Exchange rates - Buying goods online

Exchange rates - Buying goods online

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Discussion

lord-of-creation

Original Poster:

3,214 posts

194 months

Sunday 13th March 2011
quotequote all
Managing to confuse myself with this one despite it being quite simple to work out

Given current exchange rates, if one was to buy something from an American website, would it make more sense to pay for it out of an English bank account using pound sterling or an Australian bank account?

Or even just buying something from the uk, i'd have thought that given the exchange rate it would be beneficial to pay with it using Aussie Dollars but when i've looked at my account it worked out a tiny bit more expensive than if i'd just paid in sterling which has confused me somewhat

STURBO

322 posts

161 months

Sunday 13th March 2011
quotequote all
I take it the item is priced in USD?

If you then choose to pay in another currency then your card company will convert it into your local currency. They normally then stitch you up for 1-2% currency fee.

Either way it should be more or less the same price when you then convert back to GBP.

mcflurry

9,099 posts

254 months

Monday 14th March 2011
quotequote all
USD 100 = GBP62.12
USD 100 = AUD 99.23
AUD 99.23 = GBP 62.12

^--^