How Nationwide Calculate Their Exchange Rate

eeja

"The clearing data that we receive from Visa International comprises of a currency amount and a sterling amount which is divided to give us the exchange rate that we apply to your account. This is the reason why the exchange rate on your account differs to what either you or I can see.

The data that we receive from Visa is in a whole figure as the exchange rate applied is not in essence a real number so it is rounded up or down depending on the exchange rate at the time. This total figure is paid by Nationwide. We divide the rate that we have to send to Visa in sterling by the Thai Baht rate that has been presented to us. This gives us as near a figure to the exchange rate applied when the transaction is processed. This figure is arrived at by processing all transactions in a given currency and then dividing that amount.

This will impact on the exchange rate Applied as we are often giving more money to Visa International than the exchange rate that they set and because of this, it will impact on the exchange rate displayed on your statement as we have to adjust it accordingly.

It is not that we are charging more it is more to do with the fact that Visa are claiming more money from us the reverse happens when the exchange rate is rounded down.



I'm sorry but I cannot give you any fuller explanation than this, this information has come from the person that is responsible for the external date feed that we receive from Visa International.

In answer to your other questions

You're Visa debit card is a guaranteed method of payment so as soon as authorisation is granted the funds are immediately reserved against your account by Visa International. It applies to All Visa transactions and not just ATM withdrawals

As for the rate of exchange applied, it is my understanding that it is the Visa exchange rate on the given day and then this amount is altered when the withdrawal is processed. Unfortunately, because it is only a shadow balance I cannot give you a more complete answer. If you conducted a transaction on the 5 June the reserved rate would've been £6.98 although this wouldn't have been the amount that debited your account.

I hope that I've now answered you're questions satisfactorily.

ABOVE QUOTED FROM NATIONWIDE
CAN ANYONE PLEASE EXPLAIN ?
THANK YOU

CIS

It's obviously the Winner of the Plain English campaign 2006

Finishrich

What exactly was your question to them?

trisontana

CIS wrote:

It's obviously the Winner of the Plain English campaign 2006

Seriously, I should nominate this for the Plain English Campaign's "Golden Bull" award for gobbledygook.

eeja

I have been trying for some weeks now to found out how Nationwide calculate the exchange rate they apply when one makes a ATM withdrawal overseas. The Visa website quotes a rate they claim is used but that is UNTRUE.
Numerous test withdrawals prove this and Nationwide even confirm this. The Visa website is :
http://www.corporate.visa.com/pd/consumer_ex_results.jsp?from=GBP&to=THB&rate=0.0
I have now given up trying to find the answer as the gobbledeegook used is almost impossible to understand.
In my last question to them I asked why the Visa rate says I should get x pounds debited and I get y pounds
debited. ..you see their reply!!!!!!!
This must be a question to the Consumers Organisation ..you know...the ones than run WHICH magazine as it is almost impossible to get a straight answer from Nationwide.

khizman

question is, will nationwide rates be better or the rates that I will get from a local exchange office at the destination be better?

hammy_the_hammer

eeja wrote:

I have been trying for some weeks now to found out how Nationwide calculate the exchange rate they apply when one makes a ATM withdrawal overseas. The Visa website quotes a rate they claim is used but that is UNTRUE.
Numerous test withdrawals prove this and Nationwide even confirm this. The Visa website is :
http://www.corporate.visa.com/pd/consumer_ex_results.jsp?from=GBP&to=THB&rate=0.0
I have now given up trying to find the answer as the gobbledeegook used is almost impossible to understand.
In my last question to them I asked why the Visa rate says I should get x pounds debited and I get y pounds
debited. ..you see their reply!!!!!!!
This must be a question to the Consumers Organisation ..you know...the ones than run WHICH magazine as it is almost impossible to get a straight answer from Nationwide.

i remember a somerfields customer a few years back who really didn't like the way somerfields did things and so they basically told him to go elsewhere and find a supermarket that would satisfy him.
now i think nationwide with their overseas currency perks know they can't be beaten for those transactions .....if they can be beaten well go forth and use the competition .... a reply you may eventually receive.
quite what nationwide are doing that other banks don't do perplexes me. i go abroad and receive a rate better than any other i have encountered for modest transactions i make using nationwide credit and cash cards.

pin

I hate to say it, but if you actually take five minutes to slow down and read what is said, I actually understand what is being said. But then again I'm a lawyer.

Also, why the agro? We all know Nationwide are head and shoulders above their competition re foreign usage. You ARE getting the best deal from them. Why cause agro.

Also why do you say that what Visa say is untrue?

The international money markets are a complicated business, I don't think there is any way of explaining it without using technical terminology, and we all know that currency rates can change every second.

Just be happy that you are getting the BEST rate when using Nationwide.

eagleeye

exchange rate is updated every hour by the card company.It is impossible for them to give you the exact rate unless you carry out the transaction.In my own experience nationwide rate on INR(15paise lower/INR ) was almost similar to XE.com/Reserve bank of India rate.All of Nationwide customers are privileged that nationwide gives the business rate to the non commercial customers.For other currencies please look into this thread

http://forums.moneysavingexpert.com/showthread.html?t=132741&highlight=nationwide+forex+rate

eeja

Sorry folks...you have got the point of this thread wrong for two reasons. Firstly many of you say if the rate compares well with other rates no need look any further. Dont look a gifthorse in the mouth ! With respect that is not the point. It is not unreasonable for someone whose card is debited to want to know how the amount of the debit was arrived at . It is irrelevant whether the rate given is better or worse than other Co's . We have a right to the facts ie how we are debited/charged
This is known in consumer protection as 'transparency.'
Secondly and most importantly is honesty.
Please test yourselves...no need to post rates for other people which I noticed on the earlier thread.
Just go to the above Visa website and you get the rate which Visa says WILL apply to your transaction . Make a note of it. [No ifs or buts in cases like Nationwide which claims to pass on the full rate without charges.]
Now go to a ATM (overseas) and make a withdrawal. A test withdrawal of a fiver is sufficient.
Now wait until the rate actually applied appears on your statement sometimes only hours later,
NINE TIMES OUT OF TEN IT IS NOT THE PROMISED/ADVERTISED EXCHANGE RATE !
So who is lying..Visa or Nationwide ? Some one is,
but to how to find out with all that gobbledigook from N/w and... Visa is not prepared to talk, enter into correwspondence or even give their email address.
As mentioned probably only an organisation such as the Consumers Association would have the skills, knowledge influence and patience to get at the truth .
The bottom line ha ha...Once you know how the system works you can benefit financially, or prevent a loss. .
Think about how as I am not saying ...other than that the rates are fixed once and sometimes only twice a day !!!

eeja

Sorry folks...you have got the point of this thread wrong for two reasons. Firstly many of you say if the rate compares well with other rates no need look any further. Dont look a gifthorse in the mouth ! With respect that is not the point. It is not unreasonable for someone whose card is debited to want to know how the amount of the debit was arrived at . It is irrelevant whether the rate given is better or worse than other Co's . We have a right to the facts ie how we are debited/charged
This is known in consumer protection as 'transparency.'
Secondly and most importantly is honesty.
Please test yourselves...no need to post rates for other people which I noticed on the earlier thread.
Just go to the above Visa website and you get the rate which Visa says WILL apply to your transaction . Make a note of it. [No ifs or buts in cases like Nationwide which claims to pass on the full rate without charges.]
Now go to a ATM (overseas) and make a withdrawal. A test withdrawal of a fiver is sufficient.
Now wait until the rate actually applied appears on your statement sometimes only hours later,
NINE TIMES OUT OF TEN IT IS NOT THE PROMISED/ADVERTISED EXCHANGE RATE !
So who is lying..Visa or Nationwide ? Some one is,
but to how to find out with all that gobbledigook from N/w and... Visa is not prepared to talk, enter into correwspondence or even give their email address.
As mentioned probably only an organisation such as the Consumers Association would have the skills, knowledge influence and patience to get at the truth .
The bottom line ha ha...Once you know how the system works you can benefit financially, or prevent a loss. .
Think about how as I am not saying ...other than that the rates are fixed once and sometimes only twice a day !!!