Answering the Top Affiliate Payment Questions – By Miko Manglapus

by Jenae Reid on July 14, 2017


“The industry is growing internationally, and I’m having a hard time keeping up.”

This was one comment I heard over and over from affiliate networks and platforms at recent Affiliate Summit events. Central to those challenges? International payments. Here we’ll try and tackle a few of those top questions and pain points.

“How do I send commission payments into X country?”

Whether it’s eastern Europe, the United Kingdom, or Asia, the first step into paying into a foreign country is to understand your affiliates preferred payment method, and what is available in their local market. According to the 2016 Affstat report, nearly 50% of affiliates prefer to receive their commission payments by direct bank deposit. We’ve found that percentage grows even higher when you add the preference of local currency deposits for payments to foreign countries. That’s because eWallets and prepaid cards, for example, are not available in everywhere, especially in developing and emerging markets. I recommend that platforms have multiple payment options in place as they scale globally.

“How do I lower the cost?”

There are a lot of factors that go into the pricing of payments that affiliate platforms can become savvier on. When sending mass payments (lots of volume, low value) through a bank, the funds are traveling over a correspondent banking network that charges a fee at every stop before it reaches the end recipient. Additional costs come into play with foreign exchange (FX) and multi-currency transfers. Affiliates platforms should insist on transparency with knowing how FX rates are set, and the impact their volume and value has on pricing.

“How do I tackle compliance?”

As one of the most monitored environments, international payments are filled with regulations and compliance standards that can often seem like a burden to digital businesses. However, these policies and requirements are crucial to eliminating illegal activities, and are centered around anti-money laundering (AML), counter terrorist financing (CTF), and Know Your Customer (KYC). Affiliate platforms can do several things to reduce their risk profiles including maintaining updated articles of incorporation documents, monitoring recipient databases for any fraudulent or risky transactions, and partnering with a fully licensed money service business to screen all transactions against OFAC and other sanction entities lists.

As affiliate marketing surpasses geographical boundaries, networks and platforms that can simplify the payment experience with fast, low cost, and flexible options stand to gain the most from the industry’s continued growth.


Miko Manglapus is a business development manager at Transpay a cross-border payments company.

This article appeared in issue 39 of FeedFront Magazine, which was published in July 2017.


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