Best payment solutions for an affiliate marketer
One of the big questions for affiliate marketers is how to get paid for affiliate marketing in the cheapest way? Since often the affiliate and the advertiser are located in different countries, classic payment methods are too expensive and inconvenient an option. In this article, we will take a look at the most popular and convenient payment solutions for online marketing.
Bank transfers
Classic bank transfers are suitable for transferring small amounts between individuals. If the payer is a legal entity, they won’t be able to issue payment for the attracted clients to an individual. Banks themselves control such transactions and transmit the data to the local tax office. As a result, the advertiser may be charged additional taxes, similar to the ones you cover when receiving your monthly paycheck. In this case, the webmaster will have to register as a legal entity in order to receive affiliate payments without any problems. Affiliate programs and direct advertisers are also constantly looking for ways to pay affiliates with the least losses possible, since any extra commission reduces their own income.
Best suited for
Using bank transfers to receive rewards is most suitable for large teams that have a tax budget and a lot of non-cash expenses. Bearing such expenses brings no benefit to a lone-wolf affiliate, since in addition to making these extra payments, they’ll need to submit tax reports, keep accounting books and so on. It’s a decent option for large teams with big turnovers and advertising costs with VAT, which can be written off as expenses.
Pros
- suitable for those who want to legalize their activities and pay taxes and fees;
- you can work as a legal entity directly with advertisers, sign contracts and receive payment directly;
Cons
- additional taxes and fees;
- you need to submit reports and keep primary documentation as a legal entity;
- red tape and difficulties in transfers from other countries and currencies;
ePayments
ePayments is a payment system founded in 2011 in London. It was originally conceived as a multi cryptocurrency system. By registering an account, the client gains access to online accounts in euros, dollars, bitcoin and ether. It is also possible to exchange cryptocurrency for fiat at close to exchange rates. ePayments even issued MasterCard debit cards that were linked to personal accounts that you could use to pay for goods and services around the world. But in February 2020, the FCA started questioning the legality of such banking operations. Since then, all funds have been frozen and are paid on a first come, first served basis. ePayments recently started disbursing funds, however many customers are still waiting to get their money back.
Best suited for
Small teams and solo webmasters who work with cryptocurrencies and fiat funds. For those who want to use euro or dollar credit cards.
Pros
- for 35 USD you can get a multi cryptocurrency card, which can be used to pay for goods and services around the world;
- convenient and lucrative conversion of cryptocurrencies to fiat;
- headquarters in Britain and partnership with MasterCard;
Cons
- the system is still recovering from the FCA claims;
- problems with frozen user funds following FCA claims;
Paxum
An international payment system from Canada. Paxum has been around since 2007 and is a very popular option for online payments. Many gambling and betting affiliate programs pay their partners via this system. customers get the opportunity to make transfers in 14 world currencies, as well as use a full-fledged Paxum MasterCard debit card. To work with currencies, the client gets their own ACH account for the USA and SEPA account for the EU. This is totally legal and makes sure that problems like the one ePayments had won’t happen. Moreover, over the past years, Paxum has established relations with the adult industry: many webcam services keep their funds in the accounts of this system and use it to pay their agents. Nevertheless, the system obviously wants to avoid any conflicts with the authorities, so its policy prohibits the receipt and payment of funds for risky services. These include Forex and binary options exchanges, betting services and cryptocurrency exchanges.
Best suited for
To receive funds from various affiliate programs, as well as sectors that don’t contradict the platform’s rules. It’s also a convenient solution when working with foreign partners.
Pros
- a reliable, time-tested brand
- most affiliate programs use Paxum;
- a free MasterCard for verified users;
- various plan offers, two types of accounts: personal and business, SWIFT transfers to foreign accounts;
Cons
- working with cryptocurrency services is against the rules
- there’s a daily $2,500 withdrawal and payment limit;
PayPal
PayPal is the world’s oldest payment system. It was founded back in 1998. It is now the main payment system on eBay. PayPal allows customers to settle in 25 currencies and operates in 202 countries.
The best application for this system is dropshipping. Apart from this, it can also be used for other online business payments. By the way, PayPal also uses affiliate marketing for its own development. Partners get rewards and bonuses.
Best suited for
Dropshipping settlements
Pros
- brand reliability and payment speed;
- no extra charge when withdrawing funds to cards of many banks;
- the ability to pay for purchases on the Internet;
Cons
- accounts occasionally get blocked when the user breaks one of the many rules;
- lots of red tape;
- large commissions for transfers to other PayPal accounts;
Skrill
An international payment system, part of the Paysafe Group corporation. It has been operating since 2001 and is registered in the United Kingdom. The brand has established itself as a reliable service provider, this is confirmed by the fact that Skrill is managed by the FCA and successfully passes its verification. The system allows you to combine banking and e-wallets and quickly convert money into other currencies. Skrill also enables you to send funds to the accounts of forex exchanges, as well as betting services. The system doesn’t charge its users large commissions when they purchase cryptocurrencies.
Best suited for
For various online businesses and settlements.
Pros
- instant transfers;
- most casino affiliate programs use this service to pay their partners;
- client funds are deposited in separate personal accounts, to which no other person has access;
- reliable brands and cooperation with global regulators;
- a popular choice among affiliates;
Cons
- withdrawal limits are set based on personal rating and are not known in advance;
- inconvenient and lengthy verification procedure, in order to start it you need to make a minimum deposit;
What payment systems does the Affter Affiliates affiliate program work with?
Most of the convenient and reliable payment systems are used in the Affter Affiliates affiliate program. Affiliates of this partner network can receive their earned funds via: wire, webmoney, skrill, yandex money, qiwi, card transfers. At the same time, the company is constantly increasing the list of payment services for the convenience of its partners.