What is the difference between my current payment preference and the local currency option, as both are bank transfers?

Currently, you receive payments only in USD from Kolabtree via Payoneer. Payoneer remits USD to your bank account, and conversion into your local currency is done by your bank. Applicable charges typically range between 2.5% and 4.5%, depending on your bank and country.

With the local currency option, Kolabtree still pays you in USD, but Payoneer converts the amount into your preferred local currency (selected while editing your payment preference). This conversion is done at a fixed rate of 2% of the transfer amount and credited directly to your bank account using the mid-market exchange rate.

The mid-market rate is sourced from Reuters/Bloomberg at the moment Kolabtree processes the payout.

By selecting the local currency option, you can also eliminate intermediary bank charges and wire landing fees that may apply when receiving USD-only transfers.