Transferring Dollars to Pounds from prepaid card.

Aura101Aura101 Posts: 8,327
Forum Member
I have an online account with 'payoneer', https://www.payoneer.com/home/ , basically get paid to this account for doing online work.
It seems to be a good time to have dollars at the moment, problem is, i have no idea how to transfer them to pounds at the 'proper' exchange rate. I can go to a cashpoint with the supplied card, however it will not give me the real exchange rate, i was doing this last year till i discovered thats it taking a large amount more than it should be, an thats thanks to the banks here, i also cannot transfer it to my bank, because again it takes far more than it should. the only time i get close to the real exchange rate is when i make purchases,
any suggestions, or anyone experienced something similar?

Comments

  • Keefy-boyKeefy-boy Posts: 13,561
    Forum Member
    ✭✭
    I have a UK US dollar account with Citibank that allows transfers to and from a sterling account with them at very good rates and no charges.
  • TUTV ViewerTUTV Viewer Posts: 6,236
    Forum Member
    Aura101 wrote: »
    I have an online account with 'payoneer', https://www.payoneer.com/home/ , basically get paid to this account for doing online work.
    It seems to be a good time to have dollars at the moment, problem is, i have no idea how to transfer them to pounds at the 'proper' exchange rate. I can go to a cashpoint with the supplied card, however it will not give me the real exchange rate, i was doing this last year till i discovered thats it taking a large amount more than it should be, an thats thanks to the banks here, i also cannot transfer it to my bank, because again it takes far more than it should. the only time i get close to the real exchange rate is when i make purchases,
    any suggestions, or anyone experienced something similar?

    It's Mastercard Debit Card so the exchange rates are determined by Mastercard rather than the ATM operator that you are using in the UK.

    Likewise any charges applied to your account, unless detailed at the ATM itself, will be determined by Payoneer

    So little point blaming UK banks for your choice in card partner.

    When you make an international payment, there's so many ways for it to be processed.

    If Payoneer send the payment in Sterling, then they will decide on the exchange rate.
    If Payoneer send the payment in USD, then a UK bank will apply the spot rate.

    If Payoneer send the payment in Sterling, but your bank is not a correspondent bank, then Payoneer's correspndent bank will receive the payment in Sterling then CHAPS it onwards to your bank for their standard fee.

    If Payoneer send the payment in USD, but your bank is not a correspondent bank, then Payoneer's correspondent bank will receive the payment in USD, take a fee for negotating the transaction into Sterling, then CHAPS it onwards to your bank for their standard fee.

    Along with many other variations.

    Essentially, the cheapest way to receive funds is to ensure that your bank is a correspondent of Payoneer...
  • Aura101Aura101 Posts: 8,327
    Forum Member
    It's Mastercard Debit Card so the exchange rates are determined by Mastercard rather than the ATM operator that you are using in the UK.

    Likewise any charges applied to your account, unless detailed at the ATM itself, will be determined by Payoneer

    So little point blaming UK banks for your choice in card partner.

    When you make an international payment, there's so many ways for it to be processed.

    If Payoneer send the payment in Sterling, then they will decide on the exchange rate.
    If Payoneer send the payment in USD, then a UK bank will apply the spot rate.

    If Payoneer send the payment in Sterling, but your bank is not a correspondent bank, then Payoneer's correspndent bank will receive the payment in Sterling then CHAPS it onwards to your bank for their standard fee.

    If Payoneer send the payment in USD, but your bank is not a correspondent bank, then Payoneer's correspondent bank will receive the payment in USD, take a fee for negotating the transaction into Sterling, then CHAPS it onwards to your bank for their standard fee.

    Along with many other variations.

    Essentially, the cheapest way to receive funds is to ensure that your bank is a correspondent of Payoneer...

    i see, so if i were to go to the USA i could just use an ATM there and withdraw the dollars as they should be ?
  • TUTV ViewerTUTV Viewer Posts: 6,236
    Forum Member
    Aura101 wrote: »
    i see, so if i were to go to the USA i could just use an ATM there and withdraw the dollars as they should be ?

    Yes and No...

    If you withdraw $100 at US ATM in the USA there will definitely be no exchange rate issues, however, you will have to check carefully for transaction charges. Payoneer are quite secretive about what their charges are but are upfront about being a "Fee based payment solution"...

    It looks like $1.35 per ATM withdrawal in the USA. They charge $0.90 if you try to make an ATM withdrawal and you don't have enough money in your account but I can't be sure.

    Drawing money out in the UK... Goodness. $2.15 + 3.0% of funds drawn!

    So to draw out £50 yesterday the rate would have been 1.3047. That's $65.23 + $2.15 Payoneer ATM and $1.96 Payoneer transaction charge or $69.34 altogether.

    The best thing to do is spend your money in $ in the USA or online in $.
  • Aura101Aura101 Posts: 8,327
    Forum Member
    Yes and No...

    If you withdraw $100 at US ATM in the USA there will definitely be no exchange rate issues, however, you will have to check carefully for transaction charges. Payoneer are quite secretive about what their charges are but are upfront about being a "Fee based payment solution"...

    It looks like $1.35 per ATM withdrawal in the USA. They charge $0.90 if you try to make an ATM withdrawal and you don't have enough money in your account but I can't be sure.

    Drawing money out in the UK... Goodness. $2.15 + 3.0% of funds drawn!

    So to draw out £50 yesterday the rate would have been 1.3047. That's $65.23 + $2.15 Payoneer ATM and $1.96 Payoneer transaction charge or $69.34 altogether.

    The best thing to do is spend your money in $ in the USA or online in $.

    Hello, i have returned to the thread due to brexit :D
    Actually i am finding that spending on the card even in pounds gives an 'almost' true exchange rate. For example i spent £40 this morning on the card online, which is about $49 at the moment, and it came out of my payoneer account as $51. Which is fine.

    Though now we have brexited the exchange is very good if you already have dollars, $1000 dollars today is £830, i have never seen it like this.
    I just cant seem to find anyway of getting the benefits without spending money on the card.

    Anyone any clue on how long the exchange will remain similar to this, as it has been since the EU referendum.
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