If you’re dealing with different currencies, banks have to be heavily involved. This could impact you in two ways:
- Extra conversion or banking fees.
- Speed of receiving your money.
What could impact my payouts in a different currency?
- Your bank account needs to be able to receive your preferred currency.
Banks often charge a fee for accounts that accept multiple currencies. If your bank account cannot receive your preferred currency, the bank will automatically convert the amount into your default currency and will most likely charge you for this.
- The use of intermediary banks.
Banks use an intermediary bank whenever two banks have not established a financial relationship. This often happens with international bank accounts and foreign currency transactions. Sometimes the transfer needs multiple intermediary banks.
What could happen when intermediary banks are used?
- When using intermediary banks, SWIFT is used, which is significantly slower than SEPA. It can take up to two business days before you receive your money.
- The intermediary bank can charge a fee to your bank for processing the transaction. Your bank will forward these costs to you.