Exchange rate when paying for work done

[Scarwulf]

I am interested in the views of forum members regarding the exchange rate used by tradesmen when paying for work carried out. Do they generally use the current bank rate when they receive the cash or pay it into their bank or am I being naive and it is just another opportunity to rip off foreigners?

The work I had done was quoted in YTL and I paid in sterling, the difference between the current bank exchange rate and what I was charged amounted to an approximate overpayment of 10%.

 

[immac]

You have answered your own question. Pay in TL and avoid this scam.

Ian

 

[stevenjoys]

I am interested in the views of forum members regarding the exchange rate used by tradesmen when paying for work carried out. Do they generally use the current bank rate when they receive the cash or pay it into their bank or am I being naive and it is just another opportunity to rip off foreigners?

The work I had done was quoted in YTL and I paid in sterling, the difference between the current bank exchange rate and what I was charged amounted to an approximate overpayment of 10%.

You want to give tourist rate at the time of the deal, If they want the deal its up to them the lira is now here 2.56850 to the poundat the bank at this minute. to get this rate atakbank you need to change £800. :rockon:

 

[james fowler]

I lost out last year when a job I wanted doing was quoted in lira, a few months later when I returned to pay the bill the lira was at a low of 2.15 so it cost me more. I now get all my quotes in sterling so the exchange rate does not effect the final price to me but could effect the builder instead. This is better for me as I know exactly what I am going to pay.

 

[Peregrine]

You have answered your own question. Pay in TL and avoid this scam.

Ian

its not a scam.

how would people in the UK react to be paid in Euros, or even worse in Thai Baht or Vietnamese Dong (I dont think it would happen)

so, yes, pay in Lira and avoid the issue

 

[immac]

If they are adding 10% to the bill it's a scam. If they agree to take the currency, whether it be Roubles or Shekels, then they take it at the rate the bank will convert it. If they want to build in a punitive conversion rate then they should say so.

Ian

 

[carolk]

Yes Ian, you are right but, it is explained to us ever so patiently every time that if the rates change then this is not a scam!! If the rate was one thing last week and another this week then its not a scam.

 

[Guz1]

I must be really thick because I don't understand Scarwolf's problem. If he agreed a price in TL then that's the price for the job regardless of the exchange rate. Whatever the workman "charged" for currency exchange didn't alter the price of the job. In future agree a price in TL, pay in TL and change your money in the bank or post office where the commission will be much lower than 10%. If you want to pay in Sterling you should agree a price in Sterling and make it clear from the outset that the price will remain the same regardless of currency exchange rates.

 

[Peregrine]

I must be really thick because I don't understand Scarwolf's problem. If he agreed a price in TL then that's the price for the job regardless of the exchange rate. Whatever the workman "charged" for currency exchange didn't alter the price of the job. In future agree a price in TL, pay in TL and change your money in the bank or post office where the commission will be much lower than 10%. If you want to pay in Sterling you should agree a price in Sterling and make it clear from the outset that the price will remain the same regardless of currency exchange rates.

exactly

 

[immac]

Exactly!

 

[Peregrine]

Exactly!

seriously, I dont see this as a scam

you ask a workman to do a job and normally pay him in his local currency.

If you offer him some other currency then he has a right to be wary and quote you an exchange rate favourable to him - after all if the rate changes between him getting the £ and going to the bank to change them he could lose out

simple answer is to pay in the local currency

so I too fail to see this as a problem, or a scam

 

[immac]

I agree.

Ian

 

[Scarwulf]

Thanks to everyone for their comments regarding my question.

I agree the best course of action is to pay in TL or debit/credit card, then the correct exchange rate is used. This is what I will do in future, I have been very interested in some of the comments made.

I have to disagree with Guz1's comment that the price has not changed, whatever currency is used the price is the price and should reflect the current exchange rate. If the recipient wants to make a "charge" for currency exchange he should say so and that would be itemised seperately and would be the additional price for currency exchange.

I agree that rates change but, even in these credit crunch times, the volatility is not such that a significant loss would be made in a few hours or even overnight. Since buying my house in the sun I have paid for furnishings, white goods and other items and services in sterling but this is the first time the exchange rate difference has been so large. Three months previously the same people charged me the current bank exchange rate when I paid a lira bill in sterling, so I think in this instance it is definitely profiteering particularly as I paid some of the money up front.

Thanks again for your comments

 

[Guz1]

Scawolf:

I wasn't suggesting that what happened to you was fair. Clearly it wasn't fair and the currency exchange was a means of getting extra money from you. The price of the actual job, however, remained the same because if you had paid in TL the extra 10% wouldn't have come into the equation. In other words, the price remained the same although the cost to you was higher.

We learned the lesson about paying in TL a few years ago. We used to pay some expenses in Euro and the Turks were always happy with that as long as the exchange rate was in their favour. One year the Lira started strengthening against the Euro and the Turks insisted on payment in TL. OK by us. Although we had a last minute scramble to get change we learned our lesson. Next year the Euro strengthened and has continued to gain against the TL, but we continued to pay in TL. Now those particular Turks have learned their lesson that for one short term gain they are losing in the long term. We're all on a learning curve and, as you know, there's no sentiment where money is concerned. It's best to carry out transactions in the local currency especially where there's a delay between agreeing a price and final payment.