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  1. #1
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    Angry Foreign Currency Exchange Calculations
    I'm running a campaign of sales on CJ and they pay with GBP currency.
    So per each sale they pay 10 GBP.
    Run google search on "Exchange Rate" and you will find this website:
    http://www.xe.com/ucc/
    But you can try others if you don't believe me:

    10 GBP = $19.59 USD
    CJ paid me $18.99 USD
    (The sale was generated less than 1 hour ago and the currency exchange shown up is from 1 hour ago as well)

    Why do they do that?? They already take fees from the advertisers!

  2. #2
    Troll Killer and best Snooper!
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    It's extremely unlikely that CJ will pay you the exchange rate that's current at the exact moment the check is cut. That would entail an enormous amount of work on their part and sometimes it would work in your favor and sometimes it wouldn't.

    What you need to do is find out how CJ calculates exchange rates for the purpose of cutting checks and make sure they adhere to that method. Some companies average the previous day/week/month, some companies use the previous day's closing exchange rate, etc. What's important is that CJ always uses the same method.

  3. #3
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    For CJ money goes like....

    Thanks for the tip

  4. #4
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    In this case, the rate isn't unreasonable... unfortunately you will have the same experience if you go to the bank to convert the GBP to USD.

    The commonly quoted rate is the mid-market spot rate, but that isn't what you receive from financial institutions:

    "Individual investors typically do not have direct access to Interbank foreign exchange rates, as these figures are used primarily by institutional entities and require accreditation for access. In actual practice, individual traders will obtain rates from a commercial bank that participates in the foreign exchange marketplace. The quoted spread will be often be slightly larger than normal, allowing for the bank to make a commission on the trade."

    Here's more info: http://www.xe.com/faq.php#midmarket

    It's not a CJ, or network issue, but it can still be very frustrating, I know.. especially for us here in Canada, as our dollar strengthened! Many Canadians don't realize that the credit card companies make a profit on USD purchases (using the spread above) but ALSO add a % surcharge.

  5. #5
    Newbie G-WebServices's Avatar
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    Black Market Vs. Official Exchange Rates
    I do a lot of traveling and exchange rates are a tricky topic.

    1st of all there are always THREE different exchange rates (at least).

    a) The OFFICIAL exchange rate for a particular currency
    b) The BUY rate offered by money exchange houses
    c) the SELL rate offered by money exchange rates.

    If you take out money in a foreign country via an ATM using your US account you would get the Official rate but you would get charged a high ATM transaction fee.

    If you decide to purchase a foreign currency at an exchange house you would pay a certain amount.

    If you have foreign currency and want to purchase dollars you would receive a certain amount.

    d) there is also the Black Market rate. This is usually the supply and demand rate on the street. And money exchange houses usually base their BUY and SELL rates while looking at both Official rates and Black Market Rates.

    Hey, currency exchanging is a business. The amount you got is actually VERY FAIR.

    I don't want to insult you in anyway but I personally feel that you shouldn't label someone a thief until you've found out things from every possible angle.

    Hope this makes you feel better.

  6. #6
    Newbie G-WebServices's Avatar
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    P.S. I forgot to mention that I am in no way affiliated with CJ, nor do I know who they even are. In fact, I am a newbie in this forum that is just starting to learn about affiliate marketing myself. Hope some of you can give me a push.

  7. #7
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    Quote Originally Posted by teezone
    It's not a CJ, or network issue, but it can still be very frustrating, I know.. especially for us here in Canada, as our dollar strengthened! Many Canadians don't realize that the credit card companies make a profit on USD purchases (using the spread above) but ALSO add a % surcharge.
    To me it is a CJ issue because some banks offer a service where companies can link up with the official exchange rate down to the near millisecond (although with some network latency, of course). They often work with ecommerce sites. Moneris, for instance, is part of the Royal Bank (I think) and offers payment processing with very timely FX rates. When I worked with them for some sites I didn't notice such a large discrepency, so I wonder if CJ is:

    a) Not paying for such a service, rolling their own FX system which may always be hopelessly and significantly lagging behind market rates.
    b) Paying for such a service, but building a fee into the commission.
    c) Rolling their own AND building a fee into the commission.

    I went to check out their help docs for more info but, whaddya know, they're down again.

    PS: Or d), paying for such a service, only the service is crappy.

  8. #8
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    This is not unique to CJ, I will actually defend them in this case (a first for me to defend the networks, lol!)..

    I've spent 10 years in the investment business, 7 in the fixed income/fx side of things. While you may be correct they are building in % fee/surcharge, so is every other company that provides any sort of payment service. And CJ is providing a service.. they act as a clearing house for the merchants & affiliate. As I said, many people don't realize the credit card companies actually take a % surcharge on TOP of the retail rate.

    In all probability, CJ is passing through an accounting rate that is auto-updated from their own banking source. Plus (and I know this from my own business), transactions in other currencies carry a higher fee structure. So when I deposit US dollars to my US account, I pay a higher fee than a comparable CAD deposit to my CAD account.

    Exchange rates aren't just pass-through numbers, there is a transaction to convert, even though we (on the retail side) don't see it. It's the main reason I opted to keep separate US & CAD accounts.. now if only Canadian banks would allow GBP business accounts...

  9. #9
    Moderator MichaelColey's Avatar
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    I agree that the thread title was a little over the top. I've changed it to a more descriptive title and have left the original title (was: ...) for now so that those who participated in it can find it.
    Michael Coley
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  10. #10
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    Quote Originally Posted by MichaelColey
    I agree that the thread title was a little over the top. I've changed it to a more descriptive title and have left the original title (was: ...) for now so that those who participated in it can find it.
    You're actually right, you can take off also from the title the "(was: A bunch of theives!!!)"

    TY

  11. #11
    MasterMike HardwareGeek's Avatar
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    you have to remember xe.com is updated live (if i am not mistaken)

    I am sure there will be a day where the xe rate will be lower than what cj pays

  12. #12
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    I have found CJ to be quite reasonable on exchange rates since I have my US commissions converted to AU before been credited to my account. Linkshare's system is by far the worst with exchange rates, I usualy end up losing quite a huge chunk out out of my checks that goes to their banking system who use rates about 5 -7 % higher than what the current exchange rates are. for Example if the AU/US dollar is around 89c per dollar, Linkshare will convert it at about 95c/ per dollar. that can work out to quite a bit of a loss sometimes. I'm thinking of going back to checks for Linkshare so I can bank them into my US currency account and avoid this fraud.
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