How Affiliates Can Handle Payments and Payouts Without Issues

Discover why common challenges in getting your affiliate payments and payouts happen and practical strategies to avoid issues.

If you’re into affiliate marketing, you’ll agree that it’s an effective business model for organizations and enterprises to acquire new customers and increase sales. In 2023 alone, affiliate marketing spending reached $14.3 billion globally. This success is attributed to marketers working tirelessly to promote brands and deliver results toward these goals. The appeal of affiliate marketing programs is that they span many industries—Gaming, crypto, Cannabidiol (CBD), and even adult businesses. Interestingly, 81% of affiliates do their best to drive brand awareness and generate substantial sales for the companies they represent.However, when receiving affiliate payouts, these individuals face frustrating delays, sky-high fees, and sometimes outright rejection from traditional payment processors. This isn’t a good thing, yet it’s the reality many affiliate marketers face when working in these “high-risk sectors.”Why does this happen? What can help? This guide discusses the challenges faced by affiliate marketers and how Narvi offers an excellent alternative for those struggling with payment problems.

Getting Down to the Matter:

Affiliate Marketing: The Backbone of Sales Across High-Risk Industries

Affiliate marketing programs are essential to the success of countless industries. They attract customers and generate sales by using affiliate links, creating content, and driving traffic to merchants’ websites.This is especially true in the Gaming and crypto space, where those in affiliate marketing contribute massively to a brand’s bottom line. They deliver measurable results in competitive markets where traditional advertising may fall short. However, it’s not always a leisurely walk in the park, as payment challenges constantly threaten these affiliates’ success and make it difficult to maintain cash flow for their operations.

The Struggles Affiliates Face

Despite their vital role, affiliate marketers in high-risk industries face constant hurdles related to payment systems. Many affiliates struggle to:

Receive payouts promptly due to outdated, inefficient payment systems and encounter delays or rejection.
Avoid excessive fees from traditional payment processors.
Find adequate support, as mainstream providers like Wise, PayPal, and Payoneer often fail to meet these industries’ unique needs.

International affiliates face more challenges in regions like Europe, which have stricter banking regulations.These regulatory limitations mean that financial institutions and payment processors are reluctant to work with these “problematic sectors,” leaving marketers with no way out.

1. Guilty by Association: A Core Problem For Affiliates

High-risk sectors like crypto and Gaming often face a particular stigma in the financial sector. This usually results in payment systems denying services to affiliates based on the nature of the industry rather than the legitimacy of the business—even though affiliates' product is marketing, distributing a blog post after a blog post, and generating web traffic.This guilty-by-association mentality isn’t good enough. The consequences are severe: affiliates face difficulties accessing essential banking services, making receiving payouts efficiently or managing their businesses almost impossible. Accepting cash payments, gift cards, or store credit from overseas clients is inefficient. This problem, left unsolved, threatens any successful affiliate program.

2. Limited Access to Reliable Payment Methods

Affiliate marketing users often face denied payouts and rejected bank account applications. They find themselves without access to trusted payment methods that financial institutions offer, such as bank transfers (wire transfers).Consequently, they’re forced to rely on inefficient alternatives, e.g., their PayPal account or other remittance services, resulting in unnecessary delays or lost opportunities.

3. Payment Card Issues

Cards are one of the most sought-after payment methods, providing users with a convenient way to access their funds and make payments. However, affiliates in high-risk industries often struggle to use this method because banks and payment processors are reluctant to issue them. For example, if a bank knows that an affiliate operates in the Gaming industry, it’ll likely not issue a card or freeze any existing ones. Google Ads and Facebook (Meta) Ads sometimes don't accept affiliates' cards—so if you need to keep buying traffic, tough luck. This creates a significant problem, leaving affiliate firms with few alternatives for receiving and utilizing their earnings and reinvesting the profit.

4. High Fees and Processing Times

Many payment processors impose exorbitant charges on payments, particularly for international affiliates. In addition, wire transfers or PayPal can result in extended wait times for funds to be processed. So, business owners have less money to reinvest in their campaigns.

5. Crypto Conversion Barriers

Crypto payments are an attractive option for many affiliate marketers. But converting it all into fiat money and offramp into a bank account—enough to cover business expenses or pay staff—can be a frustrating experience. A non-crypto-friendly bank will flag a transfer to or from a big international exchange and process it for days or weeks.Also, most payment processors find it challenging to send crypto into traditional bank accounts or PayPal wallets, especially those involving large sums.

6. Fraudulent Payout Practices

Unfortunately, some affiliate marketing programs are not all legitimate. They engage in shady practices, withholding payments without just cause or reason. This puts legitimate affiliates in a helpless position, which leads to lost time, earnings, or a fractured trust with the affiliate network or the brand they work with.

Exploring Existing Payment Solutions and Their Limitations

Today, many affiliate marketers rely on PayPal alternatives or the usual bank transfers to receive affiliate payouts. While these methods are generally accessible, they come with unique challenges.

PayPal and Payoneer: High Fees and Limited Support

While these e-wallets are used in affiliate marketing programs, they’re far from perfect. Some key issues users face with these platforms include:

High fees that go into commissions.
Limited support for high-risk sectors like crypto or Gaming
Restrictions on affiliate commissions in specific industries make it difficult for affiliates to receive payments.
A digital wallet is not enough to run a company smoothly—it doesn't replace a bank account.

Bank Transfers or Wire Transfers

These payment methods are more secure but often have extended processing times, especially when dealing with international affiliates. And it gets trickier: traditional banks can face regulatory scrutiny in high-risk industries, resulting in accounts being flagged or even frozen.

Crypto Payments

These offer a compelling opportunity for affiliate marketers to receive payment faster and with fewer geographic restrictions. However, they come with their own sets of problems:

Difficulty in finding a compliant payment processor.
Complicated conversion of crypto into fiat without facing excessive fees or delays.
You still need access to fiat to pay taxes and other business expenses.

Outdated Payment Systems: A Widespread Problem

Many affiliate programs and ad networks rely on outdated payment infrastructures designed primarily for merchants rather than individual affiliate marketers. This results in:

Poor handling of affiliate payouts, leading to delays and inefficiencies.
Rigid commission structures that fail to meet affiliates’ needs.
Affiliates are forced to juggle multiple platforms, complicating financial management and delaying payouts.

These challenges force affiliates to juggle multiple platforms to receive commission payments, complicating financial management and delaying cash flow.

Steps to Resolving Affiliate Payment Issues

Affiliate payment challenges can disrupt operations and create unnecessary stress for marketers. However, solutions exist! Resolving these issues requires clear communication with your network, conducting adequate research, and adopting a systematic approach. Explore these five steps to navigate common affiliate payment problems effectively: 1. Communicate with Your Affiliate Network If payment delays occur, start by contacting your affiliate network’s support team. Provide them with detailed information about the issue, including dates, amounts, and payment methods. Open and proactive communication can often lead to quick resolutions. 2. Review Affiliate Program TermsConduct a detailed audit of your activities to ensure compliance with the program’s guidelines. To avoid disputes, ensure your promotional methods and practices align with the affiliate terms. Additionally, check your conversion tracking setup and make sure it’s properly implemented and functioning effectively across all your promotion channels.3. Monitor Payments and Keep RecordsThis step involves maintaining detailed records of your affiliate activities, including referral dates, conversions, and payment details. Having this documentation ready helps identify discrepancies and provides evidence for your claims. Furthermore, monitor your payment updates on the affiliate dashboard regularly. Staying proactive lets you detect delays or changes in payment status early, enabling swift follow-up actions. 4. Seek Legal Advice if NecessaryIf you suspect unfair treatment or wrongful withholding of commissions, consult a legal professional familiar with affiliate marketing. Understanding your rights can help you navigate disputes confidently. 5. Explore Alternative Payment OptionsIf payment issues persist, diversify your payment methods. Look into reliable payment platforms or affiliate networks with a reputation for timely payouts. You can also negotiate direct payments with merchants. Arranging direct deposits or other secure methods may offer a more consistent and efficient solution.

Narvi’s Tailored Solutions for Affiliates

Despite the prevalence of existing payment processors and affiliate marketing programs in many mainstream industries, they cannot adequately cater to all, especially high-risk sectors.This calls for an alternative banking solution to revolutionize how users receive their payments and pay for the services they need. And that’s precisely where Narvi comes in. We change the game for affiliates by providing innovative payment solutions designed to solve the issues faced in high-risk industries. Here’s a look at how we stand out:

Streamlined Payment Process

Meet an affiliate payment system that is faster, more flexible, and more reliable. Thanks to the Single Euro Payment Area (SEPA), affiliates can enjoy instant wire transfers as their preferred payment method and say goodbye to delays and hidden fees. SWIFT transfers in euros, US dollars, or other major currencies are available as well for transfers outside the EU.

Crypto OTC Desk

For affiliate marketing users who prefer crypto payments, Narvi’s crypto OTC (over-the-counter) desk makes it easy to convert these digital assets into fiat securely and offramp fiat to their Narvi bank account. This service eliminates the complications of transferring funds to traditional bank accounts or PayPal.

Upcoming Payment Cards

Narvi is set to launch payment cards designed for affiliates. These cards will provide an easy way to access funds without relying on conventional means like wire transfers or bank deposits. This will be game-changing, especially for those working across multiple countries and needing a flexible, international payment solution.

Alignment with Regulations

Narvi ensures full compliance with the EU’s AML (anti-money laundering) as well as the Markets in Cryptoassets (MiCA) Regulation, providing a framework for financial and crypto activities. Affiliates operating in the crypto sector can trust that their transactions align with these evolving regulatory standards, fostering security and trust.

Flexible Commission Structures

Narvi’s payment system is adaptable to the needs of different affiliate programs. This means that users can earn higher commission rates, boost their conversion rates, and scale their operations without worrying about payment complexities getting in the way.

Low Fees for Affiliates

Unlike traditional payment institutions, Narvi offers low and clear transaction fees. Whether through SWIFT payments or direct crypto conversions, affiliates can keep more earnings. This leads to better cash flow management and increased profits.

Can Narvi Provide The Preferred Payment Method for Affiliates?

Is Narvi The Preferred Payment Method for Affiliates?Many affiliates find themselves at a crossroads, wondering if a new neobank fits their payment needs. If you feel that way, here are a few perks that Narvi brings to take your marketing game to the next level.

Enhanced Flexibility for Affiliates

A standout feature of Narvi is flexibility. Whether you’re a new user looking to join a marketing network or an experienced one managing different programs, our payment platform caters to your unique needs. Thanks to the multiple payment methods available, you can receive timely and secure payouts.

Seamless Payment Details and Faster Payouts

We provide a hassle-free experience for affiliate marketers. The ability to easily track commission payments and ensure payment details are always accurate means fewer mistakes and faster payouts.Choose a Banking Partner That Gets YouAffiliate marketers operating in high-risk industries face unique challenges when it comes to receiving payments. From issues with debit cards to crypto-off ramping and slow wire transfer complications, these affiliates try to navigate financial obstacles that traditional systems are not designed to address.Narvi is the game-changer that affiliate marketers in high-risk industries have been waiting for. We are committed to providing secure, efficient, and flexible payment methods, ensuring that affiliate payouts are processed quickly and reliably. Whether in crypto, Gaming, CBD, or any other industry underserved by traditional banks, we have the tools and support to help you thrive.Say goodbye to delays, high fees, and complicated payment structures. With Narvi’s easy-to-use platform, affiliate marketers can access their earnings in a way that works best for them, allowing them to focus on growing their business and increasing their sales. Make that switch today and experience the future of affiliate payments.

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Published December 9, 2024Author:

Ayomide Adeleye, a writer with a strong focus on finance and technology who contributes to Narvi on the topics of banking services and select industries such as igaming and cryptocurrency.