Bank Charges Currency News
Bank indemnity for foreign checks
Today I was forwarded a bank indemnity document that a bank wanted our small business to sign so that we could deposit foriegn checks into our business bank account.
The level of indemnity was incredible, there was no limitation on the amount and the recoverable payments were based on whatever the bank deemed that it wanted to pay.
The terminology used was “or may in its discretion pay in respect of such claim(s)” which would open a small business up to any liability that the bank feel appropriate with no limitations.
That would be an unacceptable risk without…
Credit card charges on foreign currency
When you’re paying for goods in another currency, whether you’re actually in another country or just paying in a different currency online, if you use your credit card then the credit card company and possibly your bank as well are going to charge you for exchanging the money over to your own currency.
The key here is understanding where each of the credit card charges on foreign currency transactions actually happen with the particular card and bank that you use.
In some cases the credit company will charge a percentage of the transaction for the change in currency and in others the bank itself will charge this percentage. In a few circumstances both the card company and the bank will charge you and it may not be immediately obvious where you have been charged, at what rate and what was actually just a fluctuation in the foreign currency exchange rate.
The best thing you can do…
Bank Charges for Foreign Deposits
The local bank our small business works with has just changed its charging structure on bank charges for foreign deposits and they’ve managed to reduce their own paperwork at the same time as increasing our bank charges. Unbelievable!
Previously we had to go through a big drama whenever we wanted to deposit money into our account from an overseas check that was in a foreign currency. We had to fill out a deposit slip for each and every check that was presented and every single deposit slip that was in foreign currency had to be signed by the Director of the company. Crazy.
Now they’ve changed the rules again…