Amazon: Pay in NZD or USD ?

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surfisup1000

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Topic # 202052 15-Sep-2016 11:14

I bought something on amazon the other week.

Ran a test to see if amazon are making extra in fx fees --

Paying by NZD, the amazon converted amount was $333.68.

I changed payment currency to USD, and checked my CC Statement a few days later....

xxxx 9 Sep 2016 OFFSHORE SERVICE MARGINS $6.86 11 Sep 2016
xxxx 9 Sep 2016 Amazon.com AMZN.COM/BILL WA $326.57 11 Sep 2016

Total was $333.43

Amazingly close. Amazon are being fair with their fx fees which is nice.

sbiddle

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Reply # 1630778 15-Sep-2016 11:21

Amazon's conversion fees are actually OK. In the past I noticed they were only about 2.5% which is what most cards charge.

I always pay for things in foreign currency with a few exceptions - United airlines for example allow you to select either and their NZ price is real time using the midmarket rate. This means it actually works out 2.5% cheaper than paying in US$ and having the credit card margin applied.

jonathan18

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Reply # 1630829 15-Sep-2016 12:21

I happily pay in NZ$ on both Amazon and eBay; I'm not sure if the eBay conversion rate is as good as Amazon's, but I just find the convenience of knowing exactly the amount I'll be paying is more useful than the few cents I may save through paying in the original currency.

afe66

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Reply # 1630887 15-Sep-2016 13:16

If you pay in nz dollars does the bank /credit card charge an extra fee or is the same as if I bought in nz?

In past I only paid in nz dollars if I would claim it back from my employer. Ie I submit my Amazon receipt rather than a heavily redacted credit card statement 6 weeks later.

A.

jonathan18

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Reply # 1630899 15-Sep-2016 13:29

When you pay in NZ dollars there are no additional fees charged by the bank, hence you know to the cent what you will be paying for the item.

antoniosk

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Reply # 1630928 15-Sep-2016 13:53

jonathan18: When you pay in NZ dollars there are no additional fees charged by the bank, hence you know to the cent what you will be paying for the item.

Because the CC issuing bank builds margins into the exchange rate... not sure who is the worst, think BNZ is reaping via onesmart

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Antonios K