Currency conversion confusion

[Kirinafa]

Hello all! I am a young person with a bit of a learning disability, so please bare with me.

I had 410 in Canadian from a vacation that I didn't end up spending as much as I thought I was going to. Took it in to get converted. I asked before hand and they said there were no fees. I was ushered to a different person because the one I was at originally couldn't do conversions. Ive typed out the recipie because I can't post pics. It took the guy a long time, atleast 20minutes which has me worried he didn't do it correctly or there was a fee and I was lied to.

HOLD FILE CLEARING ACCT -127.10
Cash received: 410.00
Hundreds received: 100
Fifties received: 200.00
Twenties received: 100.00
Fives recieced: 10.00
Cash disbursed : 282.90
Fifties disbursed: 100.00
Twenties disbursed: 180.00
Ones disbursed: 2.00
Dimes disbursed: 0.10
Nickels disbursed: 0.05

I only got 282.90 back. What does "hold file clearing" mean? It's $127.10

I'm not sure what the conversion rates are now, but he said it was 60cents (I think that's what I remember him saying) When my friend looked it up online it was different.

Can someone please help a "slow person" before I take it in and embarrass myself lol

[msomnipotent]

The conversion rate is 79 American cents to the Canadian dollar. If there are no fees, you should be getting $324.28 in US currency back. I have converted quite a bit of currency in my years. There is always a fee. Companies can't stay in business if they don't charge for their services. In this case, it looks like the $127.10 is a pretty big fee. I have never heard of a hold file clearing account.

[disneysteve]

According to Google today, $410 Canadian would convert to $324.15 US. However, exchange rates change daily and the rate also varies by location. Some places give a rate closer to the official government rate while others give a less favorable conversion. That's how they make their money.

Where did this transaction take place? Did you do it at your own bank?

Based on today's rate, it looks like you paid a fee of about $41.00 or about 12.7%, though again, it depends what the rate was on the day you did it.

I just checked my bank. For $410 CAD you'd get back $306.15 USD, so they're charging about 5.6% for the transaction. That's a lot better than the 12.7% you paid.

[disneysteve]

it looks like the $127.10 is a pretty big fee.

He didn't pay $127. He paid $41. Still a lot but not quite as bad.

[bjl584]

Last time I went to Canada every place that we went gladly accepted US currency and gave change in US without any conversion.

[disneysteve]

Last time I went to Canada every place that we went gladly accepted US currency and gave change in US without any conversion.

Of course there was a conversion. It was just done for you.

Did you take the time to calculate the price in USD vs. CAD every time you made a purchase? It is often the case that the price they're charging isn't a good conversion rate and you'd be better off paying in CAD.

In other words, let's say the item was $20 CAD.
That would be $15.82 USD. But they had it marked $18 USD. That makes up for the conversion cost. It also lets them have a printed price that's a little padded so that they don't have to change the prices every day as the conversion fluctuates.

[bjl584]

Of course there was a conversion. It was just done for you.

Did you take the time to calculate the price in USD vs. CAD every time you made a purchase? It is often the case that the price they're charging isn't a good conversion rate and you'd be better off paying in CAD.

This was in 2008.
I think the exchange rate was almost par at the time, so there really was no conversion. I think the exchange rate only differed by a couple cents per dollar. Most things went on my credit card, so the cash that I did spend was a mute point.

[disneysteve]

I think the exchange rate was almost par at the time, so there really was no conversion. I think the exchange rate only differed by a couple cents per dollar.

Gotcha. You caught it at a somewhat odd time when the rates were almost identical. In that case, what you describe makes sense.

It wouldn't work that way today. A lot of places will price things in CAD and USD but unless you pull out the calculator each time, you won't know if you're getting ripped off.

[Kirinafa]

In a way of a update, I called them and they said the hold file clearing is how much was taken out due to the conversion. No fees. My vacation was a few years ago, back when the conversion rates were near identical. It was rather drastic when I saw how much I was getting back so I was pretty confused.

I have a joint account with my father, it was at his bank in WA

[disneysteve]

they said the hold file clearing is how much was taken out due to the conversion. No fees.

That's a pretty steep fee but if that's what they charge, I suppose there's nothing you can really do about it at this point.

If you ever travel internationally in the future, shop around and see who has a lower conversion fee. As I said, my bank (Bank of America) is charging about 5.7% while your bank charged 12.7% so there are definitely better deals out there.

[Kirinafa]

That's a pretty steep fee but if that's what they charge, I suppose there's nothing you can really do about it at this point.

If you ever travel internationally in the future, shop around and see who has a lower conversion fee. As I said, my bank (Bank of America) is charging about 5.7% while your bank charged 12.7% so there are definitely better deals out there.

There was no fee, the $127 was because of pure exchange rate. Nothing else. It was through credit union which they plainly stated they do exchanges for free with customers. I made sure of that, unless they are lying. So what I'm trying to figure out is if it was 60cents that day, would that equal 127 being taken out of what I would have received. I'm terrible at math and it doesn't help that my father also has a learning disability and he can't help me much either with this. I just feel like I've been ripped off somehow.

[disneysteve]

There was no fee, the $127 was because of pure exchange rate. Nothing else.

When was this exchange done? At the current exchange rate, with no fee, you should have gotten about $324, not $283.

Something is missing from this story.

[Kirinafa]

When was this exchange done? At the current exchange rate, with no fee, you should have gotten about $324, not $283.

Something is missing from this story.

July 4th of this month. My friend is saying they took 11 cents out of every dollar for something, maybe a hidden fee that the teller didn't know about. Or a mistake they made.

[disneysteve]

July 4th of this month.

Either they made a mistake or there was a fee they didn't tell you about.

The exchange rate on 7/4 was 0.7731 so converting 410 CAD to USD would have gotten you $322.92.

If you still have a receipt from the transaction, go back in and ask them to explain it to you. Speak to a manager if necessary to get someone who can walk you through it so that you understand what went on. And let us know what you find out.

[GrimJack]

I used to love visiting Canada; I could buy a 6-pack with a $20us, get the beer and a $20ca back - like free beer (it's a joke, son - a joke).