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Foreign Exchange Fees Explained

impact.com allows brands and partners to agree to contract terms even if they do not use the same currency. Paying out or receiving commissions with a different currency to your contract terms incurs exchange rate fees, however, and programs running in multiple regions with one account cannot avoid these fees. Depending on the scenario, either you or your partners will have to cover these fees.

For Example

  • If your wallet currency is USD and the contract currency with your partner is USD, but the partner’s withdrawal currency is not USD, then the partner will take on the exchange rate fee and earn a little less commission.

  • If your wallet currency is USD and the contract currency with your partner is EUR and the partner’s withdrawal currency is EUR, then you will take on the exchange rate fee and have to fund a little more.

The only way to avoid said fees is to have multiple accounts, each in the respective region's currency, and then to contract partners within that same region or currency.

Check your account currency

  1. From the left navigation menu, select ContractsContracts

  2. On the far right of the contract you’d like to verify, select [More] → View.

  3. Scroll to the General Terms section, in the Currency field it should stipulate the currency that was agreed upon.

Exchange rate calculations

If a payout is received or paid in a currency different from your contract, a forex calculation is performed. These calculations are done based on the latest intraday exchange rate at the point that the transaction happens; once calculated these values do not change. This locked rate is the expected retail conversion rate at the time of the event, therefore exchange rate calculations are performed on the action date rather than the payout date.

This locked rate is the expected retail conversion rate at the time of the event which is higher than Bloomberg rate that customers can find on online FOREX sites as impact.com factors in a buffer margin onto the exchange rate at the time of the action locking date.

Exchange fees calculation scenarios

Scenario 1

Your wallet currency and the contract currency agreed upon are both in USD however, the partner’s withdrawal currency is in EUR.

Let's say on 8 December the partner earns 5.00 USD for a sale as stipulated in the contract with you. On 8 December, the exchange rate at the time of conversion was 1 USD = 0.878554233 EUR.

We factor in impact.com’s buffer margin (3% is used for this example) on the calculation. 0.878554233 * 0.97 = 0.852197606 We take the source currency amount of the action and apply the exchange rate of 5.00 USD * 0.852197606 = 4.26 EUR.

The partner is thus ultimately compensated 4.26 EUR for this action. You will still fund 5.00 USD to effect the payment to your partner.

All of the calculations are done by the platform, there is no human involvement in determining these values.

Scenario 2

Your wallet currency is in USD, however, the contractually agreed upon currency as well as the partner’s withdrawal currency are both in EUR.

Let's say on 8 December the partner earns 5.00 EUR as the contract currency is set to EUR. On 8 December, the exchange rate at the time of conversion was 1 EUR = 1.13837 USD. We factor in impact.com’s buffer margin (3% is used for this example) on the calculation. 1.13837 * 1.03 = 1,17252115 EUR * 1.1725211 = 5.8626055 USD.

This means that you have to fund your account with 5.8626055 USD in order to compensate the partner the 5 EUR for a successful sale.

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