Geekzone: technology news, blogs, forums
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.


1937 posts

Uber Geek
Inactive user

#60607 28-Apr-2010 21:06
Send private message

I haven't placed any Amazon.UK orders for quite some time and when I went in tonight I found that I was offered Amazon's own currency conversion service. Basically here's how it works (as far as I can work out):

Usually you buy from overseas website. The cost of your order is only locked in the website local currency (ie. GBP for Amazon.UK). They may take a day or longer to sort out your order. When your order ships, they charge your CC for the GBP amount. In the mean time the currency rate may have fluctuated - you pay whatever your bank rate is for that day, PLUS a currency conversion fee of between 1% and 3.5% depending on your card issuer.

Amazon now lets NZers be charged in NZD instead, with the following potential advantages:

No fluctuation - the price quoted in your baskets (in NZD) is what you are billed for, in NZD. Ideally you also get no currency conversion fee either, because technically you are billed in NZD, and should not be charged for any foreign currency conversion. However Amazon disclaim that your card issuer MAY still impose fees (not specified what these fees might be).

Has anyone used Amazon's Currency Converter? I am blessed in that I have the cheapest credit card in New Zealand for overseas purchases and only pay 1% or 1.1% (I forget). That's the MasterCard fee - my card issuer is the only one I know of in NZ that doesn't add their own fee to "clip the ticket" (cheers The Warehouse Financial Services).

I'm curious as to whether the Amazon currency conversion rates are less competitive than our local banks, thereby reducing any benefit (and potentially increasing the overall cost).

But then again the rates may in fact be quite low. Does anyone know from experience or care to comment?

Create new topic
3316 posts

Uber Geek


  #324558 29-Apr-2010 09:43
Send private message

I never use it and it's always ends up cheaper using my ASB Visa (2.1% margin = 0.85% Visa + 1.25% ASB). Maybe I've always gotten lucky with currency fluctuations, but I suspect that Amazon use less than favourable rates or include a margin at least equal to the bank/CC.

453 posts

Ultimate Geek

  #324597 29-Apr-2010 10:41
Send private message

It stands to reason that any company that is accepting risk, in this case currency fluctuation, that they would offer the most favorable rate for themselves plus a margin of error.

Create new topic

News »

Nanoleaf enhances lighting line with launch of Triangles and Mini Triangles
Posted 17-Oct-2020 20:18

Synology unveils DS1621+ 
Posted 17-Oct-2020 20:12

Ingram Micro introduces FootfallCam to New Zealand channel
Posted 17-Oct-2020 20:06

Dropbox adopts Virtual First working policy
Posted 17-Oct-2020 19:47

OPPO announces Reno4 Series 5G line-up in NZ
Posted 16-Oct-2020 08:52

Microsoft Highway to a Hundred expands to Asia Pacific
Posted 14-Oct-2020 09:34

Spark turns on 5G in Auckland
Posted 14-Oct-2020 09:29

AMD Launches AMD Ryzen 5000 Series Desktop Processors
Posted 9-Oct-2020 10:13

Teletrac Navman launches integrated multi-camera solution for transport and logistics industry
Posted 8-Oct-2020 10:57

Farmside hits 10,000 RBI customers
Posted 7-Oct-2020 15:32

NordVPN starts deploying colocated servers
Posted 7-Oct-2020 09:00

Google introduces Nest Wifi routers in New Zealand
Posted 7-Oct-2020 05:00

Orcon to bundle Google Nest Wifi router with new accounts
Posted 7-Oct-2020 05:00

Epay and Centrapay partner to create digital gift cards
Posted 2-Oct-2020 17:34

Inseego launches 5G MiFi M2000 mobile hotspot
Posted 2-Oct-2020 14:53

Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.

Support Geekzone »

Our community of supporters help make Geekzone possible. Click the button below to join them.

Support Geezone on PressPatron

Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.