Currency Exchange AU$ vs US$

[birddog114]

Just an important note for our members who's ordering goods from overseas.

The current rate on the paper and on other published is AU$1.00 = US$0.78.

But please remember: once you want to wire transfer or made a CC payment to suppliers you have to add on and allow few factors as foreign currency transaction fees, selling/ buying rate of US$ from your bank.

Not every bank has the same rate of the day and their transaction fees are also varied, I have 3 accounts in three difference banks, I used and tested them all with recently transactions payment to Poon, Optech USA, RRS, Acratech Ballhead, and the outcome is quite surpirsed as the following:

Say the 70-200VR is selling US$1420.00 = AU$1893.33 based on US$75.00/ AU$1.00.
Or 80-400VR is US$1160.00 = AU$1546.00

I've just gone thru my CC same as other my accounts and found out using the rate published on the paper or news is not accuracy.
Please always allow 3 to 4 cents less than the rate you have seen.

[MHD]

I'll do a combank Visa analysis for you:

My UBH cost 318.95 including delivery
That converted to 413.99

I also got charged a 6.21 conversion fee

so this equals a proper rate of:
318.95/(413.99 + 6.21) = 0.759USD

not bad... not bad at all!!!

[birddog114]

Thanks,

You're right, all the Financial Institutions never follow the published rated and charged o/s telegraphic on wire transfer or other transaction fees if applicable.

US resellers take credit card payment but not from Poon or other Hong Kong resellers. Paypal is another way of payment but there's an additional hidden fees, and it's already added on the principal prices.

It's just a note to let our member know and understand:

How & what's the real money they have to pay for their import gears.
Otherwise they stick on the published rate then there's a gap holes for me to cover.

[gstark]

How & what's the real money they have to pay for their import gears. Otherwise they stick on the published rate then there's a gap holes for me to cover.

And that would not be what we want.

As a basic rule of thumb, if you take the published rate and subtract $0.03 from it, I think you'd be in the ballpark for a realistic conversion costing.

Thus, if the published rate is $0.78, use $0.75.

And FWIW, even if you're exchanging cash, the published rate is not what you'll get: the banks discount it whichever way you convert currency, and with credit cards they often impose a transaction fee as well.

I happen to think that practice is a rip-off, but who am I to accuse the banks of unfair practices?

[MHD]

beyond a doubt, when I travel, VISA (etc) is the way to go... it always gives me closest to the true exchange rates...

[Greg B]

Without wishing to defend banks in any way, there are several rates for foreign exchange

The selling rate and the buying rate are the main two, then there are sub categories, cash buying, traveller's cheques, drafts, etc etc.

Every bank more or less sets its own rates, as do the credit card companies.

The rate on the news each night, is just one rate.

A bank might sell you one USD for , say $1-28
They might buy it from you for $1-20

Foreign exchange is a huge money maker for all financial institutions. Some credit cards will do two conversions for other than USD - one to USD, then USD to AUD. You get screwed both times. And cards will have less favourable rates than standard Bank rates.

Poon quotes in AUD, that gives you certainty.

[Onyx]

Don't forget, the discrepency between market rates and that of your financial institution could also be accounted for by the fact that most charge a fee. eg. my St George Visa is slapped 1.5% for foreign transactions, prior to conversion. ie. If I made a $US100 purchase, the bank would take it to be $US101.50, and covert that amount at the current rate.

When the dollar goes up - just take it as good news generally. Don't expect the rate you see published as the rate you should get.