CRC and exchange Rate differences

[Spat]

Hi

 

Wanted to check if any of you have experienced the following:

 

Order from CRC, the Amount shows in SA Rands, you purchase and get sms or confirmation from the bank and the amount is different (by a couple hundred rand)

 

I have contacted the bank and CRC and basically the bank says its on CRC side, and CRC say's:

 

Thanks for the email,

I can see the differences in the two values. I have spoken to my team leader and he has confirmed that the differences in exchanges rates are a down side to ordering in another country along with any number of other factors.

 

Seems wierd to me never experienced this before.

Edited February 23, 2012 by Spat

[Organic]

The price to watch is the price in Pounds - that's what CRC charges to your card. Your bank will determine how that gets converted into Rands. The value that CRC uses is just an estimate using a recent exchange rate.

 

Different banks sometimes charge different rates.

[Minion]

The bank charges a 2.75% or so commission when it does a credit card currency change. I don't think the CRC exchange rate takes this into account. In the past, I've also got the impression that CRC doesn't update their rate very often.

 

The bank will also use the rate that applies at the time they process the CC transaction. This will be different to the rate that CRC uses. Have a look at the difference between the daily high and low rate to get an idea of how much of an effect this could have.

Edited February 23, 2012 by Edman

[Capricorn]

check exchange rates, then go try and buy or sell said currency. It can be disappointing.

[Spat]

Thanks, something watch and take into account before buying next time.

[gogo@]

Really depends on what day the conversion happens and for some reason it's not pegged to when your payment is made. I think this has as much to do with the Reserve Bank as your local bank. If the Rand strengthens it could work in your favor. There's no way CRC can work all that out!

[GrumpyOldGuy]

Really depends on what day the conversion happens and for some reason it's not pegged to when your payment is made. I think this has as much to do with the Reserve Bank as your local bank. If the Rand strengthens it could work in your favor. There's no way CRC can work all that out!

 

Indeed, the bank clears the card at the rate it has for that time and that day, however this is just an estimate, when the bank pays, which could be 12 hours or more later, it will pay at the rate applicable then, and debit your card with this fixed amount, not the estimation. Sometimes this works in your favor, sometimes it works against you.

 

Then, as others have said, there will be foreign transaction charges added to the value remitted, different banks will charge different transaction fees and the charges will also depend on your profile with the bank.

 

A lot of people make the mistake of looking at the stock market and working out prices based on those exchanges, but remember the bank BUYS money (dollars / pounds etc) at a certain rate and then sells it again to you WITH a profit included, so banks exchange rates are always higher than the stock markets.