Where do credit card companies get their exchange rates from? I mean at the moment it is $1.85 to the £. I buy something parts from there and the exchange rate on my credit card is $1.77 to the £.

 

It means that everything is about 4-5% higher.

 

Why do CC companies have their own exchange rate?

I've wondered the same thing, and don't forget most of them charge a percentage for an international transaction.

 

Vijay

It's a good idea if you can to use your card through paypal, they give you the full exchange rate, i've just brought an APEXi AVC-R from ultimate Z for £270 all in (marked as gift ;) ). My cards getting battered to sh*t at the moment, too many bargains.

 

Baz

I got one of those coming too Baz :D

 

Its not too bad when you are paying for £200-£300 stuff, but I have ordered over £2000 worth and its a difference of over £100 between the real exchange rate and what the CC charge you

Hi Baz,

 

"marked as a gift" doesn't work anymore. My brother sent me a late Xmas present over and I got hit for the duty/tax. I rang customs and asked why the hell I have to pay tax on a present from my brother and was told even presents over the value of £36 are taxed - nice people eh??

 

I hope you do get away with it ;)

 

Vijay

I got some stuff last week

from USA valued £75 no mention of gift didnt pay VAT

from AUSTRALIA value £70 labelled gift didnt pay VAT

??

In theory is the rate on the day the transaction was made, but I've never actually checked up on what they do.

paypal do actually take a little chunk, their exchange rate is off by .05c at the moment ;) not as bad as .09 though as above!

Hi Paul,

 

I hope you get away with it, but I've had a duty bill come through the post 3 months after the stuff arrived :(

 

Vijay

Credit cards use either "Mastercard intenational" or "Visa international" exchange rates. These are set on a daily basis. You will also find in your terms of agreement with your credit card company that they add a premium of between 1 and 3 percent in addition to this rate. :( :mad:

 

They win one way or another,

 

 

 

Simon. :)