Welcome to WebmasterWorld Guest from 3.234.214.113

Forum Moderators: martinibuster

Message Too Old, No Replies

UK Adsensers and the US Dollar exchange rate

     
4:26 am on Mar 4, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:Oct 10, 2004
posts:43
votes: 0


My situation is this - I'm a UK advertiser and have a Google Adsense cheque sent to me every month (usually receive it the 1st of every month). I save up my cheques until I have 3 and then bank them

The best deal I've found so far is banking my cheques with Barclays (who I have a current account with). They charge me just 9 for as many cheques as I want (in this case three)

My question relates to the strength of the Dollar .. as I type the rate is 1 = $1.90691 ( www.xe.com )

Are there any economic forecasts as to whether the Dollar is expected to slide further or recover? Am I better off getting Google to hang on to my cheques and then bank them later in the year, when perhaps they will be worth more in UK Pounds Sterling?

Also, would it be to my benefit to open a US Dollar account with Barclays, and just stick my cheques into that?

4:50 am on Mar 4, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Jan 12, 2004
posts:961
votes: 0


If you could predict the market you would make millions. You can't. Don't try. But don't be on a recovery. Just cash your money as soon as you can so you have control over it.
6:20 am on Mar 4, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:June 10, 2004
posts:2076
votes: 0


NatWest charge me $10.50, and likewise I can pay in several cheques for this. I personally cash them asap.
7:05 am on Mar 4, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:Jan 30, 2005
posts:81
votes: 0


$10.50 and 9 makes a huge difference. I will go to NatWest then.

I'm still waiting for my first adsense cheque, it's been 3 months now. What can I do?

9:00 am on Mar 4, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Apr 27, 2004
posts:368
votes: 0


Don't wait too long to cash those Google checks - most US checks I receive expire after 6 months.
Given that you bank has to post your check from London back to the issuing US bank to clear you should allow at least a month for this to happen.

If you think $9 is high you should see what they'll charge you if the check does not clear!

9:03 am on Mar 4, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:July 9, 2003
posts:408
votes: 0


Lloyds TSB charge me 8 for as many cheques as you want - and it usually shows in my account in under 5 days - I just tend to bank them as soon as possible as well.

<added>just noticed that was $10.50 not - that's a good rate</added>

9:49 am on Mar 4, 2005 (gmt 0)

Junior Member

10+ Year Member Top Contributors Of The Month

joined:Feb 16, 2005
posts:108
votes: 0


I agree Lloyds are one of the best. They charge 8, which is cheaper than some banks. Good thing about them though is the quick time they take to get the money in your bank. Paid my cheque in on Tuesday, 3 days later the money is in my account - Excellent =)

I was with the Halifx, but they charge 10 per cheque (and that starts at cheques over 50!), and they take like 3 weeks to get the money in your account. I think it depends on if it's a bank or building society. Lloyds has masses of resources, and thus is quick, while Halifax has to send their cheques elsewhere to get it done.

In terms of the US exchange rate, I looked into all the options about waiting, opening a $ account etc. I decided it wasn't really worth it. Yes if you wait it could be a better rate, but then again it could get much worse. However my cheques are only just into three figures a month, so the exchange rate loss doesn't matter as much as say someone who is getting 4,5 or 6 figure sums per month.

11:24 am on Mar 4, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:June 10, 2004
posts:2076
votes: 0


<added>just noticed that was $10.50 not - that's a good rate</added>

Sorry - I goofed. it is 10.50 NOT $10.50

11:29 am on Mar 4, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:July 21, 2003
posts:899
votes: 1


I live in Belgium and the US dollar to Euro exchange rate is also terrible.

If the dollar would go up to the same level as 2-3 years ago I would earn a quarter more.

12:15 pm on Mar 4, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:Oct 10, 2004
posts:43
votes: 0


Thanks for the replies!

Actually I think Barclays charge 2.5% (with the minimum charge being 9). I'm just about earning 3 figures a month, so when my earnings increase it might be worth my while to bank my cheques with a different UK bank.

I always thought Natwest was a bad place to bank my US Dollar cheques... Last time I enquired I seem to remember the commission they took was massive. Myabe things have changed... I'll double-check next week

Haven't looked at Lloyds bank before.. again I'll find out before I bank my next Google cheques

3:31 pm on Mar 4, 2005 (gmt 0)

Full Member

10+ Year Member

joined:Oct 4, 2004
posts:289
votes: 0


We're with HSBC and they operate a sliding scale according to the value of the cheque. Think it's around 15 - but not sure if they allow multiples as we always cash it as soon as it arrives.

Try asking the bank to cash the cheque via 'negotiation' that way the money enters your account immediately, and you just agree to pay back the money if the cheque was the bounce in the future.

3:51 pm on Mar 4, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:Oct 27, 2004
posts:192
votes: 0


I bank with HSBC and they cash all my cheques via 'negotiation' for a charge of 10. Its great to get the money in your account immediately, plus I get written confirmation sent out to me a day later (good for bookkeeping)

If you are UK based and receive cheques from Google I really don't think there is a better bank than HSBC at processing and sensible charges.

4:00 pm on Mar 4, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:May 19, 2004
posts:174
votes: 0


Another solution :
If you don't 'need' the money immediately, just open an account in USD. Put your Google-checks on your USD account, and wait. The day you think the Dollar is beter against your local currency, convert it to your normal account (or the day you need it). Nobody can predict the dollar-rate, but now he's low (can go lower) so one day it must go up.
4:14 pm on Mar 4, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Aug 26, 2003
posts:568
votes: 0


However doing this will cost you something in the region of $39/check. Well at least this was my case with NatWest. I now switched to Barklays and will be depositing 5 checks next week, I'll keep you posted if they're any better.
4:16 pm on Mar 4, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:Apr 27, 2004
posts:368
votes: 0


If you can open a USD account inside the US you will get the benefit of their Banks national check clearing network.

I looked into this but the cost was too high considering most of my payments are made by companies who understand technology i.e. don't issue checks!

4:17 pm on Mar 4, 2005 (gmt 0)

Senior Member

joined:Oct 27, 2001
posts:10210
votes: 0


Nobody can predict the dollar-rate, but now he's low (can go lower) so one day it must go up.

But will it go up enough? I've been around long enough to remember when the U.S. dollar was worth four Swiss francs. The dollar has had its ups and downs over the years, but it never got back to that four-francs-to-the-dollar rate (or anywhere close).

From the articles that I've read, it sounds like the dollar's trend over the next few years is likely to be downward or at least not upward. Don't forget that the U.S. government has gone from a budget surplus at the end of the Clinton years to a massive budget deficit, and any balance-of-trade gains from a falling dollar have been nullified by a growing reliance on foreign suppliers for everything from consumer goods to oil to business and industrial products. Foreign investors are getting nervous, and if a country like China or South Korea starts moving significant amounts of money into euros from dollars, the dollar is going to get smacked hard.

Bottom line: Banking your dollars in the hope of a recovery is a high-risk strategy. (I'm just glad that I earn a significant chunk of my income in euros!)

5:33 pm on Mar 4, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:Oct 10, 2004
posts:43
votes: 0


Barclays bank my cheques via 'negotiation' and I think it takes approx. 5 days to show up in my account

I think being charged just 2.5% (minimum 9) - regardless of how many cheques you bank - is pretty reasonable.. I'm banking 3 cheques every quarter

5:55 pm on Mar 4, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:June 6, 2003
posts:395
votes: 0


Living closer to the beast ( In Canada) I strongly suggest you cash all US checks right away. Unless the USA gets its fiscal house in order I can't see a rise in the dollar being anything but a short term blip. ;~)
6:59 pm on Mar 4, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:Jan 30, 2005
posts:81
votes: 0


I'd hope that Google allow paypal in the near near future.

If i were to convert $100 into sterling, i would lose 25% for bank charges. How's that fair?

1:50 pm on Mar 7, 2005 (gmt 0)

New User

10+ Year Member

joined:Feb 28, 2005
posts:17
votes: 0


I pay my cheques into my Natwest current account. I'm charged 5.50 or 10.50 if the cheque is above a certain amount ($500 I think). What I like about the Natwest is that the money appears pretty rapidly - about 7 days is normal now. I'd be wary about banking a dollar cheque from an untrusted source though, as I believe you'd end up reimbursing the Natwest for the entire sum if the cheque bounced.

As well as adsense I run a software download site that charges in dollars. When I started in 2002 the exchange rate was about 20% better. So I get less dollars now, but I got to thinking that the product will now look cheaper for European customers, so selling more to them would offset the exchange rate loss. This might also apply to adsense - perhaps European advertisers will now spend marginally more per click if they're priced in dollars?

In the medium term the dollar could very well decline even further, but currency speculation is a notoriously difficult game - remember how much money the UK government lost in 1992!

4:51 pm on Mar 7, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:July 21, 2003
posts:130
votes: 0


Re: HSBC comments. Given I cashed a US Dollar cheque recently, I spoke to them last month about their charges. It's a per cheque charge, not per transaction, so there is no benefit is saving cheques up and depositing them together (this policy changed a few years back they told me). It's 5 if the cheque translates to under 100, then it is 10 if it is between 100 and 5,000 and then you need to chat with them for anything higher. So long as you deposit before 3pm the money will be in your account by close of business the very same day (that's 5pm I think) and available for withdrawal - given the usual 'if it bounces then we will take the cash back' situation. I hope this is explained well enough.
7:57 pm on Mar 7, 2005 (gmt 0)

Junior Member

10+ Year Member

joined:May 19, 2004
posts:174
votes: 0


It's a per cheque charge, not per transaction, so there is no benefit is saving cheques up and depositing them together

You can always ask Adsense-team to NOT send your cheque. They will keep your money and put it together with next month's earnings on one cheque. You can do this for max 6 month's I think. You must ask this before the fifth of the next month.

8:13 pm on Mar 7, 2005 (gmt 0)

Preferred Member

10+ Year Member Top Contributors Of The Month

joined:Mar 12, 2004
posts:518
votes: 25


I also ask for my cheque to be delayed by 6 months. In fact just before the 6 months is up you can bump it along for the next 6 months. Of course if your account is cancelled then I'd guess you loose all 6 months.
8:37 pm on Mar 7, 2005 (gmt 0)

Full Member

10+ Year Member

joined:May 21, 2003
posts:255
votes: 0


I use the Citibank US$ current account. I post the monthly cheque and they credit it to the account. There is no fee, but the exchange rate is poorer, to take into account their profit. Periodically I transfer the money to my Citibank Sterling account and then to my regular account.

If you have large amounts, then you could lose out in the exchange rate. But if you have small amounts, the cost-per-cheque is lower as there is no flat fee.

12:42 pm on Mar 8, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Feb 24, 2005
posts:965
votes: 0


Don't forget that the U.S. government has gone from a budget surplus at the end of the Clinton years to a massive budget deficit, and any balance-of-trade gains from a falling dollar have been nullified by a growing reliance on foreign suppliers for everything from consumer goods to oil to business and industrial products.

Yes, but that budget deficit was caused by the US spending a lot of money on invading foreign countries. They are expecting a lot of exports to these foreign countries. I'm sure the ROI on the money spent will be very good indeed.

It is by no means an ethical investment, but it is a profitable one.

3:31 pm on Mar 8, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:June 6, 2003
posts:395
votes: 0


It's not going to happen, the USA does not have the manufacturing base it once had. One of the reasons they couldn't get armor kits up for the Humvee was that there is now only one domestic steel maker able to supply the raw materials. Right now we are looking for other markets
as the exchange rates dry up our profits state's side.
Since 2002 the exchange rate on the Canadian dollar has gone from 1.00 Canadian = .62 cents USD to as high as
$1.00 Canadian = .85 cents USD. We seldom hold the US$ now for more than two days.
3:56 pm on Mar 8, 2005 (gmt 0)

Senior Member

joined:Oct 27, 2001
posts:10210
votes: 0


Yes, but that budget deficit was caused by the US spending a lot of money on invading foreign countries....

That may have been part of it, but tax cuts were the real culprit--and those won't improve the balance of trade or encourage foreign investment.

Would it be a violation of the AdSense TOS to run a line that says "Strengthen the dollar--click on our non-U.S. advertisers' AdSense ads"? :-)

10:07 pm on Mar 8, 2005 (gmt 0)

Preferred Member

10+ Year Member

joined:June 15, 2003
posts:395
votes: 0


Alternatively you could advertise US holidays to foreigners on your site who would then go there, spend their currency and help the exchange rate to some degree. ;)
1:32 am on Mar 9, 2005 (gmt 0)

New User

10+ Year Member

joined:Mar 9, 2005
posts:4
votes: 0


I use the Citibank US$ current account. I post the monthly cheque and they credit it to the account. There is no fee...

I too use Citibank and can generally recommend them. Note, however, that there is a USD20 fee for the USD account if you don't maintain a balance of GBP2000 across all your accounts with Citibank.

Even with the USD20 fee, it seems as though this is a good offer.

(My first post, BTW, and on such a dull topic. Well, they can't all be zingers, I suppose. So, umm: hi!)

7:07 am on Mar 9, 2005 (gmt 0)

New User

10+ Year Member

joined:June 27, 2001
posts:38
votes: 0


Smile (online bank) is pretty good: "Foreign cheques up to the value of 100.00 pounds are charged at a standard fee of 4.00 pounds. Those over 100.00 pounds and up to the value of 2000.00 pounds will be charged at a standard fee of 8.00 pounds. As long as no individual cheque is more than 2000.00 pounds and they're all in the same currency, we can negotiate multiple cheques upto a maximum of 5000.00 pounds (in any 28 day period) The charge for doing this is 0.25 per cent of the sterling value, minimum of 8.00 pounds."

I think this means you can cash a cheque or a bunch of cheques up to five or six thousand dollars for eight pounds.

The bank's pretty good too.

This 40 message thread spans 2 pages: 40
 

Join The Conversation

Moderators and Top Contributors

Hot Threads This Week

Featured Threads

Free SEO Tools

Hire Expert Members