Thread: Bank Exchange Rate Rip-Off

In the future use OzForex or OFX I think they call themselves now. They give a much better rate than banks, and the deal price is locked in when you accept it. I have used them for a long while now. They will also negotiate better deals for larger amounts.

Sorry not sure what the real issue is - yes the Reserve Bank rate is the official rate but that is not the buy and sell rate that is actually used - effectively what the bank is giving you is the exchange rate less their commission - $14,000 on $600,000 is about 2.5% - that would seem about right.

Same process applies if buying a $100 item in USD and you are paying in AUD.

Really the cost of doing business. No point in complaining to the ombudsman as it would seem to be inline with current rules.

Rather than doing an electronic tranfer of aussie to kiwi - maybe shop around the currency dealers/other banks and see if you can get a better deal and deposit the kiwi dollars you get straight into the kiwi account.

Originally Posted by garrycol

Sorry not sure what the real issue is - yes the Reserve Bank rate is the official rate but that is not the buy and sell rate that is actually used - effectively what the bank is giving you is the exchange rate less their commission - $14,000 on $600,000 is about 2.5% - that would seem about right.

Same process applies if buying a $100 item in USD and you are paying in AUD.

Really the cost of doing business. No point in complaining to the ombudsman as it would seem to be inline with current rules.

Rather than doing an electronic tranfer of aussie to kiwi - maybe shop around the currency dealers/other banks and see if you can get a better deal and deposit the kiwi dollars you get straight into the kiwi account.

Man That BS from the capital has escaped , I thought it was caught with in the walls of Parliament House .
What you dont see a problem that they can knock $14,000 off with out a hoot and still make a nice profit
Nah this is a lesson for new players for sure good on you for getting into them , At least you saved a bit of doh from them lying cheating rip off merchants

Originally Posted by garrycol

Sorry not sure what the real issue is - yes the Reserve Bank rate is the official rate but that is not the buy and sell rate that is actually used - effectively what the bank is giving you is the exchange rate less their commission - $14,000 on $600,000 is about 2.5% - that would seem about right.

Same process applies if buying a $100 item in USD and you are paying in AUD.

Really the cost of doing business. No point in complaining to the ombudsman as it would seem to be inline with current rules.

Rather than doing an electronic tranfer of aussie to kiwi - maybe shop around the currency dealers/other banks and see if you can get a better deal and deposit the kiwi dollars you get straight into the kiwi account.

I think he means they knocked $14000 off the total amount and they still charged at a higher rate than the official reserve exchange rate.

When other foreign exchange agencies can do much better on the deal than the banks...and obviously still make money...it would appear that the banks are making quite a nice little sum. One just needs to shop around. Not hard to do.

One way around it all is to have/open your own account in the other country and transfer your own money into it which can then be used for the payment.

An international transfer of your own money then occurs at the ruling interbank rate - no commission is charged, because it is your own money

Originally Posted by 87County

One way around it all is to have/open your own account in the other country and transfer your own money into it which can then be used for the payment.

An international transfer of your own money then occurs at the ruling interbank rate - no commission is charged, because it is your own money

Yes, this is the way that I do it to Thailand. Always get a better rate by the bank in Thailand and the NAB in Oz just charge a $30 TT fee. Last year the branch that did it changed the written instructions without telling my mates wife that does it for me. After getting fobbed off by the then manager at the branch in Oz, I took it up with NAB and they credited me $400 because of the stuff up. And the manager suddenly "resigned"!

Originally Posted by Gordie

In the future use OzForex or OFX I think they call themselves now. They give a much better rate than banks, and the deal price is locked in when you accept it. I have used them for a long while now. They will also negotiate better deals for larger amounts.

X2 I used OZFOREX a few years ago on a regular basis for transfers to Canada.