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Johnny5 Back

How to avoid currency conversion ripoff fee? (when buying L$)

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I have a multi-currency bank card (Monzo), which means it can convert at great rates automatically.

However, Linden Labs forces me to pay in GBP and intentionally sets a really bad exchange rate, when I buy L$. The difference is about 5-10%!

I would be happy to pay in USD and allow my bank to convert, but I see no such option during payment.

Edited by Johnny5 Back
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Not being in the UK myself, I cannot speak about bank transactions to SL from personal experience. It has always been my understanding, though, that payments in the LindeX are in USD.  That means that the conversion has to take place before your money gets to Linden Lab's doorstep.  I do know that's the way it works if you are paying through PayPal, since PayPal always gives you the option of paying in either your local currency or the target currency of your recipient.  When I use PayPal to send money to the UK, I can specify payment in USD or in pounds Sterling.  PayPal does the conversion.  If you are paying with a credit card or somehow directly from your bank, you might ask them if there's a way to do the currency conversion on their end.

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That is strange, yeah - I always pay USD and have Paypal convert the money before (you can have different currencies stored in Paypal and I see no use in stashing Eurobucks - the civilisation on this side of the pond accepts bank transfers as payment... ) Sure Paypal charges for conversion - but last time I looked the fee was less than the other banks charged and far away from anything I consider ripoff (and no, 5% less? definatelly not).

If your conversion rate is so much worse with credit card switching to Paypal (or Skrill - I think LL accpeted that one as well) and buying with USD might be an option.

Edited by Fionalein

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Yes that's what I would have thought -- that it would try to charge in USD, and let my bank convert.

See the attached image -- I entered 10000 L$, that would be $41.33.

Linden Labs would charge me 34.78 GBP for this transaction (and when I buy it, that's really how much they charge).

The currency market rate conversion is 31.06 GBP. That is a difference of 12% !

I haven't tried PayPal, as paypal also has bad exchange rates, although probably not as bad as 12%

pay.png

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That's interesting.  As I said, I am not in the UK myself, so I have had no personal experience buying L$ from there.  That currency exchange notice does not appear on the screen when I use the LindeX here in the US.  If I'm reading it correctly, the transaction is handled by Tilia Branch UK Ltd., which is doing the conversion and charging you its own rate.  If your own bank doesn't have some way to let you pay in USD and avoid Tilia's conversion, I think you will be much better off with PayPal, which does let you submit in USD.

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i'm in europe too, but added USD in paypal as secundary currency, so i'm not sure this would change if i'd use Euro's €   ... i get just this:

191288868_gyazopic.thumb.png.c0d10f2856c49d853edfb9d680c7aa1e.png

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Bear in mind that the UK charges Value Added Tax (VAT).  I am not sure VAT is applied in this sort of transaction, but if it is, that could explain the price difference.

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17 minutes ago, Lindal Kidd said:

Bear in mind that the UK charges Value Added Tax (VAT).  I am not sure VAT is applied in this sort of transaction, but if it is, that could explain the price difference.

yes, but it doesn't explain this difference, VAT in UK is 20 % in the Netherlands where i am  21% it really might be someone keeps a kinda steep exchange rate somewhere in the chain.

Edited by Ethan Paslong

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