Process of Affiliate Payment, Popular Payment Types 2024

Affiliate marketing is an effective marketing strategy that attracts many advertisers and marketers to participate. Affiliate payments play an important role in ensuring benefits for both parties and are a decisive factor in helping them achieve success. This article will give you a comprehensive overview of popular affiliate payment types, common payment problems, and the most streamlined processing methods, from there you can choose the payment method that best suits your business goals.

What is affiliate payment?

Affiliate payments are compensation paid to an affiliate for promoting a product, service, or website. This activity is often part of an affiliate marketing program, in which individuals or companies (affiliates) promote products or services on behalf of another company (merchant or advertiser) in exchange for a commission.

Types of Affiliate Payments method

Payment by PayPal

PayPal is essentially an e-wallet that allows you to collect payments and transfer money between individuals and businesses in seconds. PayPal payments are a reliable, fast, flexible, and super secure payment system available on most advertising and affiliate networks. The widespread use of PayPal is one of the reasons why PayPal is so popular despite its higher fees.

Affiliate networks will likely pay their affiliates through PayPal, and creating a PayPal account is free and has no maintenance fees. This is one of the first things you should do when starting your journey to becoming an affiliate marketer or blogger.

However, a notable drawback of PayPal is its high fees. Typically, this fee is 2.9% of the total amount plus a flat fee of $0.30 per transaction. For example, if you send $100 via PayPal, the recipient will only receive $96.80 and $3.20 will be the transaction fee.

>>>> Find out more: List of Best CPA Networks High Commission Updated 2024

Affiliate Payment
Payment via PayPal

Payment with Payoneer

Payoneer is a trusted cross-border affiliate payment solution widely used by bloggers, affiliates, Amazon sellers, and freelancers.  Payoneer’s benefits are diverse. First, you can keep more of your income by saving on expensive bank transfers and paying just a 3% fee when paying with a credit card. At the same time, Payoneer offers a simple service with low fees, making it easy for business owners to pay publishers.

Before Pingpong, Payoneer was the preferred service for receiving affiliate payments from abroad. Although their transaction fees may be higher than Pingpong, many ad networks have direct integration with Payoneer, which makes Payoneer still one of the most popular solutions for receiving payments online.

Affiliate Payment
Payment via Payoneer

Payment with Wire Transfer

Wire transfer is another method that many people can use to receive large affiliate payments. Many companies offer direct withdrawal options via bank transfer. This is the most popular payment method globally, but also one of the most expensive.

Bank transfers are often used by large affiliate networks and sites, where commissions are large, and processing them via e-wallets such as PayPal is not always appropriate.

Although this is a reliable method, payment processing is often not quick, especially for international transfers, and transaction fees are often higher than other methods on the market. For example, an international transaction can cost $100 per withdrawal, compared to paying PayPal fees. However, fees can vary by bank and country, and some banks also charge high currency conversion fees.

If you’re a large company or work with local publishers, offering bank transfers may be your top choice.

>>>> Learn More: How to pay affiliate marketers? (Most preferential)

Affiliate Payment
Payment via Wire Transfer

Payment by Bitcoin

There is no denying the rapid development of one of the most advanced payment methods – Bitcoin. More than just a form of payment, Bitcoin is a new online digital currency, created in 2009.

Bitcoin has unique characteristics that traditional payment systems cannot match. Every transaction takes place without the intervention of any intermediaries, including banks that may charge transaction fees. It does not require any type of authentication and transactions are carried out without revealing the true identity of the Bitcoin wallet owner.

Global transactions are simple and inexpensive, as Bitcoin is not tied to any particular country and is not subject to any government regulations. Many online companies, affiliates, and merchants use Bitcoin because there is no need to rely on credit cards.

>>>>You might be interested: CPA Commission: A Guide for Advertisers and Publishers

affiliate marketing payment
Payment via Bitcoin

Payment with Stripe

Stripe is a popular payment processor worldwide and is preferred by many entrepreneurs for collecting payments. This is one of the latest trends in the payments space, where companies are integrating with Stripe for affiliate payments.

One strong point of Stripe is the ability to reduce payment fees, helping businesses save costs. At the same time, Stripe is also a popular service and is available in many countries, creating favorable conditions for businesses operating internationally.

If the payment passes a specific threshold (e.g. more than $130), the recipient will be incentivized to Choose Stripe instead of PayPal. This may provide cost or convenience benefits to the payee. For example, a business sends a payment of $150 to an affiliate partner. If partners choose Stripe over PayPal, they may enjoy lower fees or a faster and more convenient transaction experience.

>>>>See also: How to Make Money With CPA Marketing? Detailed instructions from A – Z

affiliate marketing payment
Payment via Stripe

Payment by Skrill

Skrill, formerly known as Moneybookers, is a popular payment processing method in the affiliate community, especially in programs with international operations.

One of the outstanding advantages of Skrill is its ability to automatically convert currencies, which ensures that affiliates from anywhere in the world can receive payments conveniently and without any hassle.

Skrill service is available in about 190 countries and supports 40 different currencies. This makes Skrill a popular choice for publishers when they don’t have another e-wallet or when Skrill best suits their needs. Furthermore, Skrill is free to join and has no maintenance fees as long as you use the service at least once in 12 months.

Skrill is often popular in the online gaming sector, for its low fees and the convenience it offers users. Furthermore, people can also use their Skrill wallet for online shopping instead of using credit cards. For other integration methods like BitCoin, Neteller, and more, Skrill will charge you based on a percentage of each transaction.

>>>> See also: Affiliate Marketing Niches: 10+ Highest Paying Program Newest 2024

affiliate marketing payment
Payment via Skrill

Payment with Neteller

Neteller is one of the most popular e-wallets today and is an Affiliate payment method used in more than 190 countries and supports 22 different currencies. In particular, Neteller often appears in affiliate programs related to the gambling industry. Receiving money into your Neteller account is free. However, if a user wants to transfer funds to another user, they will have to pay a transaction fee of 1.9% (with a maximum fee of $20 per transaction).

>>>> Learn more: How to earn passive income with affiliate marketing with 9 Best Tips

Affiliate payment
Payment via Neteller

Payment with WebMoney

WebMoney is one of the most popular forms of affiliate payments in Eastern Europe and the countries of the former Soviet Union. This is the ideal choice for those who want to use their money to buy traffic, web hosting, or domain names in this area.

This payment system operates in 91 countries, allowing transactions in local currencies or USD/EUR for international transactions. WebMoney Transfer provides many services such as online banking, person-to-person payments, online transaction sites, merchant services, and online payment systems.

One of the main advantages of using WebMoney for publishers is low transaction fees. The fee for person-to-person transactions is 0.8% of the amount sent, with a limit of $50 per transaction.

If you manage an affiliate network with multiple branches in Eastern Europe, offering the option to pay via WebMoney can help people who can’t use PayPal withdraw money easily and with minimal losses.

Affiliate payment
Payment via WebMoney

Common issues related to affiliate payments

Late and inconsistent payments

Delays and inconsistencies in affiliate payment processing can cause frustration and affect the relationship with the affiliate marketer. To solve this challenge, there are a few ways you can apply:

  • Establish Clear Terms: Determine payment terms in advance, including frequency and expected processing time. Communicate these terms to affiliates so they understand and manage their expectations.
  • Optimize Payment Process: Improve payment process to minimize delays. Use automation tools and systems to facilitate faster and more accurate payments to affiliates.

Tracking and attribution issues in links

In affiliate marketing, one of the main challenges is accurately tracking and attributing conversions to the appropriate affiliates. With the increased use of ad blockers and security measures, tracking accuracy may be affected. Here are some ways to solve this challenge:

  • Use Advanced Tracking Technology: Consider implementing advanced tracking solutions such as pixel-based tracking or server-to-server tracking. These methods provide more accurate and reliable data than relying on traditional cookies.
  • Implement Multi-Touch Attribution Models: Instead of relying solely on last-click attribution, consider using multi-touch attribution models. This helps distribute credit fairly to all affiliates that contribute to the customer journey.
  • Check Tracking Data Regularly: Perform periodic checks on your tracking data to detect and correct any discrepancies. This ensures transparency and trust between affiliate partners.

High chargeback rate in payments

High chargeback rates can be a significant concern for affiliate marketers, causing financial loss and threatening their reputation. To mitigate this challenge, the following measures can be taken:

  • Establish Fraud Prevention Measures: Implement robust mechanisms to detect and prevent fraud, thereby minimizing unnecessary chargebacks. Use tools and services that identify and flag suspicious transactions.
  • Educate Affiliates on Compliance: Educate affiliates on compliance requirements and how to minimize chargeback risk. Provide guidance on ethical marketing practices and ensure ongoing support and training are provided.
  • Implement a Dispute Resolution Process: Establish a clear and effective process for resolving disputes and claims. Handle any customer complaints or concerns promptly to avoid chargeback escalation.

>>>> Learn about cases of non-payment by affiliate marketing frauds here!!

Paying international affiliate marketers

International affiliate marketers often face unique challenges when processing cross-border payments. Here’s how to tackle these challenges:

  • Choose a Trusted Cross-Border Payment Solution: Look for payment processors that specialize in cross-border transactions such as Wire Transfer, Stripe, and Skrill. These processors often have established networks and can process international transactions more efficiently and reliably.
  • Understanding Currency Exchange Rates and Fees: Understand exchange rates and associated fees when making international transactions. Consider using platforms that offer competitive exchange rates and transparent fee structures.
Affiliate payment
Paying international affiliate marketers

In this article, AdsNextGen introduced some popular affiliate payment methods used in affiliate marketing. However, note that many other solutions exist and each method has its pros and cons. The goal of providing multiple payment options is to increase the trust and confidence of affiliates, allowing them to withdraw their earnings easily and securely. Hopefully, the information in the article has helped you better understand how affiliate marketing works and the affiliate payment methods you can use.

>> Learn More About Affiliates Networks Terminology:

 

Rate this post

Leave a Reply