How To Create a Dollar Account For Amazon KDP [UPDATED]

Introduction.

Creating a dollar account for Amazon KDP is a game-changer for self-published authors who want to maximize their earnings and make the most of the global audience on Amazon.

With Amazon KDP (Kindle Direct Publishing), you can publish your books worldwide, but getting paid in dollars directly is often tricky, especially if you’re outside the US.

For many authors, this means dealing with currency conversion fees, delays, or even reduced income.

So why does having a dollar account matter? A dollar account allows you to receive your earnings in USD without worrying about costly conversion rates, so you keep more of your royalties.

If you’re a writer or publisher who’s serious about reaching readers globally and making every dollar count, this setup could save you a lot of money and hassle.

In this guide, I’ll walk you through the steps of creating a dollar account for Amazon KDP, no matter where you’re located.

I’ll also go over some pros and cons, so you can make the right choice based on your situation. And to keep it simple, I’ll include a FAQ section at the end to clear up any doubts.

Let’s dive in!

Why Create a Dollar Account for Amazon KDP?

Amazon KDP pays royalties primarily in dollars if you’re targeting the US market. If you live outside the United States, Amazon generally converts your royalties into your local currency, often at an unfavorable rate, which can result in losing a chunk of your earnings. By having a dollar account, you can:

Avoid Currency Conversion Fees: Every conversion means paying a small fee, which adds up over time. A dollar account lets you sidestep these fees.
Control Your Money: Having a dollar account means you can decide when (and if) to convert your money, allowing you to take advantage of favorable exchange rates.
Speed Up Transactions: Direct deposits into a dollar account are often faster, meaning you get your money sooner than if it were being transferred internationally.

How Do I Set Up a Dollar Account for Amazon KDP?

Creating a dollar account may vary depending on where you’re based. Here are some popular options:

1. Wise (formerly TransferWise)

How It Works: Wise offers a multi-currency account that allows you to hold and receive funds in USD, along with other currencies. You can use it to create a “borderless” account with US banking details.
Pros: Low fees, user-friendly app, and easy integration with Amazon.
Cons: While Wise has great rates, some countries may face limitations on Wise accounts, so make sure it’s available in yours.

2. Payoneer

How It Works: Payoneer provides a US bank account number even if you’re not in the US, which can be used to receive Amazon KDP payments directly in USD.
Pros: Trusted platform with a long-standing reputation; it’s available in most countries.
Cons: Higher fees compared to Wise in some cases, and some features may not be available in all regions.

3. Local Bank Accounts with USD Options

How It Works: Some local banks offer USD-denominated accounts. You may need to check with your bank to see if this is an option for you.
Pros: Since this is a local bank, you may benefit from customer service and in-person support.
Cons: Not all banks offer this option, and fees might be higher than other digital alternatives.

4. Revolut

How It Works: Revolut is another digital banking option that allows you to open multiple currency accounts, including USD.
Pros: Good for people who want to manage multiple currencies in one place. They also offer competitive exchange rates.
Cons: Revolut has some regional restrictions, so make sure it’s available in your country.

Pros and Cons of Having a Dollar Account

Here’s a quick look at the advantages and potential drawbacks of using a dollar account for Amazon KDP payments.

Pros

Saves Money on Currency Conversion: You avoid losing money to unfavorable exchange rates.
Direct Control Over Your USD Funds: You decide when to convert your earnings and can hold them until the rates are best for you.
Quicker Payment Processing: Often, you’ll get paid faster when you have a dollar account than if you rely on international transfers.

Cons

Account Fees: Some dollar accounts come with setup fees or monthly fees.
Availability Issues: Not every service is available in every country, so it may take a bit of research to find an option that works.
Complexity: Setting up a dollar account can be a bit of a process, especially if you’re using a third-party provider.

FAQ: Dollar Accounts for Amazon KDP

Q: Can I create a dollar account if I’m not based in the US?

A: Absolutely! Many platforms, like Payoneer and Wise, specialize in offering dollar accounts to non-US residents.

Q: What’s the cheapest option to receive USD payments for Amazon KDP?

A: Wise is generally known for its low fees, but it’s worth comparing options like Payoneer and Revolut based on the fees in your specific country.

Q: Is it legal to open a dollar account if I’m outside the US?

A: Yes, most countries allow residents to open foreign currency accounts. However, always check with local regulations to ensure you comply with any specific rules.

Q: What happens if I don’t set up a dollar account?

A: If you don’t have a dollar account, Amazon will convert your earnings to your local currency and send it to your regular bank. However, you may lose some money to conversion fees and lower exchange rates.

Q: Will Amazon KDP support help me with this setup?

A: Amazon KDP support typically doesn’t assist with setting up bank accounts. You’ll need to rely on the customer support of the platform you choose (e.g., Payoneer or Wise) if you have questions about account setup.

Q: Is there a minimum amount required to set up a dollar account?

A: This depends on the provider. Most services like Wise and Payoneer don’t have high minimum balance requirements, making them accessible for freelancers and small business owners alike.

Conclusion

Setting up a dollar account for Amazon KDP might take a bit of initial work, but it can have a significant impact on your publishing income, especially if you’re publishing regularly or have a large reader base in the US.

By skipping currency conversion fees and holding onto your earnings until the rates are most favorable, you’re in a better position to maximize your royalties.

So, are you ready to take this step and start maximizing your Amazon KDP earnings? Or do you have any lingering questions about setting up a dollar account?