# Capital One Credit Card Exchange Rate



## DonAndAbby (Jan 7, 2013)

Has anyone noted that Capital One Credit Cards has changed their exchange rate policy?

Previously when using the card here in Phils I would always get a great exchange rate, about what the market exchange rate on XE was. So I thought I would use the card for some purchases while the peso was down.

Yesterday on XE the rate was around 44.60 and today it is 44.63. For my purchase yesterday, Capital One applied 44.20. It appears they took a cut, whereas they never did before.

I hope this is a fluke. If they are taking a cut now, it really puts a damper on using the card. I would have been better off exchanging at BPI for a rate of around 44.40.


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## Asian Spirit (Mar 1, 2010)

Looks like what Western Union and others do when exchanging currency. They end up getting a slight cut of each transaction. If that's not the case, then one of their employees is. I would visit directly with the bank manager.


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## overmyer (Aug 15, 2013)

Gene and Viol said:


> Looks like what Western Union and others do when exchanging currency. They end up getting a slight cut of each transaction. If that's not the case, then one of their employees is. I would visit directly with the bank manager.


Wwstern Union takes the xchange rate bite, the agent gets the fee. Even the banks take a cut as well as the CC companies. The Forex rate posted is the official rate between central banks.


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## overmyer (Aug 15, 2013)

overmyer said:


> Wwstern Union takes the xchange rate bite, the agent gets the fee. Even the banks take a cut as well as the CC companies. The Forex rate posted is the official rate between central banks.


Just FYI, right now the official rate Central Bank) is 44.67 but BPI is only ofging its customers 44.18.


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## Asian Spirit (Mar 1, 2010)

overmyer said:


> Just FYI, right now the official rate Central Bank) is 44.67 but BPI is only ofging its customers 44.18.


Hold onto your dollars boys. If the US and others bite Syria in the next week or so it'll go up over 50 I would think. That's when I will head to the bank..


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## overmyer (Aug 15, 2013)

Gene and Viol said:


> Hold onto your dollars boys. If the US and others bite Syria in the next week or so it'll go up over 50 I would think. That's when I will head to the bank..


A little off topic but Foreign Policy Magazine is reporting that the Reason US, Britain & France are so positive that Assad's regime used Sarin is that NSA has actual phone intercepts between Syria's Ministry of Defence and a Chemical Warfare Unit ordering the attack!


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## Asian Spirit (Mar 1, 2010)

overmyer said:


> A little off topic but Foreign Policy Magazine is reporting that the Reason US, Britain & France are so positive that Assad's regime used Sarin is that NSA has actual phone intercepts between Syria's Ministry of Defence and a Chemical Warfare Unit ordering the attack!


Nothing would surprise me with that. And the fact that it is in that region, everyone will worry about the continued safety of oil shipments. Then the exchange rate will take a wild ride here and most everywhere else I assume. 53% or higher would not surprise me for here in the Philippines.


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## DonAndAbby (Jan 7, 2013)

I made a mistake. I should have remembered that Mastercard sets the rate, not Capital One. I don't think Capital One charges anything.

I think this was a timing fluke. Mastercard had 44.18 on the 26th and it jumped to 44.57 on the 27th. I missed the jump!


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## DonAndAbby (Jan 7, 2013)

overmyer said:


> Just FYI, right now the official rate Central Bank) is 44.67 but BPI is only ofging its customers 44.18.


I think you may not be getting the accurate BPI rate. If you don't login, you will only see a generic rate that is not updated often. Right now BPI online is 44.44 for <=1000 and 44.5 for <=50000.

If I talk to the BPI manager, he can usually get me a little bit more than the online rate.


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## overmyer (Aug 15, 2013)

DonAndAbby said:


> I think you may not be getting the accurate BPI rate. If you don't login, you will only see a generic rate that is not updated often. Right now BPI online is 44.44 for <=1000 and 44.5 for <=50000.
> 
> If I talk to the BPI manager, he can usually get me a little bit more than the online rate.


You could be right that my forex program hadn't updated yet.


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## HVACman (Jul 27, 2011)

Gene and Viol said:


> Hold onto your dollars boys. If the US and others bite Syria in the next week or so it'll go up over 50 I would think. That's when I will head to the bank..


Sorry Gene, I'm not much of a political animal or an exchange rate anylist ... but why would the US striking Syria strengthen the dollar? I surely hope you're right as Susan and I are going to be paying off out Tagaytay mortage in the next week or so,


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## Asian Spirit (Mar 1, 2010)

HVACman said:


> Sorry Gene, I'm not much of a political animal or an exchange rate anylist ... but why would the US striking Syria strengthen the dollar? I surely hope you're right as Susan and I are going to be paying off out Tagaytay mortage in the next week or so,


I doubt the dollar would grow any stronger as such. But the peso will drop like a rock at any sign of a threat to the flow of oil and other goods. Other currencies will do likewise to a degree. But seems that events like this hit the Philippine peso pretty hard..

PS. I'm not into the political stuff either. I just keep an eye on the news and hope for the best.


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## overmyer (Aug 15, 2013)

Gene and Viol said:


> I doubt the dollar would grow any stronger as such. But the peso will drop like a rock at any sign of a threat to the flow of oil and other goods. Other currencies will do likewise to a degree. But seems that events like this hit the Philippine peso pretty hard..
> 
> PS. I'm not into the political stuff either. I just keep an eye on the news and hope for the best.


You hit that analysis squarely on the head! GMA News followed you! This is their analysis released just an hour ago: "The peso plummeted to its weakest close in nearly three years Wednesday as jitters over a possible US-led military strike against Syria enhanced the volatility of Asian currencies." They should hire you!


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## Asian Spirit (Mar 1, 2010)

overmyer said:


> You hit that analysis squarely on the head! GMA News followed you! This is their analysis released just an hour ago: "The peso plummeted to its weakest close in nearly three years Wednesday as jitters over a possible US-led military strike against Syria enhanced the volatility of Asian currencies." They should hire you!


Hmmm-There are times I kinda wish I was wrong. Was just kind of a guess really. And for the Philippines, I feel bad for them. Me go back to work? Never. I'm definitely enjoying being retired. Hahaha..
Really going to be interesting to see how this deal with Syria plays out for everyone.


Gene


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## DonAndAbby (Jan 7, 2013)

Gene and Viol said:


> I doubt the dollar would grow any stronger as such. But the peso will drop like a rock at any sign of a threat to the flow of oil and other goods. Other currencies will do likewise to a degree. But seems that events like this hit the Philippine peso pretty hard..
> 
> PS. I'm not into the political stuff either. I just keep an eye on the news and hope for the best.


Over the past few months the dollar index has been steadily going up against the basket of currencies tracked. A key reason quoted is that everyone thinks the Federal Reserve is going to taper it's asset buying, and the asset buying is basically "printing money", which weakens the dollar. 

However, the peso has been exceptionally weaker than the rest, probably due to the things mentioned.

There is another financial term used "flight to safety" which describes investors buying dollars and US bonds whenever there is a crisis. Even though the US and the dollar are not all they used to be, they are still the safe haven currency in a crisis.

I just did the math, and in dollar terms, my rent has dropped 8.7% since I moved in here in Subic on April 1, due to the exchange rate. Right now, the rate is 44.725! Come on 45!

Good for the expat but bad for many Filipinos. Many countries will weaken their currency to boost exports (lower export prices), but the Philippines does not export much. They import most everything and imports are more expensive when the peso is weak. However, the Philippines has many OFW working overseas, and when they send their money home, it buys more pesos. OFWs are kind of like expats in this regard.


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## overmyer (Aug 15, 2013)

DonAndAbby said:


> Over the past few months the dollar index has been steadily going up against the basket of currencies tracked. A key reason quoted is that everyone thinks the Federal Reserve is going to taper it's asset buying, and the asset buying is basically "printing money", which weakens the dollar.
> 
> However, the peso has been exceptionally weaker than the rest, probably due to the things mentioned.
> 
> ...


Indeed! A strong dollar and weak peso is a mixed bag for Filipinos since a big chunk of the economy relies on those dollar remitances but at the same time it means higher consumer prices.


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