Understanding freelancer fees in Smartcat
Understanding these fees helps you choose the best payout method and maximize your earnings.
Overview
This article explains the fees that may apply when freelancers (suppliers) receive payments through Smartcat. Understanding these fees helps you choose the best payout method and maximize your earnings.
⚠️ Smartcat does NOT deduct a platform commission from supplier earnings. The Marketplace commission is charged to clients, not freelancers. The only deductions from your payments are transaction fees charged by banks and payment processors.
When to use it
You received a payment that is lower than expected and want to understand why
You want to compare payout methods before selecting one
You want to minimize fees on your withdrawals
Requirements and Limitations
Requirements:
A verified Smartcat account with completed payout method setup
Minimum withdrawal amounts vary by payment method and region
Limitations:
Transaction cost compensation is available for workspace members but NOT for vendors found through Smartcat Marketplace
Intermediary bank fees on international wire transfers ($5-$40) are outside Smartcat's control and cannot be predicted or reimbursed
Currency conversion fees (~2.5%) apply when your withdrawal currency differs from your balance currency
How it works
Transaction costs by payment method
When you withdraw earnings, a processing fee is deducted depending on your chosen payout method. These fees are charged by banks and payment systems—not by Smartcat.
All fixed fees are set in USD and converted to your payout currency at the current rate at the time of processing. A 0.5% fee on the withdrawal amount is also charged alongside the fixed fee for all methods. These changes took effect on March 27, 2026.
If your payout method is not listed in the table below, no fee changes apply to it.
Payout Method | Fixed Fee | Fixed Fee Currency | % Fee | Minimum Payout (payout currency) |
Local wire in AED | $10 | USD | 0.5% | 185 |
Local wire in ARS | $3 | USD | 0.5% | 15,000 |
Local wire in AUD | $2.50 | USD | 0.5% | 15 |
Local wire in BRL | $3 | USD | 0.5% | 50 |
Local wire in CAD | $3 | USD | 0.5% | 15 |
Local wire in CLP | $3 | USD | 0.5% | 9,000 |
Local wire in EUR | $2.50 | USD | 0.5% | 9 |
Local wire in GBP | $2.50 | USD | 0.5% | 8 |
Local wire in HKD | $5 | USD | 0.5% | 80 |
Local wire in IDR | $5 | USD | 0.5% | 170,000 |
Local wire in INR | $3 | USD | 0.5% | 950 |
Local wire in JPY | $10 | USD | 0.5% | 3,200 |
Local wire in KRW | $10 | USD | 0.5% | 30,000 |
Local wire in LKR | $2.50 | USD | 0.5% | 3,200 |
Local wire in MXN | $2.50 | USD | 0.5% | 180 |
Local wire in MYR | $3 | USD | 0.5% | 40 |
Local wire in NPR | $3 | USD | 0.5% | 1,500 |
Local wire in PHP | $5 | USD | 0.5% | 600 |
Local wire in PLN | $3 | USD | 0.5% | 37 |
Local wire in SGD | $2.50 | USD | 0.5% | 13 |
Local wire in THB (< 49,999) | $5 | USD | 0.5% | 350 |
Local wire in THB (> 49,999) | $10 | USD | 0.5% | 350 |
Local wire in TRY | $5 | USD | 0.5% | 1,000 |
Local wire in USD | $2.50 | USD | 0.5% | 10 |
Local wire in VND | $3 | USD | 0.5% | 270,000 |
International wire in USD | $10 | USD | 0.5% | 50 |
PayPal (US accounts) | $1 | USD | 0.5% | 5 |
Payoneer in USD | $1 | USD | 0.5% | 10 |
Payoneer in EUR | $1 | USD | 0.5% | 10 |
Currency conversion fees
If your payout requires currency conversion, Smartcat uses current mid-market rates plus approximately 2.5% markup.
💡 To avoid conversion fees, set your rates in the same currency as your preferred withdrawal method.
Intermediary bank fees
For international wire transfers, intermediary banks may deduct additional fees during the transfer. These typically range from $5 to $40.
Platform commission
Smartcat does NOT deduct a platform commission from freelancer earnings. The Marketplace commission is charged to the client on top of your rate—you receive your full agreed rate.
Commission rates charged to clients:
End Customers: 20% (ForeverFree), 10% (Starter), 0% (Team/Enterprise)
LSP Customers: 10% for freelancers, 5% for vendors/agencies
Transaction cost compensation
Some clients choose to compensate their freelancers for transaction costs. If a client has enabled this option:
You receive your payment in full without transaction fees being deducted
The client is invoiced monthly for the total transaction costs
You can see which clients are compensating your transaction costs in My Payouts (click "Learn more" on your payout method).
How to minimize fees
Choose low-fee payout methods: ACH (US), EU local wire, or Payoneer have $0 fees. Choose lower fixed-fee payout methods: PayPal (US accounts) and Payoneer have $1 fixed fees. Note that the 0.5% variable fee applies to all methods.
Avoid currency conversion: Set rates and withdraw in the same currency
Batch small payments: Wait until you have a larger balance to withdraw
Check client compensation: Some clients compensate transaction costs—check your payout method details
Where to find your fee information
Go to My Payouts in your Smartcat account
Review the description of each payout method—fees and limitations are shown per method
Your Payout history shows amounts paid and any deductions applied
Troubleshooting
Problem: I received less money than expected
Solution: Check your payout method's fee structure in My Payouts. As of March 27, 2026, all withdrawals include a fixed fee (set in USD) plus a 0.5% fee on the withdrawal amount. For international wire transfers, intermediary banks may have also deducted additional fees ($5–$40) during transit.
Problem: I want to avoid currency conversion fees
Solution: Set your rates in the same currency as your preferred withdrawal currency and choose a payout method that supports that currency directly.
Problem: My transaction fees seem high
Solution: Consider switching to a lower fixed-fee payout method such as Payoneer or PayPal (US accounts). Note that the 0.5% variable fee applies to all withdrawal methods regardless.