opened an US-based account to do this withdrawals.

I don't appreciate this change and I would like to continue doing withdrawals in the US without any fees, is this possible? Do I need to change my base country in Deel?

thanks!

[CassyL · Accepted solution]

Hi Facundo @Facka,
Apologies for the delay in responding back to your post! To address your comment re: "your explanation is not correct since I've withdrawn several times to my accounts in the US and never had a cross-border fee" – this fee was only recently implemented, so it was not previously applied on your prior withdrawals.

I understand that the change might come as a surprise. The fee is in response to new charges imposed by Deel's providers for services where our banking partner can manage the increased compliance overhead associated with international transactions.

An alternative to avoid the cross border transaction fee would be to explore withdrawals through e-wallets, like Payoneer for example. You can see a list of e-wallets that are available through Deel here, but you'll just want to make sure that its available to your specific country of residence.

Thanks so much for your patience while I connected with my team for answers. If you have more questions on this, I'm happy to connect you with a member of our Support team who can provide further clarity and assistance around your specific account.

Kind regards,
-Cassy

[manuhank]

I’m also seeing a 5 usd fee for transfering to my us located bank account via ACH. I never had that fee charged in the past. 

[CassyL]

Hi Manuel @manuhank. 

Thank you for sharing your experience as well, and we're sorry if this new change comes as a surprise. In the past, these transfers were free of charge for our users. However, due to changes applied to withdrawals in November, workers withdrawing funds to another country different than their own country of residence (ie. in this case, if you withdraw to a US located bank account but don't live in the US) have a $5 fee applied.

Kind regards,
-Cassy 

[kitpao]

That was not the only change, in the past for withdrawing 1000 dollars to a local bank, the exchange fee was about 5-7 dollars. Now it's 20 dollars!!
So it's either pay 20 for a transfer to a local bank or pay 5 dollars for a transfer to US account. And to think I made my client open up a Deel account... I should have stayed with the normal US-to-US transfer

[CassyL]

Hi @kitpao and @agustin, 

Thanks so much for sharing your thoughts and concerns on the cross border fees for withdrawals. Unfortunately, cross-border payments are subject to regulatory requirements, such as the FATH Travel Rule, where payment providers must comply with regulations and satisfy regulatory obligations. Implementing necessary measures to maintain compliance requires covering overhead costs, including nominal fees. While our provider previously offered these services free of charge, they recently introduced fees to offset the increased compliance overheads, which are beyond Deel's control.

On this note, we are actively in the process of collaborating with another provider that will offer additional withdrawal options. We are nearing finalizing this integration, so we'll be able to keep our users updated on any changes there.

@kitpao for local bank transfers, Deel's withdrawal fee is $0 USD, however, withdrawals via local bank transfer may be subject to a separate provider fee in some currencies that are outside of Deel's control. Additionally, If you are withdrawing in a currency that is not your contract currency, exchange fees and rates will apply. These fees and rates will vary depending on available processors and foreign exchange market rates that could shift during the payment processing, so to avoid these fees, withdraw funds from your Deel balance in the same currency as your contract currency.

Hope this was able to provide some additional clarity, but if you have more questions, I'm happy to help or connect you with a member of our support team so that they can give you more guidance. Thanks again!
-Cassy

[agustin]

I want to express my discontent for having included this fee. As you might have many US-based clients, it would be a good call to find a workaround for this. Otherwise, you are incentivizing us to wait a few payrolls before withdrawing the money (and you say that we must withdraw the money within 30 days)