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Originally Posted by Matfei
So far I've purchased 2 character slots and the GOTY upgrade... Each time I was charged in British Pounds.
I assumed this was becuase my account is tied to the European server. (I live in Australia).
Now I'm naff when it comes to currency conversion, but shouldn't the price be the same, no matter which currency you convert into?
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No, in more ways than one. The first is explained nicely on this talk page from the official wiki:
http://wiki.guildwars.com/wiki/Talk:...s_Mission_Pack
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Originally Posted by Elvah
"Another thing I am also seriously disappointed about is the pricing. Does ANet use really bad mathematicians, or do you rip off Europe (Great Britain included) on purpose? Let me show what I mean.
The pricing on the site said $29 USD (€26/£17). Working at the airport, I know for a fact that the US dollar hasn't been worth anywhere near that much since 9/11, so I looked it up and did the math (today's exchange rate used).
$29 USD = €19,83 / £12,58 (i.e. 1,46 USD = 1 EUR, 2,31 USD = 1 GBP)
As you can see, that's not what the site says by a long shot. Using the figures above, let's see what Europeans actually are made to pay...
€26 = $38,02 USD
£17 = $39,19 USD
So we pay a whooping $10 USD more than Americans do. Why?" -
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The second comes in the form of exchage fees charged by Credit Card Companies. CC companies charge a conversion fee based on the difference between the two currencies. I'll use my situation as an example. My credit card is in Canadian Dollars.
So if I make a purchase in Euros, the company locates the wholesale exchange rate, with is currently 1CAD=.70 Euros.
They then establish a retail exchange rate, which would end up something like 1CAD = .68Euros.
Now that they've widened the gap even further, they'll charge an exchange fee based on the difference between the two currencies - in this case 32 cents.
The exchange fee will be based on a percent of this number and the total units of currency exchanged.
If the purchase were to be in US$ instead, it would lok more like this:
1CAD=.95US$ wholesale rate
1CAD-.93US$ retail rate
Difference in currency = 7cents.
So were looking at a difference here of 32 cents for every dollar, or 7 cents for every dollar.
This fee only benefits the credit card company, and in no way assists A-Net in their assumed goal of increasing profits through direct sales and reduced overhead. It is an "incidental" (and additional) charge incurred by the customer for using the online store, rather than purchasing in their native currency from a local retailer.
Now folks like me will be paying a conversion fee regardless of whether it's to Euros or US$, but the fee will be smaller if the difference between currencies is smaller, and so I am "dinged" less.
Folks like the other fellow who started the thread entitled "Problems with the online store" it's a bit of a bigger pain. S/he is living in the United States (Chicago). They are being asked to pay in British Pounds. If they were being charged in US$, there would be no conversion fee. But with current rates, the US$ is worth less than half a British Pound. So his/her exchange fee will be very high and a great disincentive to shop in the online store. They'll be asking him for 23.99 Pounds Sterling, which wholesale exchanges at 48.37 US$. The retail exhange is likely to be more akin to $55.17 US, plus the credit card fee for converting the currency.
So very quickly a game that sells for 39.99 US in the online store is now costing our poor friend in Chicago $58 USD. S/he is paying $18 more because the online store won't let him/her purchase using US$ - and they are a resident of the USA.
So, yeah, it makes a difference.