The AUS dollar exchange rates you hear quoted in news reports refer to the rates between countries or the market rate.
It's understandable customers sometimes think this is the rate they will receive when they change their currency at a foreign currency exchange provider like Crown. But, there are a few steps before the money gets into their pocket. Here is a short explanation.
Wholesalers
Firstly Wholesalers buy in large amounts of currency. They pay a little more than the market rate. For example, if the market rate for the USD against the AUD is .88, the Wholesaler might only receive .8695 cents for one AUD.
Retailers
Next in the chain is the retailer, like Crown Currency Exchange. We purchase our stocks from the Wholesaler and may only receive USD.8550 for one AUD.
Customers
Next comes the Customer, who may receive .8425 cents for their one AUD. The margin between what Crown Currency Exchange buys in from the Wholesaler and what we sell to the Customer is how we make a profit.
Crown Currency chooses not to add a fee or commission, though this is common practice for many exchange providers. We find that no fees or commission keeps our exchanges competitive and removes confusion, especially if you're exchanging a lot of money or buying several currencies - additional fees become complicated and an unnecessary burden.
Retailers are required to disclose that they are charging a commission or fee. But it's often in the small print! When at the window, always ask if there is a fee or commission. If there is, look for another exchange shop. However, make sure the rates remain competitive.
Remember, when buying foreign currency, the higher the rate, the better. It means that you are receiving more of the foreign currency per dollar than you would if the quoted rate is lower.
When selling foreign currency, you want the rate as low as possible. At Crown Currency Exchange we are always happy to buy back what you don't spend, although usually not coinage.
THE GOLDEN RULE:
Don't pay fees or commission on foreign dollar exchange transactions. Check the small print!
