halifax foreign transfer exchange rates

rt2011

I'm not sure this is the right place to post this.
I was sent money from abroad but the amount I received was quite low.
The sender's bank is saying the rate was fixed by the halifax, and the rate is really low compared with the day's exchange rate.
Does anyone know where I can get halifax foreign exchange rates for the past few days? I couldn't find it on their website!

rt2011

I guess my question is, if the foreign exchange rate used is much lower than it should be, will I be able to get back any money?
I feel like I've been robbed!!

YorkshireBoy

They use the 'Visa Reference Exchange Rate'. Google may help.

You say it was "quite low". If it was a small value payment, the £2 to £7 fee charged by Halifax may have impacted significantly on the amount received.

magpiecottage

Too late now but for small amounts Paypal is probably better.

rt2011

Thanks. I checked out the Visa Reference Exchange Rate and on the day of the transaction it was at 1.16. They exchanged it at 1.19.
The difference in rate means I received £2000 less than what I expected. Can I do anything about this? SUrely they can't just fix their own rates?
I tried calling the halifax today but was transferred from departments to departments and no one was able to answer my questions!

noh

SUrely they can't just fix their own rates?

They can and they do.

I don't believe it is the Visa exchange rate that Halifax use for incoming foreign currency payments to personal bank accounts.

See page 22 of
http://www.halifax.co.uk/bankaccounts/pdf/reward-current-account-guide.pdf

"(c) We will use our Retail Reference Exchange Rate for buying
the relevant currency that applies on the day we receive the
payment. You can find out our Retail Reference Exchange
Rate by calling us on the number given in our contact details
at the front of this booklet."

The rate of exchange is set by them each day and is likely to be worse than the Visa rate which is usually not far off wholesale rates.
It looks like they have set their exchange rate so that they earn about 2.5% on transactions.

ERICS_MUM

rt2011 wrote: »

Thanks. I checked out the Visa Reference Exchange Rate and on the day of the transaction it was at 1.16. They exchanged it at 1.19.
The difference in rate means I received £2000 less than what I expected. Can I do anything about this? SUrely they can't just fix their own rates?
I tried calling the halifax today but was transferred from departments to departments and no one was able to answer my questions!

Wow, the amount you were sent must have been a stonker ? Did you check the rate with Halifax before the money was sent - if it was a large amount they should have given you a better rate closer to the market rate. It seems "wrong" that a retail exchange rate could be used for such a large payment.

Does that £2000 include fees - Halifax's and maybe the sending bank's or intermediary bank's (if there was one)or is it solely down to the exchange rate ? Are you sure that the right amount was sent (sorry, I'm just a bit shocked by the difference of £2000, are you certain about this ? ).

rt2011

Yes it's a large amount. The money was sent to me by a relative and I did not have much say on how it was done. It looks like they were misinformed by their own bank.

Halifax received the money in euro and changed the money, on top of the money they earned from their rate, they charged a £7.00 fee. It's day light robbery!!!!
Halifax sent me a chap receipt, so I have no doubt about how much was sent and the rate and fees. Exchanging the money with the visa exchange rate would have really given me £2000!
I'm going to write to complain to them today..

rt2011

40mins on the phone to the halifax and no real way to find out how they calculate their rate and from which amount a preferential rate should be applied.

rt2011

By the way, if anyone has some advise with regards to the way I should formulate my complaint it would be most welcome!

ERICS_MUM

rt2011 wrote: »

Yes it's a large amount. The money was sent to me by a relative and I did not have much say on how it was done. It looks like they were misinformed by their own bank.

Halifax received the money in euro and changed the money, on top of the money they earned from their rate, they charged a £7.00 fee. It's day light robbery!!!!
Halifax sent me a chap receipt, so I have no doubt about how much was sent and the rate and fees. Exchanging the money with the visa exchange rate would have really given me £2000!
I'm going to write to complain to them today..

I'm still shocked that Halifax would use such a poor rate for such a large amount.

I used to work in the international payments dept of a large bank and any currency payments received over a certain amount were referred to the customer so they could secure a better exchange rate through the bank - we never ever used the bog standard retail rate for amounts over £10,000 equiv (that was 10 years ago, the cut-off level is bound to be higher now but still there - I'll see if I can find out).

Good luck with your complaint. I usually spring to the defence of banks but I think Halifax have behaved outrageously here. Let us know how you get on.

Linda xx

PS it would be useful for your complaint if you could find out if other banks have an upper limit for using the retail rate ?