Currency Conversion Tips for Affiliates
Do you know where your next commission check is coming from? We don’t mean which affiliate partner is issuing the check, but rather which currency is the commission being issued in?
Understanding currency conversion, and the fees associated with it, can save affiliate partners big bucks when making transfers and withdrawals from their accounts. Almost every payment processor, and gaming partner, handles foreign cash conversion differently so it’s not something you want to let slide.
Here are some tips for making certain you’re getting as much money as you can from your foreign currency commission checks.
Read the Fine Print
Most experienced gaming affiliates are experts at combing through dense Terms & Conditions to parse out relevant details. That same thoroughness needs to be applied to payment processing agreements too.
You won’t have to spend very long going through affiliate forums to find accounts of affiliates who have been burned because they didn’t understand how currency conversions work. Much of the heartbreak and frustration described in these postings could have been eliminated if the poster had just read the fine print from their payment processor.
Some banks hold international checks for as long as six weeks before making funds available. While it might seem like they’re doing this out pure spite or a need to aggravate, they’re really just motivated by profit. The bank waits to convert foreign currencies until they can maximize the exchange in their favor.
Affiliates who are receiving foreign currency deposits in their primary accounts should be clear on the bank’s policies before making the deposit.
Initial Set up
Before setting up an account with a payment processor, think long and hard about which currency you want the account set up in. You may find that setting up the account in a currency that isn’t your own is the best option, especially if you’ll be making payouts in that currency, too.
Watch Currency Rates
We’re not suggesting that every gaming affiliate jump into the FOREX game, but understanding exchange rates and market volatility is very important. A major swing in a currency’s value can take a big bite out of the amount that actually makes it into your account.
Affiliates also need to understand how the currency exchange rate is calculated. Some processors use a running seven-day average, while others use the rate at that particular moment. Either way, you need to know.
Buried deep within all that fine print are the serious details about fees that you’re really looking for; fees. Neteller, Income Access and all of the processors are banks and banks make their money by charging their customers fees on everything they can think of.
What are your top tips for getting the most out of currency conversions? Share them with the CAP community on our General Discussion Forum.