Credit card refund foreign currency

patch9495

Hello

I am currently awaiting a refund for our holiday which we paid using Halifax clarity credit card (0 foreign exchange fee). Original Payment was made in dollars and the conversion done by the card. Once the refund has been processed (refund will be processed by holiday company in dollars) will we receive the full amount we paid in Sterling or whatever the current exchange rate is of the dollar amount is, in Sterling?

Hope this makes sense

1882

You'll receive the dollar amount exchanged at the rate when the refund is processed and therefore this could be less that the sterling amount you paid. It could also be a higher sterling amount than you paid!

Nebulous2

I’ve just had a refund for flights booked 4 months ago in New Zealand Dollars. I’ve lost about £10 on a £400 refund. I’m glad to get most of my money back. 

That’s the chance you take on buying / selling in a foreign currency, you’re taking an exchange rate risk. The pound has been quite weak against the US dollar since the Brexit vote, but has picked up a bit more recently, so I would expect you to come out okay. 

jonesMUFCforever

The pound has tanked against the dollar since the Coronavirus so your losses might be smaller than expected.

ic

I just lost £7 on a £240 refund.  Annoyingly the refund took two weeks to appear on my card, but was back dated to the day hotel processed it at the start of the two weeks.   Had it used the later rate, I would made money.  However I'm just happy to have (most of) my money back.

sausage_time

jonesMUFCforever said:

The pound has tanked against the dollar since the Coronavirus so your losses might be smaller than expected.

If the pound falls, surely that means more pounds refunded for a given dollar amount?

jonesMUFCforever

sausage_time said:

jonesMUFCforever said:

The pound has tanked against the dollar since the Coronavirus so your losses might be smaller than expected.

If the pound falls, surely that means more pounds refunded for a given dollar amount?

It has not fallen enough though pre Christmas say you could get 1.30 when buying dollars but 1.5 dollars when selling now you might get 1.17 buying and 1.37 selling back. The difference is the spread between buying and selling.
So to make a profit the £ needs to fall further.

zagfles

jonesMUFCforever said:

sausage_time said:

jonesMUFCforever said:

The pound has tanked against the dollar since the Coronavirus so your losses might be smaller than expected.

If the pound falls, surely that means more pounds refunded for a given dollar amount?

It has not fallen enough though pre Christmas say you could get 1.30 when buying dollars but 1.5 dollars when selling now you might get 1.17 buying and 1.37 selling back. The difference is the spread between buying and selling.
So to make a profit the £ needs to fall further.

OP is using the Clarity, there's only the tiny MasterCard spread of maybe 0.2%, not the rip-off BDC spread of around 10%, that only applies to mugs who change cash! Should easily make a profit!

wiseonesomeofthetime

I have just been refunded for my accommodation in Denmark, and received an extra £1.18 in GBP.

Now, where to invest this

Whitebeard

wiseonesomeofthetime said:

I have just been refunded for my accommodation in Denmark, and received an extra £1.18 in GBP.

Now, where to invest this

Invest it in yourself! Buy some bananas