Ruck Posted January 22, 2016 Share Posted January 22, 2016 Hi there guys, Ive just transferred payment for a bass. The exact amount agreed in English pounds. But the seller is not happy with my bank's conversion rates and is using xe.com to show me I owe him more money. What should I do? Thanks Quote Link to comment Share on other sites More sharing options...
leftybassman392 Posted January 22, 2016 Share Posted January 22, 2016 (edited) Until somebody who knows more turns up, I'll say this - the exchange rates you see on sites like XE.com are not the rates you see in the real world. Most financial institutions that exchange currencies offer different rates according to which way the exchange is going - ever noticed those 'we buy at... we sell at...' boards you invariably see in such places? Some charge fees as well for doing the exchange. If you paid by one of the standard methods for such transactions then this is almost certainly what's happened. It doesn't matter that you're not actually buying or selling currency as such; at some point the one currency has to be exchanged for the other, and this is where the bank will take it's cut. It sounds to me like the seller is either trying it on or else doesn't know how currency exchange works. If the sale price is in pounds and payment is made in pounds then the rest is outside your control, and IMHO not your problem. Edited January 22, 2016 by leftybassman392 Quote Link to comment Share on other sites More sharing options...
CamdenRob Posted January 22, 2016 Share Posted January 22, 2016 [quote name='leftybassman392' timestamp='1453475194' post='2959827'] If the sale price is in pounds and payment is made in pounds then the rest is outside your control, and IMHO not your problem. [/quote] This Quote Link to comment Share on other sites More sharing options...
Dad3353 Posted January 22, 2016 Share Posted January 22, 2016 [quote name='leftybassman392' timestamp='1453475194' post='2959827']... If the sale price is in pounds and payment is made in pounds then the rest is outside your control, and IMHO not your problem. [/quote] This ^^, unless the ad states a price in another currency. Quote Link to comment Share on other sites More sharing options...
funky8884 Posted January 22, 2016 Share Posted January 22, 2016 Every current exchange will cost someone, be it in commission or a reduced exchange rate compared to XE, I was in the post office yesterday and did a quick calculation and you loose approx 5% when buying another currency, How was the transaction made ? Quote Link to comment Share on other sites More sharing options...
Ruck Posted January 22, 2016 Author Share Posted January 22, 2016 Bank Transfer Quote Link to comment Share on other sites More sharing options...
Ruck Posted January 22, 2016 Author Share Posted January 22, 2016 (edited) HSBC's rates last night were roughly 1.27 £ to Euro. Xe.com;s rate was 1.31. A fair difference to annoyed about if I was the seller I agree there Edited January 22, 2016 by Ruck Quote Link to comment Share on other sites More sharing options...
leftybassman392 Posted January 22, 2016 Share Posted January 22, 2016 [quote name='Ruck' timestamp='1453476272' post='2959841'] Bank Transfer [/quote] To be clear, did the ad explicitly indicate a price in pounds sterling? Quote Link to comment Share on other sites More sharing options...
Skybone Posted January 22, 2016 Share Posted January 22, 2016 Also, a lot depends on which service you use to transfer the funds. If you use a bank transfer, they all have their own rates, and PayPal has another lower rate. At the end of the day, money transfer services are in the business of making money. Quote Link to comment Share on other sites More sharing options...
Ruck Posted January 22, 2016 Author Share Posted January 22, 2016 [quote name='leftybassman392' timestamp='1453476431' post='2959844'] To be clear, did the ad explicitly indicate a price in pounds sterling? [/quote] Yes. Quote Link to comment Share on other sites More sharing options...
linear Posted January 22, 2016 Share Posted January 22, 2016 The problem here is the agreed amount was in pounds, but you've paid him with whatever his local currency is, and you guys didn't agree on a conversion rate for that. Quote Link to comment Share on other sites More sharing options...
Ruck Posted January 22, 2016 Author Share Posted January 22, 2016 [quote name='linear' timestamp='1453476673' post='2959849'] The problem here is the agreed amount was in pounds, but you've paid him with whatever his local currency is, and you guys didn't agree on a conversion rate for that. [/quote] yep Quote Link to comment Share on other sites More sharing options...
Grangur Posted January 22, 2016 Share Posted January 22, 2016 (edited) I tend to agree with the other above, but you need to move forward and settle this. You could argue and get the seller to tell you where you can transfer cash from the UK that will get him the Xe.com rate, but you have done the deal, so there's not much to be gained. Why not work out the value if the transfer had achieved 1.295 (a compromise exchange rate) then send him the difference? [b]Edit: [/b]as long as the seller will accept what he gets with no arguments. Edited January 22, 2016 by Grangur Quote Link to comment Share on other sites More sharing options...
leftybassman392 Posted January 22, 2016 Share Posted January 22, 2016 (edited) [quote name='Ruck' timestamp='1453476483' post='2959847'] Yes. [/quote] In which case my original comment applies. If the seller doesn't understand how banks do currency exchanges then I really don't see how that's your problem. He needs to take it on the chin and clearly state a sale price in his preferred currency in future. Sounds harsh but you've done nothing wrong and have no reason to be concerned. If he quibbles, point out that you fulfilled the purchase to the letter and in good faith. If he'd asked for payment in, say, Euros then the bank would have done the maths for you and told you how much to pay in pounds so that he gets his asking prices in Euros. That's how I always did it with international trading, and I never had any problems. Edited January 22, 2016 by leftybassman392 Quote Link to comment Share on other sites More sharing options...
Grangur Posted January 22, 2016 Share Posted January 22, 2016 [quote name='leftybassman392' timestamp='1453476767' post='2959854'] In which case my original comment applies. If the seller doesn't understand how banks do currency exchanges then I really don't see how that's your problem. The seller needs to take it on the chin and clearly state a sale price in his preferred currency in future. Sounds harsh but you've done nothing wrong and have no reason to be concerned. If he quibbles, point out that you fulfilled the purchase to the letter and in good faith. [/quote] You're right, of course. The pain here is that a refund will lose even more cash. I guess the OP could offer that solution and stipulate that he will want a FULL refund. Leaving the seller the problem that he'll lose even more in that process. [b]Note to the seller: [/b]Sorry for your loss mate, but at least you have a sale in this very quiet time. Quote Link to comment Share on other sites More sharing options...
linear Posted January 22, 2016 Share Posted January 22, 2016 It is the OP's problem because the agreed amount was in Pounds but he has paid in Euros without agreeing on an exchange rate beforehand. It's also the sellers problem because they agreed a price in pounds, but he agreed to be be paid in Euros, again without explicitly agreeing on an exchange rate. Both parties are at fault here, because a contract has been made without a meeting of minds on the exact terms of the agreement. Compromising and splitting the difference somehow seem like the most sensible way to go. Quote Link to comment Share on other sites More sharing options...
Twigman Posted January 22, 2016 Share Posted January 22, 2016 (edited) [quote name='linear' timestamp='1453477375' post='2959873'] It is the OP's problem because the agreed amount was in Pounds but he has paid in Euros without agreeing on an exchange rate beforehand. Compromising and splitting the difference somehow seem like the most sensible way to go. [/quote] I suspect the OP has paid the agreed amount in GBP but that the seller only has a bank account in his local currency. For the receiving bank to credit the seller with the cash they have to convert it. The seller should have stipulated an account that holds GBP if he wished to receive full value. I believe the OP has fulfilled his obligation in full but the seller has been naive in believing his bank will give him full value on conversion. Edited January 22, 2016 by Twigman Quote Link to comment Share on other sites More sharing options...
leftybassman392 Posted January 22, 2016 Share Posted January 22, 2016 (edited) @linear At the risk of quibbling, my understanding is that standard procedure is to ask for payment in your preferred currency when trading internationally - why would you do it any other way? Additionally, doing it that way eliminates precisely this kind of issue because the bank will do it all for you. Negotiating exchange rates? Really? I still don't see how any of this can be laid at the OP's door. Edited January 22, 2016 by leftybassman392 Quote Link to comment Share on other sites More sharing options...
Dad3353 Posted January 22, 2016 Share Posted January 22, 2016 (edited) If the seller agreed that you should transfer (say...) £500, and that's what's been transferred, then It's not your problem if he receives less than expected. If he'd wanted 650€, he should have asked for that to be transferred, and you'd have paid the fees etc. There's no case to answer; it's a good question, and a lesson to be learned by both buyers and sellers in the international trade. I've had several affairs in GBP-Euro, and that's how it works. Specify the currency, that's all. Edited January 22, 2016 by Dad3353 Quote Link to comment Share on other sites More sharing options...
Ruck Posted January 22, 2016 Author Share Posted January 22, 2016 [color=#282828][font=helvetica, arial, sans-serif]We've agreed to compromise and split the difference. Many thanks to everyone who commented here! Next time buying from overseas I will know better to confirm rates and the final sums of conversion. You guys have been great thanks![/font][/color] Quote Link to comment Share on other sites More sharing options...
linear Posted January 22, 2016 Share Posted January 22, 2016 (edited) Great news! To clarify what I was saying earlier. I wasn't really suggesting there should have been a literal negotiation of exchange rates It was just an analysis of what had taken place. If you agree a price in pounds, but the actual payment is made in Euros, the currency conversion charges must be covered by one or both parties. There needs to be an agreement on how the charges will be met. It was the agreement part that was missing. One party assumed one thing and the other party assumed another. A private sale is a type of contract. There are all sorts of 'standard' terms that are implied, unless both parties agree to the contrary. But, when it comes to the payment part, I think it makes sense to be as clear as possible, rather than relying upon assumptions of standard practice. Edited January 22, 2016 by linear Quote Link to comment Share on other sites More sharing options...
Lw. Posted January 22, 2016 Share Posted January 22, 2016 A surprisingly swift & easy resolution - well done to the two of you. These things always crop up when people aren't overly experienced in international trade - lessons have been learned* & you can both move along with your lives enjoying the transaction. *Lesson being always agree the fee in the currency of the acc you're paying in to & also agree who is going to take the bank charges hit (though generally you both do). Quote Link to comment Share on other sites More sharing options...
Graham Posted January 22, 2016 Share Posted January 22, 2016 Good news The important part is what lovely new bass do you have winging it's way to you? Quote Link to comment Share on other sites More sharing options...
ambient Posted January 22, 2016 Share Posted January 22, 2016 I know if you use Paypal, you can put in how much the recipient needs to receive. Quote Link to comment Share on other sites More sharing options...
Ruck Posted January 22, 2016 Author Share Posted January 22, 2016 (edited) [quote name='ambient' timestamp='1453481121' post='2959934'] I know if you use Paypal, you can put in how much the recipient needs to receive. [/quote] If they stated the amount in Euros before the transfer yes. I could have done the same with my online bank service. But I was hasty and just paid the agreed price which was in Pounds Sterling. There is probably a screaming, giant, bold font sticky post on the forum that lists and explains all this but somehow me and the seller both missed it. Edited January 22, 2016 by Ruck Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.