Personal Finance

Exchange Rate Fluctuations - TD Aeroplan Visa Infinite

  • Last Updated:
  • Feb 23rd, 2021 2:02 pm
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Newbie
Feb 22, 2021
1 posts

Exchange Rate Fluctuations - TD Aeroplan Visa Infinite

I have a tricky question which I was looking for some advice for. Here is the scoop:

I am using my TD Aeroplan card to buy items at this online auction place (Nba Topshots). The way it works is that I put in a bid for a player, they charge my credit card in USD and then if my bid was unsuccessful, they refund my credit card for the exact same amount in USD within seconds. What I am finding out now is that for a lot of my unsuccessful bids, I am paying significant fees to TD because they claim that the exchange rate is fluctuating by a rather significant? amount. Now I understand rates change but the fluctuations seem staggeringly large on my statements. Here is an example bid which failed: I was charged $358.20 USD which was converted at 1.30226 for $466.47 CAD and then refunded seconds later for $358.20 USD which was converted at 1.22909 and a refund in $440.26 CAD. So I lost out on $16 on exchange rate fluctuations according to TD but I smell some bs on that claim. Is it possible for the exchange rate to go from 1.30226 to 1.22909 within seconds? I thought the exchange rate rarely moves like a .01 point a day, what the deal here?

I have a few of these charges, not sure if its worth it to get on more long calls with a CSR over it. Was hoping someone here has some insight into this.
2 replies
Member
Nov 26, 2012
330 posts
284 upvotes
Toronto
That's the spread of your fee both ways. Say the exchange rate is 1.3. and the fee is 2.5%, then your rate is 1.3+/-2.5%. So when you buy, the rate is 1.325. When you get a refund, the rate is 1.275.

In your case, the fee seems to be 3.5%. That's pretty high.
Last edited by niche54 on Feb 23rd, 2021 2:11 pm, edited 1 time in total.
Sr. Member
Mar 14, 2014
710 posts
841 upvotes
criscross wrote: I have a tricky question which I was looking for some advice for. Here is the scoop:

I am using my TD Aeroplan card to buy items at this online auction place (Nba Topshots). The way it works is that I put in a bid for a player, they charge my credit card in USD and then if my bid was unsuccessful, they refund my credit card for the exact same amount in USD within seconds. What I am finding out now is that for a lot of my unsuccessful bids, I am paying significant fees to TD because they claim that the exchange rate is fluctuating by a rather significant? amount. Now I understand rates change but the fluctuations seem staggeringly large on my statements. Here is an example bid which failed: I was charged $358.20 USD which was converted at 1.30226 for $466.47 CAD and then refunded seconds later for $358.20 USD which was converted at 1.22909 and a refund in $440.26 CAD. So I lost out on $16 on exchange rate fluctuations according to TD but I smell some bs on that claim. Is it possible for the exchange rate to go from 1.30226 to 1.22909 within seconds? I thought the exchange rate rarely moves like a .01 point a day, what the deal here?

I have a few of these charges, not sure if its worth it to get on more long calls with a CSR over it. Was hoping someone here has some insight into this.
I just did some rough calculations and it appears you were charged a 2.5% non-refundable FTF on the payment you made. As well, Visa adds on a small margin on the exchange rate of approximately 0.5% on each transaction. My calculations are non scientific, however I came up with about a $16.20 loss using your example. Two things, you can use the Visa Exchange Calculator to get a better idea of the conversion rates and it would be worth your while to get a no-FTF credit card if you're going to continue doing numerous foreign transactions. A couple of good cards to consider are the no-fee Brim Financial MasterCard and Home Trust Preferred Visa. A couple of other good annual fee cards with no FTF are Scotia Gold American Express, Scotiabank Passport Visa Infinite and HSBC World Elite MasterCard.

https://www.visa.co.jp/content/VISA/usa ... lator.html

https://www.mastercard.us/en-us/persona ... rency.html

list-credit-cards-foreign-currency-tran ... s-2122295/

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