How Currency Conversion Works on Ream

Bobbie

Last Update 4ヶ月前

Currency conversion takes place when your reader pays you in one currency and an author is paid out in a different currency.


Ream partners with payment providers and foreign exchanges to convert currencies seamlessly and enable readers to pay in over 130 currencies on Ream. In order to make this process happen, there are standard currency conversion fees that Ream charges.


For Ream Managed the fee is a standard 2.5% per transaction that currency conversion takes place. Currency conversion takes place in various instances, but typically happens when the currency a reader pays Ream in differs from the currency that an author is paid out to their bank account in.


This fee is standard across many online platforms and helps enable you to sell on one storefront to readers globally. Ream Inc is based in the United States and the settlement currency on the platform is USD. This means that regardless of what currency a reader pays us in, we must convert it to USD and then convert it again to the local currency of the author. This regulation enables Ream to be the business of record and thus liable for Sales Tax, VAT, and other associated fees.


However, this currency conversion inefficiency can sometimes lead to an increased number of transactions that currency conversions must be applied to for authors not located in the United States or paid out in USD.


For authors in the Direct integration, currency conversion fees vary based on the settlement currency and where your reader is located. Typically, currency conversion fees are lower than with Ream Managed due to the direct relationship authors have with their readers.

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