Finance - Foreign exchange margin
Microsoft Advertising charges an FX Margin (Foreign Exchange Margin) for clearing media cost in non-USD currencies. This charge is applied to offset the risk that Microsoft Advertising assumes due to the natural fluctuations of currency exchange rates during the course of a month of buying/selling activity. If you have any questions about this charge, contact your Account Manager.
Rates
The table below lists the FX Margin Rates per currency. These rates are subject to change and are set by Microsoft Advertising based on currency volatility, transaction volume, and cost to clear.
| Currency | FX Margin effective Jun/1/2017 | FX Margin effective Aug/1/2017 | FX Margin effective Oct/9/2017 | FX Margin effective Nov/1/2017 | FX Margin effective Jan/10/2018 | FX Margin effective Jan/29/2018 | FX Margin effective June 1, 2018 | FX Margin effective Feb 1st, 2021 | FX Margin effective Mar 13, 2021 |
|---|---|---|---|---|---|---|---|---|---|
| Argentine Peso (ARS) | -- | -- | -- | -- | -- | -- | -- | 15.00% | 0.00% |
| Australian Dollar (AUD) | 1.58% | 1.58% | 1.58% | 1.20% | 1.20% | 1.77% | 1.27% | 3.60% | 1.80% |
| Brazilian Real (BRL) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 8.00% | 3.90% |
| British Pound (GBP) | 0.36% | 0.36% | 0.39% | 0.50% | 0.62% | 1.71% | 0.99% | 3.90% | 2.00% |
| Canadian Dollar (CAD) | 1.12% | 1.12% | 1.12% | 1.12% | 1.21% | 1.98% | 1.46% | 3.10% | 1.70% |
| Czech Koruna (CZK) | 0.50% | 0.50% | 0.50% | 0.50% | 0.74% | 0.74% | 0.74% | 4.00% | 0.93% |
| Danish Krone (DKK) | 0.98% | 0.98% | 0.87% | 0.56% | 0.80% | 1.44% | 0.69% | 3.10% | 1.10% |
| Euro (EUR) | 0.33% | 0.38% | 0.50% | 0.50% | 0.50% | 0.95% | 0.67% | 3.10% | 1.10% |
| Hong Kong Dollar (HKD) | 0.30% | 0.30% | 0.30% | 0.60% | 0.42% | 0.42% | 0.34% | 0.30% | 0.30% |
| Hungarian Forint (HUF) | 1.37% | 1.37% | 1.37% | 1.37% | 1.37% | 1.37% | 1.37% | 5.20% | 1.71% |
| Indian Rupee (INR) | 3.30% | 3.30% | 3.30% | 3.30% | 3.30% | 3.30% | 3.30% | 4.20% | 2.70% |
| Indonesian Rupiah (IDR) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.10% | 2.90% |
| Israeli Shekel (ILS) | -- | -- | -- | -- | -- | -- | -- | 0.00% | 0.00% |
| Japanese Yen (JPY) | 1.00% | 1.00% | 1.00% | 0.95% | 1.00% | 1.00% | 1.00% | 2.60% | 1.00% |
| Malaysian Ringgit (MYR) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% |
| Mexican Peso (MXN) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 7.30% | 3.60% |
| New Taiwan Dollar (TWD) | 2.78% | 3.50% | 2.59% | 1.95% | 1.42% | 1.42% | 2.86% | 2.20% | 0.70% |
| New Zealand Dollar (NZD) | 1.81% | 1.81% | 1.81% | 1.81% | 1.81% | 1.81% | 1.35% | 4.30% | 2.20% |
| Norwegian Krone (NOK) | 1.89% | 1.89% | 1.89% | 1.89% | 1.89% | 1.89% | 1.63% | 4.70% | 2.10% |
| Philippine Peso (PHP) | 2.51% | 2.30% | 2.86% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% | 3.35% |
| Polish Złoty (PLN) | 1.47% | 1.47% | 1.47% | 1.47% | 1.47% | 1.47% | 1.16% | 4.30% | 1.70% |
| Russian Ruble (RUB) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 7.90% | 4.10% |
| Singapore Dollar (SGD) | 0.98% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 1.07% | 2.30% | 0.90% |
| Swedish Krona (SEK) | 1.77% | 1.77% | 1.90% | 1.90% | 1.90% | 1.90% | 1.90% | 4.40% | 2.38% |
| Swiss Franc (CHF) | 0.09% | 0.20% | 0.20% | 0.20% | 0.20% | 0.33% | 0.33% | 3.50% | 0.41% |
| Thai Baht (THB) | 1.60% | 1.60% | 1.60% | 1.60% | 1.60% | 1.60% | 1.05% | 4.50% | 2.00% |
| Turkish Lira (TRY) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 9.40% | 3.60% |
| Vietnamese Dong (VND) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 2.10% | 2.30% |
How is FX margin applied?
- FX margin is only charged on non-USD media costs that Microsoft Advertising clears.
- For Buyers, this is any non-USD "Cost of Media" on the invoice.
- For Sellers, this is any non-USD "Seller Revenue" on a payment.
- FX Margin is a percentage calculated by multiplying the FX Margin Rate % * Media Cost.
- We will waive FX Margin when the buyer and seller billing currencies are equivalent (effective 2/1/2021).
- Margin can be charged as either a fee or deduction (both are described below in greater detail).
Fee vs deduction
Microsoft Advertising can charge FX Margin as either a fee or deduction (depending on what the client prefers). Generally, we apply whatever method is being used for the client's BASC/SASC charges (but that can be overridden as needed). Each charging method is described below:
| FX Margin as a Deduction | FX Margin as a Fee |
|---|---|
| - A revenue sharing percentage, calculated by multiplying the FX Margin Rate % * Media Cost - Included in cost budget - Bid reduced - Rolled into media cost during billing, will appear as "Cost of Media" on the buyer's invoice. - Can be charged to both buyers and sellers depending on where the FX risk lies. |
- A revenue sharing percentage, calculated by multiplying the FX Margin Rate % * Media Cost - Not included in cost budget- - Not bid reduced - Not included in media cost during billing, therefore appears as a separate line item on an invoice as "FX Margin Fee". - Can be charged to both buyers and sellers depending on where the FX risk lies. |
Reconciliation
To reconcile the FX Margin charge that may be applied to you with your invoices, refer to the applicable section below.
Buyers
Buyers can view either FX Margin Fees or Deductions in the Buying Billing Report in the UI. To view these values within that report, select the applicable metric (e.g., FX Margin Fee or FX Margin Deduction) prior to running the report.
Sellers
To protect contract terms privacy, Microsoft Advertising does not expose sell-side revenue sharing in reporting.