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Question about Hong Kong issued credit cards

Question about Hong Kong issued credit cards

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Old Jan 16, 19, 11:28 am
  #16  
 
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Originally Posted by nacho View Post
At least the difference is small - 7.99 and 7.67 is simply insane! JPY was even worse, it's 7 and 6.5 per 100 JPY.

I do understand that currency fluctuates over time, however using a totally different rate is just wrong especially I'm not actually buying the currency.
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Standard term is 1 % charge by the Visa / MasterCard network. So buy/sell (purchase / refund) rate difference is 2% right there.

The bank may add on anohter 2 %, both ways. So Buy/Sell (purchase / refund) would be 6 % difference. i.e. you make a purchase and immediately get a refund, both posted on the same date, you lose 6 %. Standard practice in North America, for instance, and spelled out in the cardholder agreement, unless your bank doesn't charge for currency exchange PLUS refund the 1% network fee to you.

If I call the banks and complain, they always gave me the refund difference, "on goodwill basis".

Originally Posted by nacho View Post
I think refunding any purchases with a different exchange rate is simply wrong.
You buy foreign currency and then immediately "refund" it at a bank or currency dealer, you pay fee both ways. It sounds unfair but they run a business.
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Old Jan 16, 19, 12:53 pm
  #17  
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Except I think that some banks include the network charge when they quote their surcharge, so that half of a 2 percent charge would be going to to the network.
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Old Jan 17, 19, 6:28 am
  #18  
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I did file a complaint and got a refund for those "refunds" by threatening them that I'll go to HKMA if they don't comply - honestly I'll because this is simply wrong - banks can set whatever terms they like BUT it has to be fair and reasonable according to consumer law (at least in the EU). I think this would be a win in consumer case here in Europe. Citibank can charge me 7.67 if I credit a refund to my citibank card that I didn't use it to make the purchase.
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Old Jan 18, 19, 2:49 am
  #19  
 
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Thanks for the bit about threatening to go to HKMA if they con't comply. I would like to know what sort of non-compliance you were referring to when mentioning this to the bank.
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Old Jan 18, 19, 6:53 am
  #20  
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Originally Posted by Chromie25 View Post
Thanks for the bit about threatening to go to HKMA if they con't comply. I would like to know what sort of non-compliance you were referring to when mentioning this to the bank.
I told Citibank that I'll tell HKMA that they are charging a different exchange rate for refunds of purchases while there shouldn't be 2 rates like this - they have already earned 2+% forex when I made the purchase and it shouldn't be adding another 4% when I receive a refund.

Last time they did it I forwarded a copy of my complaint to HKMA telling them that I'll send this off if they don't comply.
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Old Mar 18, 19, 9:57 pm
  #21  
 
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I also encountered a huge loss when refunding an Aeroflot air ticket last year. It is not possible to buy the air ticket on Aeroflot web site in HKD, so I paid in RUB instead. The forex fee was 1.75% for that card.

Buy air ticket:
2018-05-03 RUB 70088 @ 0.1283515
Refund air ticket:
2018-06-13 RUB 67608 @ 0.1206081

I phoned the bank afterwards but the agent told that there was no problem on the rate. I have never used that card to buy air ticket since then, and now only use my CNY credit card to buy Aeroflot ticket and pay in CNY.
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