Neteller Canadian Exchange

[AleoMagus]

Maybe I'm missing something about the way money and exchange rates work, but this seemed strange to me...

A withdrawl to Cdn$ on Neteller right now has an exchange rate of 1.207 Cdn for each american dollar.

But...

A Deposit has an exchange of 0.7974 American for each Cdn$.

This would mean that if I withdrew $100 US, I'd get about $120 Cdn, but that if I deposited this same money back on to neteller, I'd only get about $96 US.

Shouldn't the exchange be the same either way? I could understand some sort of fee established for these transactions, but this seems to be a hidden cost.

Regards
Brad S

[lefty rosen]

The street term is vigorish. Basically it's their profit.

[Isura]

Yeah, this part sucks. What I tried was opening a US funds account at my bank. BUT, the problem is that Neteller won't allow me to use the new account to make my withdrawals, which really sucks. I don't know if anyone has gotten around this problem yet. This was a few months ago, maybe I should check if they've changed their policies.

[Yads]

It's like when you go to an exchange shop, you'll notice they have 2 prices a buy and sell price. They are always different.

[The Mayher]

Ok ,let me clear this up for you.
A freind & I had a bet about this yeras ago & so we got the definitive answer.It's almoost a play on words
Here it is............
One is the "rate of exchange".....namely what it would cost you to buy " $100,so 1.207 Canadian buys you $100 U.S,
conversely,the other is the % rate & that means what it would get for each Canadian dolaar so the0.7974 is what you would get on any one unit.Og course thet still get the vig between those 2 numbers,which is usually about 2 points on the buy & the sell both.Hopefully not much more.

[meow_meow]

[ QUOTE ]
Yeah, this part sucks. What I tried was opening a US funds account at my bank. BUT, the problem is that Neteller won't allow me to use the new account to make my withdrawals, which really sucks. I don't know if anyone has gotten around this problem yet. This was a few months ago, maybe I should check if they've changed their policies.

[/ QUOTE ]

I did this exact same thing. When I complained to neteller and asked for an explanation, they said it was for "security" reasons.....uh huh. More like "taking 2% of your money after the poker site has already paid us a fee" reasons.

Has anybody in canada tried getting a USD check mailed from Neteller, and if so, how did it work out?

[Bellagibro]

Neteller is a big ripoff when it comes to exchange rates. I used to play on some uk casinos in gbp and they got a good chunk of change from me.

[Isura]

Any other suggestions for someone outside the US?

[LoyalFrush]

[ QUOTE ]

Has anybody in canada tried getting a USD check mailed from Neteller, and if so, how did it work out?

[/ QUOTE ]

Yes, it works fine. Rather than getting screwed by the Neteller exchange rates you just get screwed by your bank /images/graemlins/grin.gif The bank will probably put a 15 day hold on the funds while the check clears (at least the first couple of times). I deposited a check a week ago but don't expect any problems once the 15 days are up. If the check is for a significant amount just keep an eye on the exchange rates and cash it on a day where the exchange rate makes a favorable jump.

[sourbeaver]

There is always a "spread" in those transactions, which is the remuneration for the middle man who handles the settlement for the transactions.

[rusty JEDI]

[ QUOTE ]


Has anybody in canada tried getting a USD check mailed from Neteller, and if so, how did it work out?

[/ QUOTE ]


I used to have it done this way before i certified my account and there was a 30 business day wait.

Also there are several exchange rates

At the bank US cash for Canadian $$.....best, but still a fee, so if you just kept exchanging back and forth you would end up at $0
At the bank US check for Canadian $$....not as good
At neteller US account to Can. $$ account...even worse
A credit card currency exchange.............the worst

It was explained to me that neteller takes the current bank exchange rate and the credit card exchange rate and takes the midpoint for their exchange rate.

rJ

[meow_meow]

[ QUOTE ]
[ QUOTE ]

Has anybody in canada tried getting a USD check mailed from Neteller, and if so, how did it work out?

[/ QUOTE ]

Yes, it works fine. Rather than getting screwed by the Neteller exchange rates you just get screwed by your bank /images/graemlins/grin.gif The bank will probably put a 15 day hold on the funds while the check clears (at least the first couple of times). I deposited a check a week ago but don't expect any problems once the 15 days are up. If the check is for a significant amount just keep an eye on the exchange rates and cash it on a day where the exchange rate makes a favorable jump.

[/ QUOTE ]

Actually planning to put it in my USD checking accout, so would save double conversion for me.

[rusty JEDI]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]

Has anybody in canada tried getting a USD check mailed from Neteller, and if so, how did it work out?

[/ QUOTE ]

Yes, it works fine. Rather than getting screwed by the Neteller exchange rates you just get screwed by your bank /images/graemlins/grin.gif The bank will probably put a 15 day hold on the funds while the check clears (at least the first couple of times). I deposited a check a week ago but don't expect any problems once the 15 days are up. If the check is for a significant amount just keep an eye on the exchange rates and cash it on a day where the exchange rate makes a favorable jump.

[/ QUOTE ]

Actually planning to put it in my USD checking accout, so would save double conversion for me.

[/ QUOTE ]


I would double check with neteller about doing this one.

I think that because you are in Canada they wont allow this, and if they do it will go something like this.

Neteller in US funds converted to Canadian funds (Neteller makes exchange profit). Now the bank takes the Canadian funds and puts them into US funds because that is what your account is in(bank makes money on the exchange).

I think you will end up getting charged on two exchanges.

rJ