What am I missing? I see exchange rates today at 1.439 US Dollars to 1 Euro. However, in trying to arrange tour, the operator is asking for a 50% deposit, which is fine, but he is quoting a Bank of America rate of 1.5102. Indeed that is what the BofA website says, while all other references quote the 1.439 rate. Is this a typical bank up-charge?
Posted by
Dallas, TX, USA
1170 posts
There is the wholesale rate which banks charge one another ($1.439/Euro), and the retail rate that you and I are charged when we change our money or wire money. The retail rate will depend on the bank. Some will price gouge, while others will be more modest in their markup. I have found that a good exchange rate will be from 5 to 8 cents over the wholesale rate. So, the $1.5102 rate is still not that bad. Be aware that if you do a money transfer, you will be charged a fee only to get the money as far as the foreign branch of your bank (usually London), then the recipient will be charged a fee (deducted from the amount due) by their bank to transfer the money the rest of the way to the recipient's account. This has been my experience with money transfers to Italy.
Posted by
Tresana, Highlands Ranch, CO, USA
23268 posts
That is about a 5% up charge which is fairly typical in the US and somewhat on the low side. I don't think it is gouging. See if they will accept a credit card for payment. Even if your credit card tacks on the usual 3% it still is a better rate than BA. Debit and credit card transactions are always within 1% of the interbank rate which is the best you can do.