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




22698 posts

Uber Geek

Trusted
Lifetime subscriber

#270418 8-May-2020 14:33
Send private message quote this post

We have a vendor who requires payment in USD, and the quantities are likely to grow reasonably.

 

The NZD isn't great right now, and I am unsure where it goes. One option we have is to "prepay" what we think we might spend in a year and them deduct the amount owed monthly from our balance.

 

This would hopefully give us a a bit of a better rate over what we would pay on a credit card, even as a one off, and also allow us to control what the licenses cost us for a while. We stand to be worse off if the exchange rate comes back a bit, but it does at least give us price certainty.

 

I am not entirely sure how this would work, but do you buy an amount of USD at an agreed rate, and then do the transfer to the vendor as one transaction, or would you buy the forex and then transact separately to the vendor, and are their typically fees around this, we would need to take into account? If the fees for transfer were quite low, then I'd probably pay the vendor in chucks, but if they are high, then I'd probably do it as a single transaction.

 

How much do forex rates for under 10K USD vary from what I'd pay on my credit card, and if not, then I could skip the fuss and just pay that way, though I expect the rates I'd get to be horribly low.

 

 

 

Thanks for any advice...

 

 

 

 


Create new topic
41 posts

Geek


  #2479401 8-May-2020 16:19
Send private message quote this post

Have been sending to Australia via Ofx, really good to deal with, branches all over the world

 

Check their rates:

 

https://www.ofx.com/en-nz/forex-news/


890 posts

Ultimate Geek

Trusted
Subscriber

  #2479443 8-May-2020 17:30
Send private message quote this post

oldbusdriver:

 

Have been sending to Australia via Ofx, really good to deal with, branches all over the world

 

Check their rates:

 

https://www.ofx.com/en-nz/forex-news/

 

 

 

 

Have been using Ofx for the past 14 years and service has been excellent. 


 
 
 
 




22698 posts

Uber Geek

Trusted
Lifetime subscriber

  #2481342 11-May-2020 16:04
Send private message quote this post

oldbusdriver:

 

Have been sending to Australia via Ofx, really good to deal with, branches all over the world

 

Check their rates:

 

https://www.ofx.com/en-nz/forex-news/

 

 

@oldbusdriver

 

Thanks for that. Would you know off the top of your head, is it a matter of buying an amount of currency and then doing transfers to places (in my case the same place repeatedly) where you pay the exchanged rate, and then a fee to transfer each time? Do you know roughly what the fee is?

 

Thanks!


3893 posts

Uber Geek

Trusted
Lifetime subscriber

  #2481354 11-May-2020 16:34
Send private message quote this post

There are plenty of non bank options for FOREX. Most of them let you buy money and leave them in an "account".

I use currencyfair.com as they have lower fees for larger transfers. Transferwise.com is another one that gets widespread use and works out cheaper for smaller transfers.

The NZD:USD rate is pretty woeful at the moment. The trend is it is recovering a bit.

1284 posts

Uber Geek


  #2481368 11-May-2020 16:59
Send private message quote this post

Transferwise? They will let you load in 1 currency from an NZ bank, Conver to USD and pay out to US bank accoutns





Most problems are the result of previous solutions...

All comment's I make are my own personal opinion and do not in any way, shape or form reflect the views of current or former employers unless specifically stated 



22698 posts

Uber Geek

Trusted
Lifetime subscriber

  #2481375 11-May-2020 17:07
Send private message quote this post

Beccara:

 

Transferwise? They will let you load in 1 currency from an NZ bank, Conver to USD and pay out to US bank accoutns

 

 

 

 

I'd ideally like something where I can transfer amounts from a USD account to the vendor in question in reasonably sized chunks, but the other option is to pay them a larger amount and put my account into credit. I expect the total to be around 2-4K USD a year, though it could be more than that depending. I am not sure it's worth the hassle depending on what fees might be for a USD to USD account? NZD to NZD there aren't any real transfer fee's but I think when I checked last time, the US charges a fee per transaction?

 

It would be easier if there was an online credit card transfer calculator on Kiwibanks website.

 

 

 

 


3893 posts

Uber Geek

Trusted
Lifetime subscriber

  #2481380 11-May-2020 17:10
Send private message quote this post

networkn:

Beccara:


Transferwise? They will let you load in 1 currency from an NZ bank, Conver to USD and pay out to US bank accoutns



 


I'd ideally like something where I can transfer amounts from a USD account to the vendor in question in reasonably sized chunks, but the other option is to pay them a larger amount and put my account into credit. I expect the total to be around 2-4K USD a year, though it could be more than that depending. I am not sure it's worth the hassle depending on what fees might be for a USD to USD account? NZD to NZD there aren't any real transfer fee's but I think when I checked last time, the US charges a fee per transaction?


It would be easier if there was an online credit card transfer calculator on Kiwibanks website.


 


 


For such a small amount why would you bother?

You might save $20-$50

 
 
 
 




22698 posts

Uber Geek

Trusted
Lifetime subscriber

  #2481399 11-May-2020 17:27
Send private message quote this post

Handle9:
For such a small amount why would you bother?

You might save $20-$50

 

That is what I am trying to determine.  The issue is the vendor charges monthly, and the customers want annual invoicing, and currency fluctuations could be reasonably all over the place.


437 posts

Ultimate Geek


  #2481413 11-May-2020 17:44
Send private message quote this post

Handle9: I use currencyfair.com as they have lower fees for larger transfers. Transferwise.com is another one that gets widespread use and works out cheaper for smaller transfers.

 

Just did a comparison, buying a reasonable amount of HUF which I do regularly. Transferwise was still $10 cheaper. How high before currencyfair gets cheaper in your experience?


3893 posts

Uber Geek

Trusted
Lifetime subscriber

  #2481417 11-May-2020 17:51
Send private message quote this post

networkn:

 

Handle9:
For such a small amount why would you bother?

You might save $20-$50

 

That is what I am trying to determine.  The issue is the vendor charges monthly, and the customers want annual invoicing, and currency fluctuations could be reasonably all over the place.

 

 

I guess in that case I would align the costs with the customer invoicing (prepay). Are the customers particularly price conscious?

 

If they are paying an annual invoice in advance then your risk is closed off and the client has the risk of vendor non-performance. If your contract covers that off, and you have communicated the risk to the client, then you have done all you can do.

 

 


3893 posts

Uber Geek

Trusted
Lifetime subscriber

  #2481421 11-May-2020 17:53
Send private message quote this post

Delphinus:

 

Handle9: I use currencyfair.com as they have lower fees for larger transfers. Transferwise.com is another one that gets widespread use and works out cheaper for smaller transfers.

 

Just did a comparison, buying a reasonable amount of HUF which I do regularly. Transferwise was still $10 cheaper. How high before currencyfair gets cheaper in your experience?

 

 

I'm usually transferring about NZ$10k into NZ from overseas. Currencyfair charge a $5 flat fee compared to a percentage, they also seem to have slightly better rates. 

 

I think the crossover is usually $2k-3k but YMMV. With rates being all over the show timing matters at the moment.


10365 posts

Uber Geek


  #2481457 11-May-2020 19:05
Send private message quote this post

networkn:

 

Handle9:
For such a small amount why would you bother?

You might save $20-$50

 

That is what I am trying to determine.  The issue is the vendor charges monthly, and the customers want annual invoicing, and currency fluctuations could be reasonably all over the place.

 

 

I used to do trading mainly buying in USD, mainly selling in NZD - and a lot of long term supply contracts with "terms" that never matched.  So you need to minimise risk.

 

Transaction values were high, profit margins were relatively low %.  If you're selling in fixed NZD (not adjusted to USD:NZD exchange rate) you're probably best talking to a bank to lock in profits on fixed orders by hedging currency movements by buying currency futures contracts.  I don't know how it works now but a few years ago I'd be able to do it all on the phone - phone forex dealer at the bank and get quoted rates held for x minutes (usually an hour) - confirm the order from the client, call the bank to fix the forex futures contracts.

Not sure where you're at or how much is at stake or how you're planning to do this or how the banks treat smaller customers - sounds to me like you probably need to be talking to the right people at the bank.  If it's just a few thousand $$ - then they'll probably not be very interested - in which case you can only cover risk by passing currency risk to your customer. (Edit - or buying all your USD now - if cashflow will sustain that ). That's actually a sales job - and a reasonable customer should understand.  If not - then walk away.


Create new topic





Twitter and LinkedIn »



Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

Chorus completes the build and commissioning of two new core Ethernet switches
Posted 8-Jul-2020 09:48


National Institute for Health Innovation develops treatment app for gambling
Posted 6-Jul-2020 16:25


Nokia 2.3 to be available in New Zealand
Posted 6-Jul-2020 12:30


Menulog change colours as parent company merges with Dutch food delivery service
Posted 2-Jul-2020 07:53


Techweek2020 goes digital to make it easier for Kiwis to connect and learn
Posted 2-Jul-2020 07:48


Catalyst Cloud launches new Solutions Hub to support their kiwi Partners and Customers
Posted 2-Jul-2020 07:44


Microsoft to help New Zealand job seekers acquire new digital skills needed for the COVID-19 economy
Posted 2-Jul-2020 07:41


Hewlett Packard Enterprise introduces new HPE GreenLake cloud services
Posted 24-Jun-2020 08:07


New cloud data protection services from Hewlett Packard Enterprise
Posted 24-Jun-2020 07:58


Hewlett Packard Enterprise unveils HPE Ezmeral, new software portfolio and brand
Posted 24-Jun-2020 07:10


Apple reveals new developer technologies to foster the next generation of apps
Posted 23-Jun-2020 15:30


Poly introduces solutions for Microsoft Teams Rooms
Posted 23-Jun-2020 15:14


Lenovo launches new ThinkPad P Series mobile workstations
Posted 23-Jun-2020 09:17


Lenovo brings Linux certification to ThinkPad and ThinkStation Workstation portfolio
Posted 23-Jun-2020 08:56


Apple introduces new features for iPhone iOS14 and iPadOS 14
Posted 23-Jun-2020 08:28



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.