Neteller Withdrawl Options...

P-HoundP-Hound
in Online Poker
Just curious,

I have used neteller to send money out, but never to recieve money,
say, if the amount was only like $1,500, and you verfiy your bank account all that jazz, it should take 4-5 days for the funds to be in your account with their EFT or does the banks go all crazy and make u wait a month and all that shit? I use the Royal Bank Of Canada, just wondering what some pro's/cons and would be interested into hear some of your experinces when it comes to withdrawing your funds...

Comments

  • GogieGogie
    Since Neteller cannot link up to a Canadian bank's $US account, any transfers from Neteller to your account are automatically converted to Canadian dollars (and you are charged 1.9% by Neteller as a foreign exchange fee on top of the undoubtedly disadvantageous exchange rate they will use).  To get around this, I requested a cheque, which, since my Neteller account is in $US, will be issued in $US and incur no fees (except for a $2 cheque issing fee).  The cheque should arrive within 7-10 business days.  I maintain a $US account with a Canadian bank because I like to travel to the States (read Vegas) at least once or twice a year.  I can deposit my Neteller cheque directly into my $US bank account and lose nothing in the process.

    At the very least, if you request a cheque, and your Neteller account is in $US, you'll beat the 1.9% fee they charge to convert your money to $Cdn before depositng it into your bank account. You'll probably also get a more favourable exchange rate at your own bank when you take the cheque there for depositing.
  • ScottyZScottyZ
    Since Neteller cannot link up to a Canadian bank's $US account, any transfers from Neteller to your account are automatically converted to Canadian dollars (and you are charged 1.9% by Neteller as a foreign exchange fee on top of the undoubtedly disadvantageous exchange rate they will use).

    The last part is incorrect.

    Neteller does not charge an extra 1.9% on top of the usual buy/sell exchange rate spread for an EFT transaction. Neteller's usual exchange rate spread is comparable to most (and actually better than some) credit card companies and Canadian banks.
    say, if the amount was only like $1,500, and you verfiy your bank account all that jazz, it should take 4-5 days for the funds to be in your account with their EFT

    It may depend on the bank, but my guess would be that there is typically not an unsually long hold on Neteller EFT transactions. Again, it may depend on the bank, but 4 or 5 business days is probably typical for a Neteller -> Bank EFT transfer.

    ScottyZ
  • literationliteration
    ScottyZ wrote:
    Neteller's usual exchange rate spread is comparable to most (and actually better than some) credit card companies and Canadian banks.
    ScottyZ

    Agreed.
  • Soup66Soup66
    I actually perfer the neteller debit card. If you apply for it you should recieve it within a week (although it says a few weeks). Neteller charges $2 to transfer onto your debit card, and then the banks will charge $1.5 for out of branch transactions or whatever. I am fully willing to pay $3.5 to get the money in 10minutes!
  • CheeseCheese
    I cashed $2500 from Royal Vegas. it took 2 days to go to Neteller, then 2 days to go into my bank account. The only fee I recall was the 1.9% exchange.
  • GogieGogie
    ScottyZ wrote:
    Since Neteller cannot link up to a Canadian bank's $US account, any transfers from Neteller to your account are automatically converted to Canadian dollars (and you are charged 1.9% by Neteller as a foreign exchange fee on top of the undoubtedly disadvantageous exchange rate they will use).

    The last part is incorrect.

    Neteller does not charge an extra 1.9% on top of the usual buy/sell exchange rate spread for an EFT transaction. Neteller's usual exchange rate spread is comparable to most (and actually better than some) credit card companies and Canadian banks.

    I guess Neteller must be misinforming their customers if the above is incorrect.  This is a direct quote from Neteller's website: 

    "Note: If your withdrawal transaction involves a currency conversion, the exchange rate that NETELLER applies is an average daily inter-bank market rate published by a third party foreign currency data provider plus 1.9%. NETELLER retains this amount as a foreign exchange processing fee."

    Seems to me Neteller charges a 1.9% fee, otherwise why would they say they did if they didn't?  I don't disagree with the comment regarding credit cards - they do charge a fee similar to Neteller for processing foreign currency transactions.  However, the issue is what rate do you effectively get for converting your US dollars to Cdn dollars?  If you let Neteller do it, you pay 1.9% on top of the bank rate.  If you get a cheque from them and deal directly with your bank, you only pay the bank's rate.
  • ScottyZScottyZ
    Gogie wrote:
    ScottyZ wrote:
    Since Neteller cannot link up to a Canadian bank's $US account, any transfers from Neteller to your account are automatically converted to Canadian dollars (and you are charged 1.9% by Neteller as a foreign exchange fee on top of the undoubtedly disadvantageous exchange rate they will use).

    The last part is incorrect.

    Neteller does not charge an extra 1.9% on top of the usual buy/sell exchange rate spread for an EFT transaction. Neteller's usual exchange rate spread is comparable to most (and actually better than some) credit card companies and Canadian banks.

    I guess Neteller must be misinforming their customers if the above is incorrect. This is a direct quote from Neteller's website:

    "Note: If your withdrawal transaction involves a currency conversion, the exchange rate that NETELLER applies is an average daily inter-bank market rate published by a third party foreign currency data provider plus 1.9%. NETELLER retains this amount as a foreign exchange processing fee."

    Seems to me Neteller charges a 1.9% fee, otherwise why would they say they did if they didn't? I don't disagree with the comment regarding credit cards - they do charge a fee similar to Neteller for processing foreign currency transactions. However, the issue is what rate do you effectively get for converting your US dollars to Cdn dollars? If you let Neteller do it, you pay 1.9% on top of the bank rate. If you get a cheque from them and deal directly with your bank, you only pay the bank's rate.

    I will check the exact numbers this evening.

    However, the "daily inter-bank market rate" refers to the rate which banks charge each other for foreign exchange transactions. This is far different than the rates offered by banks to their retail customers (like you and me).

    Neteller is not misinforming their customers as long as these customers understand what an inter-bank exchange rate is. Neteller gives this information explicitly, whereas typical banks and credit card companies may not. Actually, I can see how easily people would incorrectly conclude that Neteller charges 1.9% in excess of typical banks/credit cards. Their explanation you have quoted from their website, while technically accurate, is pretty poor marketing.

    As an example, an inter-bank quote for USD/CAD right now is

    1.2712 - 1.2717 (spread = 0.0005)

    A bank-to-retail quote from TD Bank's website (possibly several hours or a full day old) is

    1.2440 - 1.2860 (spread = 0.0420)

    According to Neteller's methodology (that is adding 1.9% to the interbank rates) the quotes would be:

    (NOTE: These are not actual Neteller quotes)

    1.2475 - 1.2959 (spread = 0.0484)

    To compare to the TD quote, the Neteller quote needs to be re-centered as such:

    1.2408 - 1.2892


    So, to exchange $100 US to CDN in this example, the result would be:

    Inter-bank: $126.48 CDN (After re-centering to the TD quote. If you happen to be a bank, you could get this rate)
    TD Bank: $124.75 CDN
    Neteller: $124.08 CDN

    The actual "fee" charged is best measured relative to what the rate a bank would get (i.e. the inter-bank rate).

    The TD Bank fee would be $1.73, or 1.34%.

    The Neteller fee would be $2.40, or 1.9% (not surprising).

    So, the Neteller fee is more costly in this example, but by 0.56%. The difference is not going to be the full 1.9% which may be suggested by the language on the Neteller website.

    Again, I'll check this with actual Neteller numbers tonight. It's entirely possible that I've botched a computation somewhere along the way. :)

    ScottyZ
  • ScottyZScottyZ
    Neteller actual spread: 1.2452 - 1.2946
    TD Bank current quote: 1.2440 - 1.2860
    Interbank rate: 1.2678 - 1.2683


    Let's put all the quotes around the Neteller centre of 1.2699.

    Neteller centred spread: 1.2452 - 1.2946
    TD Bank centred quote: 1.2489 - 1.2909
    Interbank centred rate: 1.26965 - 1.27015


    Neteller fee on a $100 US -> CDN conversion: $2.45 or about 1.93%
    TD Bank fee on a $100 US -> CDN conversion: $2.08 or about 1.64%

    So, TD Bank's fee beats Neteller's fee by about 0.29%.

    ScottyZ
  • UnknownUnknown
    You don't... by any chance... work for a bank, do you?
  • ScottyZScottyZ
    all_aces wrote:
    You don't... by any chance... work for a bank, do you?

    I used to, until I discovered that the all the banks are rigged. I'm sticking with online poker instead.

    ScottyZ
  • 88Fingers88Fingers
    ScottyZ wrote:
    all_aces wrote:
    You don't... by any chance... work for a bank, do you?

    I used to, until I discovered that the all the banks are rigged. I'm sticking with online poker instead.

    ScottyZ

    "This has been another BRILLIANT post by ScottyZ.  Good night"
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