Converting $Cdn to Euro

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peter
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Re: Converting $Cdn to Euro

Post by peter » 09 Aug 2017 18:41

freedom_2008 wrote:
09 Aug 2017 17:31
pmj wrote:
09 Aug 2017 16:02
Here's Yahoo's graph. Best viewed within 24 hours.
https://ca.finance.yahoo.com/quote/CADEUR=X
To complicate life it displays (at least here) in British Summer Time - so it's 8 hours ahead of BC.

Mostly around 0.670 - ie €670 for $1000, better earlier in the day.
Yesterday (possibly the base for today's set-once-a-day rates) $1000 would have delivered mid to high €660's.
Checking €642 vs say €668 ... 642/668 = 0.961 - almost 4%.

The oft-quoted 2.5% is the surcharge levied on market-neutral rates - which are what Yahoo, etc, provide.
Several posters, myself included, have demonstrated that Amazon VISA, and Rogers MC before it changed, charge 0% on market-neutral rates.
Understand what you are saying. But we are not talking about regular credit cards transactions here, it is about loading the prepaid visa card, when you buy foreign money using CIBC foreign exchange rate (i.e. loading rate).

The loading rate is bad comparing to Yahoo/others, as I said before and also pointed out by you (close to 4%, probably similar as buy money from other banks). I am just saying that "CIBC charges a 2.5% surcharge for currency conversion when loading the debit card with a foreign currency" is not true.

p.s. Note we only do the loading when CAD is higher.

I don't think you understand at all. The mark-up compared to the spot market rate when buying euros is exactly what people are talking about here. And the 'do the loading when CAD is higher' means nothing, you still pay 2.5-4% more than the market rate. It might be a convenient mechanism but you pay just as much for the convenience as when you'd just pay with most credit cards (not including the Amazon Chase visa).

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kcowan
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Re: Converting $Cdn to Euro

Post by kcowan » 09 Aug 2017 19:22

I am always amazed when members here and some other smart places are in denial about bank FX rates. I guess there is good reason for the regulators to demand explicit fee disclosure.
For the fun of it...Keith

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freedom_2008
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Re: Converting $Cdn to Euro

Post by freedom_2008 » 10 Aug 2017 00:17

I am aware of bank FX rate, that was why I said CIBC rate is not the best. I also understand the make-up rate discussed. The loading make-up rate, like anyone walks into a bank to buy foreign money, is much higher (more than 2.5%) over the market-neutral rates. Totally agreed.

The 2.5% I referred to was specific just in OP posts quoted below. I just think this specific 2.5% surcharge wording is not for loading, but for regular card transactions. The CIBC wording didn't say it is for loading; Both CIBC VISA and CIBC bank people said there is no 2.5% surcharge (over their FX rate) for loading; Our CIBC loading records don't show it; The rate comparison doesn't show this specific 2.5% extra on loading over other methods (buying foreign money) in CIBC either. So that is the only thing I don't agree, as there is no fact pointing to and no one can prove it to me, that the prepaid card loading rate (as bad as close to 4% make-up over the market-neutral rate) is related to the specific CIBC wording of 2.5% surcharge for card transactions.
Arby wrote:
07 Aug 2017 11:24
freedom_2008 wrote:
07 Aug 2017 02:22
CIBC offers a prepaid euro (visa) debit card that you can load (i.e. CAD to EURO) the card from your CIBC account. You can use it online or on site for euro based purchases. You can ask the tour company if they accept debit card without the surcharge? Actually two of our neighbours just went for a bike + barge trip in Holland back in May and they used this card for all they needs.
CIBC charges a 2.5% surcharge for currency conversion when loading the debit card with a foreign currency.
Arby wrote:
07 Aug 2017 15:21
The 2.5% currency exchange fee for loading the CIBC Prepaid Travel Visa is described in the Terms and Conditions. See here near the bottom of the page under Terms and Conditions:
"CIBC foreign exchange rates apply when you purchase foreign currency to load onto a CIBC Smart Prepaid Travel Visa Card. Transactions (debits and credits) not in the currency of your card are converted into the currency of your card no later than the transaction posting date at an exchange rate that is 2.5% over the rate CIBC must pay."
Arby wrote:
08 Aug 2017 10:19
freedom_2008 wrote:
07 Aug 2017 16:22
Our records of loading on both CIBC account and prepaid visa show no surcharge fee, just the exchange rate at the time (see my last post).
I expect the 2.5% currency exchange surcharge would not be broken out as a separate fee, rather the 2.5% would be embedded in the exchange rate. That's what happens with foreign currency charges on my credit cards.

Also, wouldn't loading the CIBC Prepaid card be considered as a debit transaction?
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Arby
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Re: Converting $Cdn to Euro

Post by Arby » 10 Aug 2017 10:32

freedom2008 ...thanks for your replies. Too often these type of discussions deteriorate into personal insults, but you have responded in a calm and rationale manner.

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freedom_2008
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Re: Converting $Cdn to Euro

Post by freedom_2008 » 10 Aug 2017 11:29

Thanks Arby and you earned my respect :thumbsup:

While I do wish people can read through posts and respond with facts, not assumptions and personal insults, we can't change what others do. But we can always try to do right thing ourselves and feel good about it.
"Happiness is when what you think, what you say, and what you do are in harmony" -- Mahatma Gandhi

"Life is really simple, but we insist on making it complicated" - from a wise person

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