Neteller Canadian Exchange
 

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

Re: Neteller Canadian Exchange
 

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

Re: Neteller Canadian Exchange
 

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.

Re: Neteller Canadian Exchange
 

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.

Re: Neteller Canadian Exchange
 

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.

Re: Neteller Canadian Exchange
 

[ 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?

Re: Neteller Canadian Exchange
 

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.

Re: Neteller Canadian Exchange
 

Any other suggestions for someone outside the US?

Re: Neteller Canadian Exchange
 

[ 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 [img]/images/graemlins/grin.gif[/img] 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.

Re: Neteller Canadian Exchange
 

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