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USD to CAD Conversion

RyanM
RyanM Member Posts: 1 ✭
edited June 2020 in Ask The Community
Hello

We know that Payoneer applies 2%-2.75% above market rates plus 1% fee when converting currency. I would just wanted to know how the calculations are conducted so that I can make a good decision whether to use Payoneer to receive my Amazon US payments using the US Payments Service and then withdraw it to my local Canadian bank account.

Let's take this as an example:

On January 5, 2016, using xe.com historical currency conversion rates (market rate), the conversion rate is

1.3988570903 CAD per USD
or
0.7148693079 CAD per USD

Can somebody, especially from Payoneer show the calculation how to apply the 2%-2.75% to those rates?

I can think of these scenario:

USD to CAD conversion by Payoneer = (market rate x 1.0375) = 0.7148693079 x 1.0375 = 0.7416769069

It wouldn't make sense to multiply 1.3988570903 by 1.0375 because I would receive more than the market rate. Or is it?

Btw, looking at my payout for that date, Amazon's conversion rate is

1.3581386900 USD per CAD
or
0.736301828 CAD per USD.

Which means

USD to CAD conversion by Amazon = (Amazon rate - market rate) / (market rate) * 100 = (0.736301828 - 0.7148693079) / 0.7148693079 * 100 = 2.9981032577%

Does this mean Amazon FX converter is a better choice?

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