Forum Moderators: martinibuster
However, they also charge a currency conversion fee that I can never quite calculate but would assume to be about 2.75% like most credit cards. So for example, if the exchange rates were 1.87 Dollars to the pound, the actual currency conversion would be done at 1.92 Dollars to the pound (1.87 x 2.75%).
Now I don't have a problem with paying £9 processing fee, but the currency conversion fee obviously becomes quite significant as your commission cheques rise. What's more annoying is the charge signifies that it costs more to convert a higher Dollar value cheque, which is simply not true. So this charge is a blatant rip off.
So does anyone know how to avoid the currency conversion fee? PayPal even charges 2.5%, which is obviously better than 2.75% + £9, but still.
I now receive a normal postal cheque in Sterling the day following Google's web site notification and the conversion is a very acceptable mid-market rate.
It can also be paid into any UK sterling bank account:-))
Why would anyone in the UK not use the EFT? - I'm not being facetious - just wondering if there is an overriding reason not to use it for some.
Firstly a posted cheque arrives the day after the Adsense notification and secondly:
It can also be paid into any UK Sterling bank account:-))
This also includes UK Sterling offshore accounts too...need I explain any further?
that makes sense, I would never have thought of that as I don't have an offshore account (I'm not a very strong swimmer and have a poor sense of direction - I'd probably drown before I found an ATM).
I also use EFT: money is there at the end of the month and it subverts the cheque charge. Why would anyone in the UK not use the EFT? - I'm not being facetious - just wondering if there is an overriding reason not to use it for some.
Hi
I pay in other US cheques as well so I have to pay the £9 charge anyway. What I specifically want to avoid is the percentage commission on the currency conversion, which I don't know if EFT does?
Everytime you convert Dollar to Sterling, or Sterling to Dollar, you normally get charged a commission fee (usually 2.75% of the amount billed) to convert the currency. So that's the current exchange rate, add 2.75%, and then the conversion takes place. The bank, or entity that performs the conversion pockets the 2.75%.
Now if you're interested, Nationwide offer 0% conversion commission on foreign transactions with their credit cards, so I no longer get this 2.75% commission fee on everything I SPEND in Dollars (Adwords, Overture, US Program Memberships, etc).
But now I'm trying to find a way of eliminating this charge when converting US Dollar to Sterling. The fact Nationwide can elimiate it goes to show it's completely unnecessary and it annoys me that a bank is eating into my profits. When you are paying in large commission checks, this percentage charge adds up to hundreds of pounds of lost revenue over a year.
Insofar as I am aware the EFT is converted into Sterling at exactly the same exchange rate as a postal cheque and that is the mid-market rate.
You'll not get a better exchange rate with any bank unless you happen to have a friend who's a currency trader who'll do it for absolutely nothing.
I trade in various currencies every week and I can assure you that the Google deal is a good one.
I'd probably drown before I found an ATM).
You can have an offshore Sterling account with an offshore ATM card.
It works exactly the same...shhh:-)
