What Currency Do You Use for Member Upgrades?

[System0]

I wrote an article a few weeks ago that detailed my frustrations with PayPal charges. I am based in the UK. So any payments received will incur a 2.5% conversion fee after they have applied their 3.4%+$0.30 fee. I could potentially lose over a thousand pounds to this conversion fee over the course of a year.

I am considering charging in UK pounds. My hesitation is that US dollars is the unofficial currency in internet marketing. Many people are accustomed to paying for things in US dollars - themes, plugins, add ons, eBooks, courses, etc.

I have always assumed that a percentage of people would not buy a product or service if it was priced in Euros, UK Pounds, Australian Dollars, or whatever. I do not, however, have any evidence to this.

What currency do you all charge in: US dollars or your local currency?

It seems like a waste to me to be paying additional fees to PayPal, but I don't want any potential customers from being put off by me charging in UK pounds (or when Scotland gets independence, Scottish sheckles )

Kevin

 

[karll]

On my board the members can choose which upgrade to buy, one is in US dollars and the other is in UK pounds. Whichever they choose, they're upgraded to the same usergroup.

 

[System0]

A friend of mine suggested the same thing. From a member's point of view, I think it would be great to offer members the option of paying in US dollars, UK Pounds, and Euros.

From my own point of view, it does not really remove the problem of conversion fees, as most people outside of the UK would choose US dollars.

Do you monitor exchange rates closely? I imagine that from time to time, members would choose one currency over another because it works out to be much cheaper to choose the one with the better exchange rate.

 

[karll]

From my own point of view, it does not really remove the problem of conversion fees, as most people outside of the UK would choose US dollars.

True, but at least you'll have some UK pounds that won't need to be converted, assuming that is the currency you favour.

My board is not-for-profit, so I put everything I make back into the board by purchasing new add-ons etc. Sometimes add-ons are sold in US dollars, sometimes in UK pounds. So it helps to have a little bit of both. Well, that was my plan, anyway.

Do you monitor exchange rates closely? I imagine that from time to time, members would choose one currency over another because it works out to be much cheaper to choose the one with the better exchange rate.

No ... Thanks for reminding me! I should check.

 

[System0]

I currently have four forums, but the one I am devoting my attention to is a for-profit website; so I need to think long term about keeping costs down etc.

At the moment, the exchange rate for US dollars is terrible, which means that I am losing out even more

 

[Moshe1010]

You can monitor where most of your clients are coming from, do choose your currency by that information.

 

[System0]

At the moment, it is fairly spread between the USA, India, UK, and other European countries. I don't want to put too much emphasis on that as the forum is still newish and the demographic will undoubtedly change over time.

 

[DaveM]

I don't know how the exchange rate affects the payment coming in as it should only affect those making the payment. If I look at my exchange rate 10.00 USD = 106.275 ZAR so today it would cost me R106.27 but tomorrow it may cost me more or less. The end party is still getting their $10 US either way if you stay in the US but if you stay in GB then make it in your own currency. You would only lose if your payment is in any other currency than what you using where you stay. Then it may also be more the one day then the next.

 

[System0]

Hi Dave,

I was referring more to the exchange rate when converting to UK pounds. I currently charge in US dollars, not UK pounds. The reason I do so is because most products in internet marketing are charged that way. Hence my dilemma. I am concerned that by switching to UK pounds, some people may not purchase a membership. I am sure this is a small percentage of people, if any.

Today, XE.com reports an exchange rate of 1.67874 dollars to the pound. That's awful. For $100, I get around £59.57. Taking away another 3% of conversion fees and charges, I am left with £57.78. And that does not even take into account PayPal's fees. This drops the money I receive down to £55.70.

Kevin

 

[DaveM]

Hmmm ... yes I now see what you saying. From my side I am so used to paying for anything on the net in another currecy besides my own it makes no difference. What I do is just do a mental conversion to that currency to see what my cost would be. For you I would say do it in your own currency and see how it goes.

 

[System0]

Yeah I might add an option in my own currency and see how it goes.

Out of interest, does anyone know what happens if a member upgrades to a particular upgrade option and then that option is modified.

For example, say I have one member who is on a $9.99 per month upgrade plan. If I change the price to £6.99 per month, I assume that the member would continue to pay the former price of $9.99 until he cancels his membership.

But what happens if an upgrade option is completely removed? Does Xenforo automatically cancel their subscription?

 

[Moshe1010]

You can make an add-on that would show up a different currency based on your users IP (let's say by using pages).

 

[System0]

I think an add on such as that would prove very popular. I don't think anything is available just now.