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Foreign exchange rates discussion [FOREX]--all cards

Foreign exchange rates discussion [FOREX]--all cards

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Old Jun 24, 16, 1:08 pm
  #346  
 
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Originally Posted by josephstern View Post
But, until the purchase has finalized, Chase could still adjust the number. And, with foreign transactions, they often do.
Legally shouldn't they charge the rate as of the day of transaction? I mean if thats not true then it opens up a can of worms.

Originally Posted by garykung View Post
If I am correct, you made the purchase on 06/23/2016.
No. I made the purchase today 06/24/2016.

Last edited by mia; Jun 24, 16 at 1:18 pm Reason: Combine consecutive replies and prune quotations.
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Old Jun 24, 16, 1:16 pm
  #347  
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Originally Posted by MNSWEEps View Post
Legally shouldn't they charge the rate as of the day of transaction?
No. The card terms explain how how it works:

If a transaction is in a foreign currency, Visa International or MasterCard International will convert the transaction into U.S. dollars using their own currency conversion procedures, and then will send us the transaction amount. The exchange rate will be determined using either the range of rates available in the wholesale currency markets for the processing date (which may be different from the rate the card association receives) or a government-mandated rate in effect on that date. The exchange rate used by Visa or MasterCard may differ from the rate on the date of your transaction
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Old Jun 24, 16, 2:49 pm
  #348  
 
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I paid for an upcoming ticket with my Hyatt card Chase as well, and the amount pending changed when the transaction finally closed. It was more than I expected, not by more than a few bucks but still, it was the exchange rate I can only assume of the day it finally posted not the one I made the purchase on.
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Old Jun 24, 16, 3:32 pm
  #349  
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Chase uses the exchange rate on the day the transaction is POSTED, not the day the transaction is made.

Also the Visa daily rate has a roughly 1% mark up over the real mean rate as employed by MC.

The pending means nothing. Until you see the posted amount, then check that with the Visa daily rate - if it differs a lot, then you contact Chase. Until then, no reason to work yourself up.
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Old Jun 24, 16, 10:31 pm
  #350  
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Originally Posted by canon5dfan View Post
Btw I thought AMEX was equally as bad as Visa abroad?
I'm still finding Amex more random, but definitely better in the long run.
My average for the past 2 years for Amex is +.37% (vs XE) while Visa is +.65%.
Visa has narrowed the gap in 2016. My Amex average this year is +.36% with Visa +.58%.
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Old Jun 25, 16, 10:15 am
  #351  
 
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GBP interbank @ 1.365, Barclays/Visa uses 1.49, Chase/Mastercard 1.46

Post the fall in the value of GBP after the Brexit vote on Thursday, decided to charge two GBP 2,200 charges each to Barclays Arrival/Mastercard and Chase UA/Visa.

The transactions were put through by phone with merchant on Saturday, 25 June

The interbank FX rate on Friday 24 June had closed around 1.365

Barclays Arrival/Mastercard rejected the charge for some other reasons, but in "pending authorisations" I see they have used a rate of 1.49!!. The CS claimed this is "because we charge 25% on cash advances"!!! The supervisor said the current rate is 1.3608 and that is the rate which will ultimately be charged if and when the transaction goes through.

Chase UA/Visa charge for the same amount GBP 2,200 went through at a rate of GBP1 = $1.46, better than Barclays/Mastercard, but still way higher than interbank.

Tried to call Chase CC, but "our systems are down, we cannot take your call so please call back". Secured message has elicited a " relevant department will get back to you in two days" response

Do these credit card companies debit at a higher rate than adjust to a rate closer to market rate? As the charges were incurred on a Saturday, will they want to wait till Monday and use Monday's rate?

First time have looked at this whole issue, and very confused.

Last edited by SingaporeDon; Jun 25, 16 at 12:59 pm
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Old Jun 25, 16, 11:18 am
  #352  
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Originally Posted by SingaporeDon View Post
Do these credit card companies debit at a higher rate than adjust to a rate closer to market rate? As the charges were incurred on a Saturday, will they want to wait till Monday and use Monday's rate?
Chase certainly lists a rate at the time of the charge that is irrelevant. It will change to the rate at the date when the transaction posts, whether that is higher or lower.

Also, some banks stopped foreign GBP transactions temporarily during the turmoil after brexit. I imagine the fraud detection systems were going berserk with a huge spike in transactions.
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Old Jun 25, 16, 12:56 pm
  #353  
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Merged thread started by MNSWEEps into this thread because the incident is similar to that reported by SingaporeDon.

The exchange rate displayed on pending transactions is of little consequence. When the transaction posts it will reflect "an" exchange rate from the date the transaction was processed by the network, not necessarily the date the purchase was made.
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Old Jun 27, 16, 7:35 am
  #354  
 
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Hotel in Scotland asked if I wanted to pay now as opposed to during checkout to take advantage of the much better rate. They charged my Amex at 7:24pm EST on the 24th, rates were in the 134 range. Of course i checked my bill today and it seems Amex charged me at around 1:00am earlier in the morning and i got nailed with 150 rate. Difference in about 90 bucks.

Last edited by tr561; Jun 27, 16 at 7:42 am
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Old Jun 27, 16, 11:22 am
  #355  
 
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Originally Posted by tr561 View Post
Hotel in Scotland asked if I wanted to pay now as opposed to during checkout to take advantage of the much better rate. They charged my Amex at 7:24pm EST on the 24th, rates were in the 134 range. Of course i checked my bill today and it seems Amex charged me at around 1:00am earlier in the morning and i got nailed with 150 rate. Difference in about 90 bucks.
I bought Eurostar and Easyjet tickets in GBP with my AMEX SPG. Transaction date was Jun 26, and they both posted today. I got the 150 rate, too! This is ridiculous.
I opened a dispute for the charges and will see what they say. If AMEX does not adjust the rate/charge, I am going to report it to CFPB.
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Old Jun 27, 16, 11:47 am
  #356  
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Originally Posted by buschoi View Post
... Transaction date was Jun 26, and they both posted today.
I think it's is worth inquiring, but using the "dispute" process may create confusion. For reference here are the terms that we agree to when we open the card:

Converting charges made in a foreign currency

If you make a charge in a foreign currency, we will convert it into U.S. dollars on the date we or our agents process it. Unless a particular rate is required by law, we will choose a conversion rate that is acceptable to us for that date. The rate we use is no more than the highest official rate published by a government agency or the highest interbank rate we identify from customary banking sources on the conversion date or the prior business
day.
This rate may differ from rates that are in effect on the date of your charge. We will bill charges converted by establishments (such as airlines) at the rates they use.
Transactions processed over the weekend would use rates established on Friday, and some interbank rates on Friday could still have reflected the pre-referrendum rates.
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Old Jun 27, 16, 11:55 am
  #357  
 
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Just got off phone with Amex, they said everyone in the world is calling about this today. He said he could change it 1.39 (avg of all day Friday), but even that is more than when i was actually charged by hotel (which was Saturday the 25th). He said he could either do a dispute and get the money adjusted that way, but it was possible hotel would cancel reservation at that point, or i could call hotel and cancel/refund, and then immediately ask to them re-book. I chose the latter and the nice gentleman at the hotel did the transaction. I then used my City Platinum just for the hell of it...

Last edited by tr561; Jun 27, 16 at 12:52 pm
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Old Jun 27, 16, 3:41 pm
  #358  
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This GBP exchange on Friday may be the only time DCC would work in consumer's favor ...
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Old Jun 28, 16, 6:25 am
  #359  
 
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Originally Posted by buschoi View Post
I bought Eurostar and Easyjet tickets in GBP with my AMEX SPG. Transaction date was Jun 26, and they both posted today. I got the 150 rate, too! This is ridiculous.
I opened a dispute for the charges and will see what they say. If AMEX does not adjust the rate/charge, I am going to report it to CFPB.
I too opened disputes for all my transactions since this past weekend. Amex rates are based on when the transaction posted, not the purchase date. And the rate they use is the one on oanda.com for the date of posting.

The CSR went thru mine and said all disputes got auto-resolved and the adjustments got posted to the system. She said it will take 48 hours to see them in the Amex app / website.

Some disputes I believe take 30+ days but some are automatically resolved after they submit. Ask CSR to open a currency rate discrepancy dispute in case they aren't aware what to do.
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Old Jun 28, 16, 7:15 am
  #360  
 
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No way was the rate 150 on June 25th when my transaction was done with hotel in Scotland. I made the purchase at 8pm EST on the 24th and transaction was completed on 25th. It's almost like AMEX set all of their rates at 12:01 on the 24th, several hours before referendum was even done. Just think how low the percentage of people are that actually call Amex and discuss/dispute any of this...
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