Blogging Online – Being Tortured by Internet Banks and Local Banking With Charges & Costs
Making money blogging and looking after money matters is a must! Imagine working your butt off and not being able to get to your money.
First and foremost, visit your Bank Manager and find out what legal requirements need to be adhered to when marketing over International Borders.
– Ask how much money you are allowed to receive or send in any one transaction or total value for a month.
– What legal forms may be required to declare payments being made or money received.
Whether marketing products you own, or selling another persons products for a commission (Affiliate Marketing). Have a clear plan on how to go about setting up banking online and clearing International cheques.
Did you know PayPal did not make payments to South Africa before the end of March 2010? Where you live is relevant, and you may have to look into various options with banking. Join local forums in your country to find out what other bloggers are doing to help solve banking problems.
What to look out for in the “small print”:-
• Bank charges for receiving money on your behalf.
• Sending money to you – what percentage of your earnings is this going to cost.
• Keep an eye out for additional charges in set bank “fees”
• When exchanging money over International Borders look out for what your foreign exchange value is on the day. This will be reflected on the banks website or just phone them and ask the Foreign Exchange Department what the rates are on the day.
Charges vary from bank to bank, normally reflected as a percentage of total amount transferred, so be sure to look at the cost involved before signing up. Some banks will charge a percentage, and add on an additional service fee.
Working over borders I have found that the charges incurred can add up to 10% of your earnings. That is a sizable sum especially when you are starting a new business.
So how is the 10% made up…..
1. You earn $50 from a sale – to receive $50 into your PayPal account at a cost of $2.25 is levied = 4.5% (2.25/50*100) or (50*0.045).
2. Moving the money into your local bank is at 1.5% of the value once the exchange rate has been calculated.
3. You may lose money depending on the strength of your currency in the International Market. Try to move money on a “good” day!
4. Bank Fees, plus local VAT or GST is added into the equation.
Moving money costs you – our local South African Reserve Bank law stipulates that money earned must be brought down into a local account within 30 days.
This means we cannot leave money a PayPal account to use at a later date. Wow, how is that for a skew “ball”.
Wake up – banks are out there to make money, you need to know how much. Each Country will vary, each Bank will vary, use this information as a guideline.