Thinkific is an online course platform that enables users to create, market, and sell courses online. It offers a range of features, including course templates, multimedia support, quizzes, surveys, video hosting capabilities, and more.
When it comes to selling products or services abroad with Thinkific, it’s important to be aware of the potential foreign transaction fees that may apply. Foreign transaction fees are charged by banks when payment is processed in a currency different from the merchant’s base currency. These fees can add up quickly if not properly accounted for in the pricing structure for international customers. Therefore, understanding how these fees work and how they can affect your bottom line is essential when considering using Thinkific for global sales.
What are Foreign Transaction Fees?
Foreign transaction fees refer to the additional cost charged when making a purchase or withdrawing money from an account in another currency. These fees are typically charged by banks and credit card companies, but they may also be included in the exchange rate of foreign transactions.
How Foreign Transaction Fees are Calculated:
The exact amount of foreign transaction fees vary depending on the bank or credit card company and the particular transaction, but these fees generally range between 1-3%. Some banks may charge a flat fee for each foreign transaction, while others may charge a percentage of the total amount. Additionally, some banks will waive foreign transaction fees for certain types of transactions.
Examples of Common Foreign Transaction Fees:
When using Thinkific to take payments from customers who use other currencies, you will likely incur foreign transaction fees that your payment processor charges per sale. The exact cost varies based on the payment provider, but it is typically around 1-3% of each sale in addition to any processing and conversion fees required by the payment processor itself
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Thinkific and Foreign Transaction Fees
Explanation of Thinkific’s foreign transaction fee policy:
Thinkific charges a 3% foreign transaction fee when selling courses to customers outside the U.S., Canada, or Australia. This fee is added on top of any payment processing fees charged by the processor used for the transaction. Thinkific also offers currency conversion services for international transactions, which may incur additional costs depending on the amount being converted.
How Thinkific’s foreign transaction fees compare to other online course platforms:
Thinkific’s foreign transaction fees are comparable to most other online course platforms, such as Teachable and Kajabi, which both also charge a 3% fee for international transactions. However, some platforms do not charge any additional fees for international transactions, such as Podia and LearnDash.
Factors to consider when choosing a platform based on foreign transaction fees:
When selecting an online course platform based on its foreign transaction fees, it is important to consider your target audience and their location(s). If you expect to have a large number of international customers, then it would be beneficial to choose a platform that does not charge an additional fee for these transactions (such as Podia or LearnDash). On the other hand, if you expect mostly domestic customers then it may make more sense to select a more feature-rich platform like Thinkific or Teachable even with their higher international fees.
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How to Avoid or Minimize Foreign Transaction Fees on Thinkific
Strategies for avoiding foreign transaction fees when using Thinkific:
One of the best ways to avoid foreign transaction fees is to use a payment processor that does not charge them, such as Stripe. It’s important to note, however, that not all countries are supported by Stripe and some may still incur a fee. Additionally, you can also use PayPal which does not charge a fee in most cases but there is an additional cost associated with their services.
Tips for minimizing the impact of foreign transaction fees on your revenue:
If you have to use a payment processor that charges foreign transaction fees, there are several strategies you can employ to help minimize the impact they have on your revenue. These include setting up pricing tiers based on country and currency, setting up international affiliates who will be responsible for collecting payments from customers in their region, and offering discounts or special offers to customers located in areas where the fees are higher than average.
Considerations for international course creators using Thinkific:
Finally, it’s important for international course creators using Thinkific to keep in mind that foreign transaction fees can vary significantly between different countries and even within regions so it’s important to research what rates apply in each case before launching an online course. Additionally, it’s always wise to do a test run with each payment processor you plan on using before rolling out your course globally as this will allow you to get an accurate picture of how much money you stand to lose due to these types of fees.
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Conclusion
When using Thinkific for global sales, it’s crucial to be aware of foreign transaction fees that may apply. These fees are charged by banks and credit card companies when processing payments in different currencies. Understanding how these fees are calculated and their impact on your bottom line is vital for international course creators. Thinkific charges a 3% foreign transaction fee for customers outside specific regions. Comparatively, other platforms have similar fees, while some platforms waive these fees altogether. To minimize the impact of foreign transaction fees, consider using payment processors like Stripe or PayPal, set up pricing tiers based on country and currency, and explore options like international affiliates and special offers. International course creators should research country-specific fees and conduct test runs with payment processors. By staying informed and implementing effective strategies, you can navigate foreign transaction fees and optimize your revenue on Thinkific.