Amazon FX commission and exchange rate

Allyall

More curious than complaining.

I bought something from Amazon on the 24th of May, and paid for fast shipping.

It was £211.15 which amazon exchange rate (FX rate 1.411) valued at €298.02 and FX commission was €8.20, along with a £1 payment to amazon for something.

I returned the item on the 27th as it was blatantly fake, and on the 27th amazon told me that a refund had been granted, and issued on the 28th.

The refund is £211.15 which amazon exchange rate valued at €285.20, which would put the FX rate at somewhere around 1.351 and again a charge of £1 from Amazon.

The exchange rate hasn't been below 1.38 (1.38892 to be exact) in the past week (according to XE anyway)
But it's not displayed what FX rate that they used on the refund.
Using the lowest rate, that puts the refund ~€8.20 lower than the lowest last week.

Have they charged me FX commission on the refund and are just not showing the charge?
If not, why are their exchange rates so poor?
Also, what are the £1 charges for? Paying in sterling? Is that not what the FX commission is for?

delahuntv

Xe is a mid market rate which you will never get unless you are dealing in millions.

Consumer rate is usually about 2% off mid market and it works both ways.

So buying stg and 2% currency exchange fee and then effectively selling sterling when the item is returned gives a separate currency transaction and another 2% (approx) fee.

Yggr of Asgard

You are talking about the amazon exchange rate, so did you choose to pay in € on the UK site using the Amazon Currency Converter?

If you did, than your refund is not correct as when you return something you will get the same € back:

If you decide to return an item that you paid for using Amazon Currency Converter for refund or exchange, the same Applicable Exchange Rate will apply to the refund or exchange.

If you however paid in £ than it's a different story because your bank is involved in the currency conversion and that's than tuff luck. Amazon refunded you the same £ you paid and wants you to take the currency fluctuation.

rubadub

The fact the item is fake might change things, I am not sure. This does not have to be treated like an unwanted order, its allegedly a fake. The poster could have gone to the bank and reported it as fraud and might have got a full refund as the bank would be able to do a chargeback.

I am not sure at all though, someone else might confirm.

Allyall

It's also curious why Amazon or whoever, don't display the FX exchange rate on the refund, as they refund in sterling.
I would've thought it would be normal to display that.

EDIT - I think it may also be something to do with Visas/card companysbuy and sell rates. They apparently differ.

Allyall

The exchange rate is lower than it was all last week (1.37842) - and Amazon are charging more than it's ever been this year (1.43), and no doubt if I pay in sterling, it'll also be extortionate.
While a little funny :rolleyes:, there should be something in place ensuring current exchange rates at all times. I'm pretty confident it wouldn't be that hard to implement.

delahuntv

Allyall wrote: »

The exchange rate is lower than it was all last week (1.37842) - and Amazon are charging more than it's ever been this year (1.43), and no doubt if I pay in sterling, it'll also be extortionate.
While a little funny :rolleyes:, there should be something in place ensuring current exchange rates at all times. I'm pretty confident it wouldn't be that hard to implement.

There was a big movement in the rate yesterday - at 8am yesterday the official rate was 1.393, so a consumer rate of 1.43 to buy sterling would be about right (most banks woudlnahve charged that) and 1.36 to sell sterling, by 8am today, the difference was 1.3% - a large one day movement in currency terms.

Today, consumer exchange rate in Ulster Bank is 1.416 to buy sterling and 1.354 to sell sterling. My guess is the amazon rate would be similar

Tomorrow it will be different.

Yggr of Asgard

Allyall wrote: »

The exchange rate is lower than it was all last week (1.37842) - and Amazon are charging more than it's ever been this year (1.43), and no doubt if I pay in sterling, it'll also be extortionate.
While a little funny :rolleyes:, there should be something in place ensuring current exchange rates at all times. I'm pretty confident it wouldn't be that hard to implement.

But again, if you use Amazon currency converter than you will always pay more than what your bank charges, that is how they (amazon) make money.

You should use the official credit card tools to find out the exchange rate that will apply if you pay in £ (or any other currency) with your credit/debit card:

Visa
http://www.visaeurope.com/making-payments/exchange-rates

MasterCard
https://www.mastercard.com/global/currencyconversion/index.html

Your credit card company can tell you what their fee is.

And as to your original query, as I said before, if you used Amazon Currency Converter than you refund will match what you originally paid. You just need to complain if that was not the case.

rubadub

Yggr of Asgard wrote: »

But again, if you use Amazon currency converter than you will always pay more than what your bank charges, that is how they (amazon) make money.

Amazons rate has gotten a lot better in recent times, still best to stick with CC. I recorded a few deliveries recently and tehre was very little difference between my BOI mastercard payment and the euro rate they offered. The difference used to be a hell of a lot more.

delahuntv

and another leap today - official rate now 1.3612 - that's a massive change in 7 days! Last Thursday it was 1.41!

Basically sterling priced goods just got almost 4% cheaper in one week

pleasant Co.

May last few orders have been nearly 1:1 between amazons rate and my banks rate, they were off by pennies (sub 10cent)