A top priority of many advertising and affiliate networks, marketplaces and other global businesses is to be able to offer their recipients pricing transparency via a committed foreign exchange rate. Committed rates are all about taking the guesswork out of payouts, with the goal of reducing recipient complaints and dissatisfaction. From a marketplace or affiliate or advertising network’s point of view, when you have a bill to pay, you want to pay it as close to in-full as possible. As such, it’s critical to understand each “hop” that the funds will make on their way to the recipient, and whether or not there is a fee at that hop. Are you aware of where fees can be applied and what the fees can be? Where will the foreign exchange be marked up if there are multiple hops in a bank network or an ATM network? Ensuring no under- or over-payment when currency needs to be exchanged is an important part is making sure reconciliation goes smoothly.
Because many payouts providers outsource portions of their payouts process to other payment service providers, they don’t control every step of the process. Without an owned bank network, and lacking direct integrations with the banks involved, many payouts providers don’t know how many intermediaries might take a cut, or whether there will be landing fees incurred during the process. As a result, they can’t offer your recipients a committed rate, and the amount your recipients receive might not be the amount they expect. That’s a surefire formula for recipient dissatisfaction!
Other times, you might feel encouraged to find that a payouts provider will give committed rates, but then discover that they only offer those committed rates in a limited number of currencies. And it’s true: When it comes to currencies that tend to be volatile, such as the currencies in emerging markets like Turkey, India, China, Ukraine, Israel, Malaysia, Mexico, Indonesia, Vietnam, Uruguay or the Philippines, many can’t provide committed rates.
What’s the answer to obtaining committed rates from your payouts provider, in any market? It’s a provider who owns their network and all of the bank relationships in it. At Transpay, thanks to direct integrations with bank partners worldwide, we are able to retain full control over the fees involved as well as the forex rates. Our network offers broad coverage in more than 60 currencies, and we offer committed rates in all of those currencies. Transpay offers an ideal solution for ensuring that you are meeting and exceeding your recipients’ payouts expectations.
To learn more about Transpay's direct integrations with bank partners worldwide, check out our Ultimate Guide to Local Bank Transfers Series.