That payout error isn’t random. It’s regulation.
Financial law draws a strict line between a marketplace and a money transmitter.

Here’s why that rule exists, why it blocks so many Ethiopian freelancers, and how to actually fix it.

The moment it breaks

You finish a project.
Funds appear on your dashboard.
You click Withdraw — and see:

“Beneficiary name mismatch.”

Upwork:
“The name on this withdrawal method and name on your upwork account don't match exactly.”

Fiverr / Payoneer:
“The name on your Fiverr and Payoneer accounts must match.”

No payout. No explanation.

It’s not bias. It’s not a technical error. That language exists because regulators require it.

Why it happens in plain terms

Upwork, Fiverr and other platforms don’t decide who they can pay — regulation does.

They operate under financial rules that say:

“Funds can be released only to the verified person who earned them.”

To stay legal, the money can go only to the verified person who earned it. If they send your payout to anyone else — even your spouse or relative — regulators classify that as money transmission, meaning moving money on behalf of another person.

That instantly changes their legal status:
they would become a Money Services Business (U.S.) or a Payment Institution (EU) — requiring licenses, AML reporting, and constant audits in every region they serve.

Those obligations are complex, expensive, heavily monitored and outside thier business model.
So the platforms stay outside that category by paying only one person: you, the verified freelancer.

The regulations behind the rule

U.S. FinCEN / Bank Secrecy Act
Moving funds for third parties counts as money transmission. Marketplaces avoid MSB registration by paying only verified sellers.

EU PSD2 / PSD3
In Europe, paying an unverified person requires a payment-institution license. Upwork and Fiverr aren’t banking providers, so they can’t.

OFAC Sanctions (U.S. Treasury)
Every U.S. dollar transfer must confirm the end recipient isn’t on a sanctions list. Paying unverified people breaks that chain.

IRS 1099-K / DAC7 (Tax rules)
Platforms must report income to the exact person who received it. Paying someone else creates mismatches and penalties.

None of this is optional — it’s law.
That’s the structure regulators require worldwide.

Closing the gap

If you already have a supported USD account in your own name, you’re fine.

If you don’t, you need one — a verified, legally issued USD account that belongs to you under U.S. or international banking rules.

In most countries, freelancers already have USD accounts that global systems recognize.
For Ethiopian freelancers, that route barely exists — not because of identity issues, but because of limited access to global banking rails.


That’s finally changing.

Modern fintechs like Mela solve this not by bypassing the law, but by operating within it — giving freelancers verified USD accounts recognized by global payment networks.

Once the system sees your name and account align, your payout clears.
Your USD lands in your own verified account.
From there, you can send, convert, or spend it however you want.

Until then, the system simply won’t move it — because the law doesn’t allow it.

For Ethiopian freelancers

Global payouts failed for years not because of bias, but because the system had no compliant place to send the money.
Now that compliant USD accounts are available, that wall is finally lowering.
The same rule that once stopped you can now recognize you.

Four takeaways

• “Beneficiary mismatch” is a legal requirement, not a technical bug.

• Marketplaces can only pay the verified freelancer — never anyone else.

• The real barrier is access to a compliant USD payment system in your name.

• Once you have that, payouts clear legally and instantly.

Disclaimer:

This article is for informational purposes only. It does not constitute financial, tax, or legal advice. Regulations differ by region and may change without notice. Always confirm payout requirements with your platform or financial institution.