Valid dispute on CC?

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Musiclover08

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I ordered some stuff online on the 4th of March and paid in US Dollars, since the exchange rate was more favourable than the converter the site used. When I checked my statement I see that the transaction is listed on the 4th of March but the exchange rate used was 12.48. I asked the bank to check and they say that the charge is correct, but can't give me the exchange rate for that Monday, when I received an sms to say the amount was processed. I managed to check via XE.com and the rate was hovering around 12.01 to the dollar.

I don't believe the exchange rate used is correct but in order to dispute I need to agree that the bank can charge me R150 if they deem it necessary. Would you say I have a valid dispute?
 
There is a difference between the exchange rate as on xe.com, and the bank selling rate which is normally higher, have a look at your bank exchange rates. The bank selling rate, vs the bank buying rate or something like it
 
Musiclover08 said:
I ordered some stuff online on the 4th of March and paid in US Dollars, since the exchange rate was more favourable than the converter the site used. When I checked my statement I see that the transaction is listed on the 4th of March but the exchange rate used was 12.48. I asked the bank to check and they say that the charge is correct, but can't give me the exchange rate for that Monday, when I received an sms to say the amount was processed. I managed to check via XE.com and the rate was hovering around 12.01 to the dollar.

I don't believe the exchange rate used is correct but in order to dispute I need to agree that the bank can charge me R150 if they deem it necessary. Would you say I have a valid dispute?
Click to expand...

Bank charges the exchange rate + % , called the bank selling rate. Always been like this.

https://www.fnb.co.za/rates/ForeignExchangeRates.html

That is fnb current buying and selling rates. If you buy online, you pay the selling rate.
 
Exchange rates vary per bank, and are not necessarily the rate you see XE.
Also, settle date could vary from the sms date, which means the actual value in rands may differ between the time
the merchant authorised and settled the transaction. Best to use a product like VCpay for international transactions.
 
Technically there is never a single exchange rate. There is always a buy rate and a sell rate. Any time a single exchange rate is quoted, it is either the last traded rate, one of the buy or sell rates (quite uncommon) or (most commonly) the mid-point between the buy and sell rates and as such, that quoted rate is not actually tradable by anyone (including the banks).

When you buy dollars, in addition to the difference between the single mid rate and the actual buy or sell rate, the bank adds a bit to cover fluctuations between when they sell you the dollars and they buy them from elsewhere to supply to you. Then, they charge you a fee for providing you with this service.
 
Ewie said:
There is a difference between the exchange rate as on xe.com, and the bank selling rate which is normally higher, have a look at your bank exchange rates. The bank selling rate, vs the bank buying rate or something like it
Click to expand...

I get that, which is why I did factor in around 20c per dollar more. If I take their word for it, then I was out 48c per dollar.

Gtx Gaming said:
Bank charges the exchange rate + % , called the bank selling rate. Always been like this.

https://www.fnb.co.za/rates/ForeignExchangeRates.html

That is fnb current buying and selling rates. If you buy online, you pay the selling rate.
Click to expand...

So I had a look at what Nedbank had listed and it was 12.24 selling rate. I suspect they charged a fee and included it into the exchange rate.

ahmedK said:
Exchange rates vary per bank, and are not necessarily the rate you see XE.
Also, settle date could vary from the sms date, which means the actual value in rands may differ between the time
the merchant authorised and settled the transaction. Best to use a product like VCpay for international transactions.
Click to expand...

Yes, that was the response I got from the help desk themselves. Would VCPay stop something like this?

Jehosefat said:
Technically there is never a single exchange rate. There is always a buy rate and a sell rate. Any time a single exchange rate is quoted, it is either the last traded rate, one of the buy or sell rates (quite uncommon) or (most commonly) the mid-point between the buy and sell rates and as such, that quoted rate is not actually tradable by anyone (including the banks).

When you buy dollars, in addition to the difference between the single mid rate and the actual buy or sell rate, the bank adds a bit to cover fluctuations between when they sell you the dollars and they buy them from elsewhere to supply to you. Then, they charge you a fee for providing you with this service.
Click to expand...

I am beginning to think that is what they did, combined all the fees into the exchange rate that was charged and make it seem like they charged no fees on the transaction.
 
Found that prices fluctuate after buying (prices stated vs taken of card) - I always round up to cover the cost etc.

Word of warning - Customs is quite overloaded and seems to check packages a lot more thoroughly than a few months ago. Have packages waiting to go to the PO posted in December last year.
 
Musiclover08 said:
I ordered some stuff online on the 4th of March and paid in US Dollars, since the exchange rate was more favourable than the converter the site used. When I checked my statement I see that the transaction is listed on the 4th of March but the exchange rate used was 12.48. I asked the bank to check and they say that the charge is correct, but can't give me the exchange rate for that Monday, when I received an sms to say the amount was processed. I managed to check via XE.com and the rate was hovering around 12.01 to the dollar.

I don't believe the exchange rate used is correct but in order to dispute I need to agree that the bank can charge me R150 if they deem it necessary. Would you say I have a valid dispute?
Click to expand...

Surely then the amount was listed on that SMS? In which case that is the amount at the time of the transaction and it shouldn't have changed.

I would not waste my R150...

XE.com is not representative of the bank's actual exchange rate. You should have called or checked their website on the day if you wanted more accuracy.
 
SauRoNZA said:
Surely then the amount was listed on that SMS? In which case that is the amount at the time of the transaction and it shouldn't have changed.

I would not waste my R150...

XE.com is not representative of the bank's actual exchange rate. You should have called or checked their website on the day if you wanted more accuracy.
Click to expand...

The amount listed in the sms was in dollars, not rands. Hence why I wanted to dispute the rates, but seems like a waste of R150 to be honest. All the replies here could potentially be what the bank tells me in any case.
 
Musiclover08 said:
The amount listed in the sms was in dollars, not rands. Hence why I wanted to dispute the rates, but seems like a waste of R150 to be honest. All the replies here could potentially be what the bank tells me in any case.
Click to expand...
Which bank?

I always get it listed in rands by the time the SMS comes.
 
shinji said:
Found that prices fluctuate after buying (prices stated vs taken of card) - I always round up to cover the cost etc.

Word of warning - Customs is quite overloaded and seems to check packages a lot more thoroughly than a few months ago. Have packages waiting to go to the PO posted in December last year.
Click to expand...

Thanks for the advice, learning curve with buying overseas haha! Customs is rather full, perhaps should have asked for the expedited shipping. Oh well.
 
Nope, no dispute. You can never compare XE.com to what the bank charges. I use a factor of 50c extra.
 
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