I wasn't sure how to title this question so I came up with "Ethical" ... I was quoted a price of Euros 80 from a B&B. I was asked to send the B&B a check in the amount of $103.05USD. I emailed the B&B back and asked if this was for the 1st nights deposit and they said yes.

I went on xe.com and did the currency conversion. According to xe.com 80Euros = 98.21 USD so I am getting charged $5.21USD. The 80 Euros included parking, taxes, services and breakfast.

I wanted to check with you all and see if I was missing something ... before I contact the B&B. I surely don't want to upset them .. so trying to think of a polite way to say "my conversion amount came out a bit different than yours."

Thanks a bunch!

Is it possible they have to pay a fee to cash a check drawn in USD and was passing that fee on to you?

If you send them $103 they will be VERY lucky to net €80. More than likely your $ check will cost them more than $5.21. I think they are cutting you a deal.

(What a lot of B&Bs do is take a US$ check and not cash it - then you would get it back when you arrive and pay € cash.)

Why not just send them a bank draft in euros? That way they get "cash" in their local currency, and you get the euro/$ conversion at the bank rate?

Since B&Bs are in general not large operations, I don't think it to be totally unreasonable that they don't offer the "bank rate" for any currency transactions. They are after all making it easier for you by accepting a cheque in foreign currency. My local McD does not offer a very good US$/$CDN conversion, but I wouldn't take them to task...

Do not contact them and complain. YOu are getting a VERY good deal! My French bank charges me 18 euros to deposit a check made out in USD. Just pay up - they won't even net the 80 euro from this transaction.

The B&B gave me the address of their bank in Ohio to deposit the check so I wouldn't be sending it to Germany but straight to the bank for deposit.

Forgot to mention .. I was just curious as to why they would charge the extra so that when I have to pay other deposits I'm aware of what is going on. I would never make a big stink about it. I was just curious.

This is just a deposit, so it isn't clear to me that you are being charged anything, or why you think you are. They probably just rounded to the approximate current amount, that's what I would do, and round up a little due to the inconvenience of a check in USD and due to the uncertainty of the currency exchange rates.

I think you are assuming they will take that check and exactly say it is your payment for the first night. Now maybe they will, but maybe they will just return it to you, and then bill you as appropriate in the euro currency. That is always what has happened to me when I had to send a check as a deposit to a hotel, and they allowed me to send it in USD for my convenience.

Since they had you deposit the check in the States they won't be returning it to you. But I am still amazed they are only charging you $5. No currency conversion will be free of charge and $5 is VERY modest.

I don't know if wire transfer and bank draft are the same thing but when I receive a wire transfer at work there is a $15 fee to RECEIVE it. Even though it is a electronic transaction. $25 fee if I want a letter telling me it arrived, $50 fee for a phone call.

Banks consider foreign currency transfer a profit center, there are lots of not so obvious fees to convert money.

$5.21 isn't a huge amount, I'd say not worth discussing.

Bank drafts in Euros are a horrible idea. My bank (Chase) charged me $25 for one, and I know they charged the person on the other end to deposit it. No wonder so many of these deals are cash only.

Thanks for all the comments.

mykidssherpa, I agree ... it's not worth discussing if it's only $5 but I'm was curious for two reasons ... the first being I wanted to "understand" what the extra $5 was for and secondly, If this happens with all transactions then all the misc. add-ons add up. I'm staying in 7 different hotels for this trip. The most important being that i really wanted to understand so if this happens again I will know the reasoning behind it.

Thanks!

Currency rates fluctuate constantly, so the rate you see quoted on xe.com right now will be different by the time the B&B gets your US dollar check. They'll also be charged a fee by their bank for processing a foreign currency check. They could end up winning or losing a little on the transaction. Consider yourself fortunate they're even willing to accept US dollars!

If you still don't understand about foreign currency cheques, get someone to send you a cheque for 5 euros or £5 sterling, then take it to a US bank: they'll laugh and tell you it's not worth paying it in because the bank charges will be more than the value of the cheque.

In addition to the points that Woiyvonne made, remember that there is no such thing a single conversion rate that applies to all transactions, so it's incorrect to think in terms of an "extra $5" being involved. If you go back to xe.com and click on the link concerning rates to the upper right, much of this is explained.