What Is Payment Threshold

What Is Payment Threshold

Payment Threshold is the amount of money, affiliate commissions or royalties that you must have in your account before a payment is issued to the payee of the account. Once the amount of money within the account crosses the payment threshold, a payment will be generated in a form of a check, bank wire, ACHE, PayPal and other available payment methods the vendor provides.

At the specified time interval, accumulated commissions for each affiliate are compared to the minimum payment level. If an affiliate fails to meet the minimum payment level, the amount is rolled over to the next period. This continues until the accumulated commission is greater than the minimum payment level. When this happens, payment is sent a certain amount of days after the end of the period, as specified in the contract.

In affiliate marketing programs, the payment threshold refers to the minimum accumulated commission an affiliate must earn to initiate a payment from the affiliate program.