Conversion Fees

[zman]

Hi guys i been playing at 32red pretty much exclusivly, but have a problem here.

Please have a look below.

100 pound deposit
$184.84

1000 pound cashout
$1,778.46

Why is there close to 60 USD difference in the conversion fees? Is this 32red or Neteller? I have lost close to 200 usd worth of bs conversion and will stand to lose another 100-150 when i get another cashout.

 

[Gluten]

It is neteller, those greedy ***** I suggest you get another webwallet for other currencies than $ - like moneybookers. Or have 32red close your account and reopen a new one in $ currency. Neteller really has some nasty fees.

 

[zman]

1848 - 1778 = $70
70/1778 = 3.9%

They are charging me 3.9% then the conversion fee....

 

[Dirk Diggler]

That's right I'm afraid - and unfortunately Click2Pay are at pretty much the same rate.

Moneybookers are great and very fair with their rates - it's just a shame more casinos don't use them (I don't think 32red does).

Surely Neteller must make enough off of us all without charging rip off rates like that. I was actually on the verge of closing my account with them a while back when they tried to force me into taking their exchange rate when I wanted to make a withdrawal from my account in the $USD it is in.

It was going to cost me several hundred on the exchange rate they charge and I ended up having to threaten reporting them to the FSA before they backed down.

 

[Simmo!]

Yup its NETeller alright.

I have a 32Red $ account and a NETeller account. If you do regular cashouts and like me you are "Club Rouge", have a chat with 32R. When i do a decent cashout, they very kindly sometimes convert it for me before paying so i dont get the NETeller charges

I don't take the piss on small cashouts but when its a decent wedge...

Cheers

Simmo!

 

[zman]

Yeah am trying to get them to do that tonight, hopefully they can do it.

 

[jetset]

QUOTE: I ended up having to threaten reporting them to the FSA before they backed down.UNQUOTE

That's a useful thought, DD and operating from the Isle of Man that takes financial professionalism seriously, one that Neteller should carefully consider.

 

[Vesuvio]

It's usually much cheaper to use cards for large deposits if your Neteller account's in a different currency e.g. UK players depositing at PartyPoker with a debit card get their deposits & withdrawals converted at the current bank rate - otherwise the Neteller "rake" eats half of the bonus for most of their offers! I sometimes wonder if Neteller wouldn't make the same profit from a much smaller fee as they'd find far more money moving through their hands.

 

[sirius]

I'm confused here. I thought Neteller only charged 1.9% for foreign currency. It would compound to about 3.9% difference both ways but that is not high. Most Credits cards charge more than this (a 2.75% rate would compound to nearly 6%) although some don't charge anything.

2% is also about the same charge banks use for depositing a foreign cheque. These charges are not something they really highlight but you can work it out from the rates they use.

 

[zman]

I wasnt making a deposit, i was getting a cashout.

And it was 3.93% to be exact....., changed my 32red to usd and 32red took me for $40 off exchange rates also sad...

 

[GrandMaster]

Zman: Are you in the UK? If so, why are you not using a credit or debit card instead of Neteller? If not, why are you playing in pounds?

Let me recommend again the Nationwide Building Society to UK players. Nationwide does not charge any conversion fees for foreign currency transactions on credit or debit cards, which is a great deal for gambling or travelling abroad.

 

[Dirk Diggler]

I'm confused here. I thought Neteller only charged 1.9% for foreign currency. It would compound to about 3.9% difference both ways but that is not high. Most Credits cards charge more than this (a 2.75% rate would compound to nearly 6%) although some don't charge anything.

2% is also about the same charge banks use for depositing a foreign cheque. These charges are not something they really highlight but you can work it out from the rates they use.

That's fair enough but there are actually many banks out there that don't make these charges - Citibank in the UK for one. You can actually have $USD and EUR accounts free of charge which you can use to withdraw foreign currency free of charge whenever abroad or make purchases in foreign currency, or similarly they cash foreign cheques for free in GBP current accounts. The exchange rate is very reasonable when compared to what you get with Neteller.

 

[tim5ny]

I know a couple of Loan Sharks that can give you a better rate than Neteller! They should be arrested for rape!

 

[sirius]

100 pound deposit
$184.84 The rate before the 1.9% would be about 1.813935 because 101.9% of that is the rate used (1.8484).

1000 pound cashout
$1,778.46 Assuming the rate didn't change, they would then take off 1.9% of the amount given by the 1.8139 rate which gives 1779.47 which is very close to what you got back

Think about this logically. All banks charge a fee to cover themselves otherwise you could trade the currencies for no cost but there is always a sell and buy price difference! The extra rate according to neteller is 1.9% so this is 1.019^2= compounded which is nearly 3.84% (the overall difference between depositing and then withdrawing again the same amount). The base rate used may fluctuate but they use the same rate for each transaction (there is no buy and sell difference). Credits cards usually charge a similar amount or more.

Dirk, have you tried exchanging one currency into another currency account at citibank and then moving the same amount back!? There will probably be a difference even if the real exchange rate doesn't change much (probably about 2-4%). I'm no expert on where they get their exchange rate from, but there should be a difference.

 

[dominique]

Last time I went to Europe I bought Euros - at a really high rate. I spent 3 weeks in Europe and didn't spend all the cash I had. I changed some back and ended up losing almost 5%.

From now on I will not ever change it back again but keep it around until I travel again.

Money exchange = highway robbery.

 

[sharpgambler]

When you open a neteller account the best is to spend some time deciding what the best currency is.

Some years ago when I opened my account I decided to go with Euro. Soon I realised that I received money in USD, neteller convert that to euro, then I request a withdrawal, neteller convert the funds to usd again to send me a usd cheque. Then I go to my bank and they convert it to euro. Well, toooo much commissions.

Now it's possible to use wire transfer, and the best thing is to keep the neteller account in your bank currency. If you request a withdrawal of 1000 from your neteller account to an European Bank, you pay exactly 10.50 for the service and no exchange commission here.

I also applied for a neteller debit card and soon realise that if I use it I will inccur in high commissions, because they convert the funds in your account to canadian dollar. Then when you use the card the funds are again converted. So you have an Euro account and lose commission 2 times.

 

[zman]

I wasnt making a deposit, i was getting a cashout.

And it was 3.93% to be exact....., changed my 32red to usd and 32red took me for $40 off exchange rates also sad...

Soz 32red, i wish i could edit that, it was just a misunderstanding . I just used a different exchange rate from a different site. No money missing from 32red!

Just wish i could get into the rouge club

 

[KasinoKing]

Just wish i could get into the rouge club

Me too!

But apparently I need to wager 13,650x more per month than I do at present...
Or lose 487x more...

 

[zman]

check your pm KK :notworthy