KDP Now Paying ALL Royalties By EFT

6 Feb

We don’t normally have posts with such newsy, matter-of-fact headlines on this blog, but last night Amazon KDP announced something important and I wanted to make sure you all know about it, although if you’re a KDP author and this affects you, you should have received the same e-mail I did. It’s bye-bye to foreign currency cheques and hello electronic funds transfer because KDP is now offering to pay all royalties, be they dollars, pounds or euros, into your European bank account.

securedownload-6

Up until now, I got three different payments from KDP each month: a US dollar cheque for sales from Amazon.com and a British pound cheque for sales from Amazon.co.uk, and royalties from Amazon.de sales (which were minimal; I think my best month ever there was €50) were paid directly into my bank because, being in Ireland, my bank account and Germany shared the same currency, the Euro.

Now I never really minded getting cheques, because I always thought it was wondrous thing that Amazon would allow me to sell my books on their Kindle stores and promptly pay me once a month to in the first place, and so I didn’t especially care how the money arrived. But I’ve been getting these cheques for three years now, and they do have their disadvantages. With one of them coming all the way across the Atlantic, they can take a while to arrive, and once, one got lost. (It was quickly cancelled and replaced by Amazon.) When I lodge them in my bank, it’s a bureau de change transaction, and sometimes they can take up to 5 weeks—5 weeks!—to clear. Also, these cheques are the biggest chunk of my income, so getting paid in such an undependable way wasn’t all that great either; some months they’d arrive by the 1st, another month it might be the 10th, sometimes Amazon.co.uk sent out their cheques in the middle of the month, just for laughs. (And once when this happened, I was in Nice Airport dutifully staying away from the shops when a text message informed me that this unexpected early cheque had arrived. I literally ran into the Duty Free. Toblerones for everyone!)

And I couldn’t switch to EFT, because Amazon would only do that when there was a currency match, i.e. my earnings were in the same currency as my bank account, which is Euro.

Until now.

Now they will convert my US dollars or UK pounds in Euro, and then pay them directly into my account. Hurray! Some people are logging onto their account and coming back telling me the options look the same, but just change the currency symbol to € first and the EFT option should pop up, as in the image below.

Screen Shot 2013-02-06 at 11.10.30

For some of you, the big benefit to this is that the threshold for payment will dramatically reduce. For cheques, it was $100/£100/€100. Now for EFT, it’s just the equivalent of €10.

I do have a query about whether this means less or more money (what conversion rate are they using? Is it real time? Will I gain what I was paying my bank in commission for a foreign currency exchange? Or is it my bank doing the exchanging anyway, when the money gets sent to them?). When these EFT payments start to arrive in April, I can easily compare the conversion rate to previous payments anyway, and see what’s up. But overall, I’m just happy there’s no more cheques.

Well, that’s no strictly true. There is still CreateSpace, who follow the same method since they started their European Amazon extravaganza: a US dollar cheque for Amazon.com/EDC sales, a UK sterling cheque for Amazon.co.uk sales and a Euro cheque for other European Amazon sales (with the same payment thresholds). I just logged in and it looks like nothing’s changed there, but we live in hope.

This situation change is true for Irish authors, but I wonder what changes KDP authors in other European countries are seeing. Let me know in the comments below!

39 Responses to “KDP Now Paying ALL Royalties By EFT”

  1. emiliehardie February 6, 2013 at 11:44 #

    Unless you live outside of the US, Canada, Japan or the EU (like the majority of the world’s population), in which case Amazon apparently believes that there is no such thing as electronic transfers. Its check or nothing.

    • catherineryanhoward February 6, 2013 at 11:53 #

      Well it was cheque or nothing for me until last night, and that was for the last three years! Presumably as time goes on there’ll be more and more countries offered the EFT option.

    • Paul February 6, 2013 at 20:55 #

      Thanks, as a New Zealander I have no problem banking my US$/GBP or Euro cheques (yet to receive a Euro one though) from Amazon. But was curious to know if they had offered EFT to anyone else.

      Also, speaking as a former bank employee I can tell you that EFT can have some massive fees on it. Amazon UK/Euro/US will have a correspondent bank for transfers to each country. That bank will take a chunk ($25 on average) as a processing fee for relaying your funds to your bank in what ever country. If you bank with the same bank as Amazon’s bank in your country – then they will only take $10 (approx) as a processing fee.

      • catherineryanhoward February 6, 2013 at 22:52 #

        It doesn’t seem like I’m responsible for any charge like that; perhaps Amazon is covering it. I pay 0.30 Euro to receive an EFT in bank fees and the payment goes into my account in full.

        • brokensea February 7, 2013 at 00:50 #

          Good to know. I’m suggesting worst case scenario (particularly for Telegraphic Transfers).

    • mark November 29, 2013 at 17:39 #

      I cannot understand your comment. Does Canada have the EFT option? Do you know?

      • emiliehardie November 29, 2013 at 21:14 #

        At the time of writing the comment, those were the ones I was under the impression had eft, but not having been an author there I can’t reliably confirm. Certainly, at the time, it was still cheques for those of us in Australia.

        The point I was trying to make was that the rest of the world is hardly so backwards that eft was impossible, and that there were some hefty fees involved with cashing non-Australian dollar cheques (ie all the ones from Amazon, again at the time since the new Amazon Australia store changes things somewhat). The cost of currency conversions on those cheques took such a hefty chunk that it sometimes wasn’t worth the bother.

  2. Zig February 6, 2013 at 11:48 #

    That’s great news! Thanks for letting us know Catherine.

  3. Nickp February 6, 2013 at 11:57 #

    That’s fantastic news, just gone and changed all settings 👍😊

  4. Russell Phillips February 6, 2013 at 12:15 #

    Interestingly, I haven’t had the email you mention. I’ve had UK and European sales paid via EFT for ages, but I’ve never been able to get US sales via EFT until just now. Thanks for the heads-up.

  5. Jaimie February 6, 2013 at 12:30 #

    I didn’t get the email from Amazon, but after seeing your post I logged in and was able to change the US$ cheque to EFT in £, which is great news for me! Thanks for letting us know, Catherine!

    • catherineryanhoward February 6, 2013 at 12:45 #

      That’s great! So it must also apply that if you’re in the UK, you can change Euro and US payments to sterling and get paid via EFT, right?

  6. catherineryanhoward February 6, 2013 at 12:44 #

    I think maybe you lot need to go check your e-mail notification settings for Amazon KDP…! :-D

  7. Karin Cox February 6, 2013 at 12:49 #

    Unfortunately, it’s still shitty cheques for us here in Australia. So frustrating.

    • catherineryanhoward February 6, 2013 at 13:00 #

      As I said to another commenter above, I’m sure your day will come too! Surely it’s easier for them to pay everyone electronically…? Here’s hoping!

  8. Linda Acaster February 6, 2013 at 14:04 #

    Thanks for flag. I’m in the UK and didn’t receive an email from Amazon either, but have just been into my KDP account and changed AmUS/India for payment in sterling EFT. No more bank charges! (Sorry Australia, hang in there)

  9. Sean Walsh February 6, 2013 at 15:19 #

    Yes, but in the case of a payment in $ from Amazon.com will they still deduct the U S Treasury tax if I have not applied for exemption as an Irish citizen? (No, I have not applied; to be honest, I’ve forgotten how to do it. Is there a link you might let me have, and oblige?.. Thank you, Catherine…

  10. mikeormsby February 6, 2013 at 16:14 #

    Thank you Catherine, for the good news.

  11. David Penny February 6, 2013 at 19:25 #

    This is great news, Catherine. It has always annoyed me because each single cheque (or perhaps that should be check) I get charged £8 to cash into an American dollar account!

    However, Createspace has already been paying me by EFT for the last year. Maybe it’s different in Ireland, but I’ve been getting a regular (though small) payment every month. They were also great when I asked NOT to be paid, so I wasn’t taxed at 30% on that portion of my income before I got my ITIN.

  12. elle strauss February 6, 2013 at 21:07 #

    Thanks for posting, I hadn’t heard. Great news!

  13. Martin Lake February 6, 2013 at 21:48 #

    This is excellent news. I hope Paul’s gloomy forecast of the charges doesn’t affect EFT transfers. I’m glad that the system has changed although I did rather like getting cheques from Wells Fargo. So much more romantic than EFT.

    • catherineryanhoward February 6, 2013 at 23:12 #

      The lack of romance for new self-publishers did occur to me. It’s lovely getting your first income-from-writing cheque from Amazon! Novelty wears off quickly though…

  14. Wo3lf February 6, 2013 at 22:04 #

    Ah, damn, I’m in New Zealand, so still cheques for me. Unless I can make heaps of money and move to the south of France. Then I can get paid by EFT. Wonderful! I wonder how many cheques that will take?

  15. Tahlia Newland February 6, 2013 at 23:10 #

    Damn, they’re still not doing it for Australia, and it costs me $15 to bank each cheque. That’s quite a bit of income I lose because of their antiquated system. That hey’re doing it for the UK and Europe is a good sign though, hopefully we’ll be next.

    • catherineryanhoward February 6, 2013 at 23:13 #

      That’s crazy expensive! Here’s hoping KDP rolls out worldwide EFT soon.

    • Diana G. Hopkins (@DianaGHopkins) July 7, 2013 at 12:41 #

      Hi, sign up for payoneer card (this is my ref link http://bit.ly/13tTDKm) You will receive your payment directly from Amazon via EFT in your Payoneer Master Card that you can use at any ATM where MasterCard is accepted, anywhere in the world. If anyone else wants to sign up for Payoneer, feel free to use my ref link. Thanks.

  16. Dan Harris February 7, 2013 at 17:12 #

    Thanks for posting this, Catherine – I didn’t get that email, for some reason, but I’ve now updated my KDP account to get my Amazon.com royalties by EFT into my UK account. Grand!

    On the Createspace bit, I was able to choose to have all of my royalties ($, £ and Euro) paid by EFT into my UK account. If you’re check-only, is that just an EU/Ireland thing?

    • catherineryanhoward February 7, 2013 at 18:59 #

      I think it must be. I’m pretty sure I had an e-mail exchange with them a while back about it and they said they couldn’t do EFTs to Ireland. :-(

  17. Sally Clements February 7, 2013 at 22:00 #

    I saw this too, and instantly did the ol’ switcheroo, then had a frothy coffee and a yay to celebrate!

  18. Hiten February 12, 2013 at 10:56 #

    Hi Catherine,

    Firstly, I just wanted to say so far I’ve been a quiet follower of your blog. You are one of my inspirations in the self-publishing area and I have learnt a lot from your blog posts. I really learnt a lot from your post on getting an EIN and I followed the exact steps in your post and got the result I wanted.

    On this current post. It’s interesting because I found about Amazon paying directly through EFT to European bank accounts just this morning on a Kindle forum. I went into my KDP account and I too, as a UK publisher can now also select EFT!

    I’m quite excited as this means I won’t have to deal with all the checks and the time it takes to do so.

    Thank you.

  19. Sam April 22, 2013 at 22:16 #

    This is good news and something I’ve only just stumbled across after having to deal with my first check from Amazon US. Adjustments made to account preferences. Thanks!

  20. Ann May 22, 2013 at 12:56 #

    Quick question for UK writers – Are you choosing to receive payments to your uk banks in GBP or USD (US) / Euro (europe)? Looks like I’m losing a lot on conversion rates having selected to receive payments to uk from Amazon US in GBP – anyone else have any experience of this? I wonder if its better to select the payment currency of where the sales are made.

  21. sm753 November 12, 2013 at 16:14 #

    QUIDS IN! thanks – not only have i changed from cheque to EFT – but I also have successfully got my very own EIN so saving loads-a-money from advice from this blog:)

  22. mark November 29, 2013 at 17:34 #

    Can someone tell me if Canada has the EFT option? I can’t tell, no matter how long I stare at the market menu.

Trackbacks/Pingbacks

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