Why does it cost around 1.5$ extra pr. GAU when using credit card instead of bank wire?

And can I move my gold from Toronto to Schweiz?
Tagged:
«1

Comments

  • TauntFourstarTauntFourstar Posts: 218 Bronze ✭✭✭
    Using your credit card is more expensive because of merchant fees your card issuer charges. Previously GM was eating that fee, but now they are passing that fee onto the customer, same as most other businesses. The best option from my experience is to link a bank via ACH if you are in USA and buy gold via bank account. As for moving from vault to vault. I'd have to check but my gut feeling would be Yes. Be aware there is a small fee to transfer from vault to vault. I will be publishing a video on this in the coming days hopefully. In the meantime ill check my account to see and report back.

    Cheers
  • soeborgsoeborg Posts: 29 Tin ✭
    Hey thanks man for the rapid response. I live in Denmark where nobody knows of goldmoney and we have no ACH, so it's really nice to be able to ask the community here. So i'll just have to pay the extra 2 - 2,5% and ends around 3% with goldmoney's 0.5%? It's freaking theft. I use Master Card Debit btw.
  • soeborgsoeborg Posts: 29 Tin ✭
    I was about to buy worth 15K now that the price seems to be raising steadily, but paying 400$ in fees just made me say no thank you.
  • TauntFourstarTauntFourstar Posts: 218 Bronze ✭✭✭
    I just looked up and it allows you to choose transfer from Toronto to Zurich. Fees were proposed to me like the following:

    1gram transfer - .005gram fee
    30 gram transfer - .15gram fee

    I assume all accounts would have same fee. May want to check the support site for validation.

    Good luck with your purchase and even with the credit card fee, it is still very cheap.
  • soeborgsoeborg Posts: 29 Tin ✭
    Okay thanks, dont think 400$ / 3% is cheap tho.
  • TauntFourstarTauntFourstar Posts: 218 Bronze ✭✭✭
    edited April 2017
    Not sure about other deposit options for you but if I were buying that here with credit card at any other vendors' id see similar if not higher premiums. Good luck .

    Also, can you link me where you are finding a better deal online so I may check it out? Thanks much!
  • JoahobJoahob Posts: 22 Tin ✭
    For 15k, you could do a wire transfer. Depending on the intermediary banks it goes through, the total fees shouldn't be more than about $80. Plus the standard .5% to purchase the gold of course.
  • soeborgsoeborg Posts: 29 Tin ✭
    Ye, goldmoney have a very reasonable fee, I don't understand why master card takes 400-500% more then goldmoney for moving paper, but the market should regulate that price to be fair if there is some competition.

    I just feel more comfortable using the debit card, I know what the price pr. GAU will cause it happens almost instantly.
  • AnacapAnacap Posts: 91 Copper ✭✭
    soeborg said:


    I just feel more comfortable using the debit card, I know what the price pr. GAU will cause it happens almost instantly.

    Any form of purchase makes goldmoney locks the current price when the order was taken.
    The thing is you know all the fees directly, while on bank wire transfers the fees are applied from your bank and you can't know them directly from goldmoney, so you need to check beforehand.
  • soeborgsoeborg Posts: 29 Tin ✭
    edited April 2017
    It clearly says "Price per gram is locked in at the time we receive the wire transfer, not at the time it is sent."
  • MelanieMelanie Posts: 1,045 Gold ✭✭✭✭✭
    @soeborg More regionally relevant deposit options are on the way for you! :smile:
  • soeborgsoeborg Posts: 29 Tin ✭
    Nice to hear, could you specify?
  • MelanieMelanie Posts: 1,045 Gold ✭✭✭✭✭
    @soeborg Soon! Sorry to have to keep you in anticipation for now!
  • Skookum_JimSkookum_Jim Posts: 124 Bronze ✭✭✭
    edited April 2017
    @Melanie Very nice to hear indeed, might this hope be for all of scandinavia, maybe EU even?

    @soeborg Hej Danmark, Sverige här. Check your card fees, myself i use a card that doesnt charge anything for currency conversion and also i always do the transaction in € to avoid extra fees.

    This means the bank statement is only about 0.015% higher than the goldmoney statement for the same transaction, don't know what is causing the slight difference but it's small enough to make me not bother.
  • DinchDinch Posts: 67 Copper ✭✭
    When I use my MasterCard here in the US, the extra fee is about 1.98%, which is typical for credit card transactions anywhere in the states. I get 2.12% travel points, so I still make out in the positive when I use my credit card, so I've continued doing it, but the one thing I don't quite understand is why the world market bid-ask spread is about $0.03/gram whereas it's almost $0.3/gram in Goldmoney's vault-based Aurum pricing system. This essentially means there's an additional 0.35% "fee" on top of the 0.5% fee Goldmoney charges. I can't think of a solid economic reason for this, but I don't fully understand the vault-based Aurum system either.
  • TauntFourstarTauntFourstar Posts: 218 Bronze ✭✭✭
    @soeborg
    I am still curious what alternative you had in mind that was cheaper than here.
    I do agree though that there are threshold's with each deposit type that can offer lower fees depending on the amount purchasing.
  • soeborgsoeborg Posts: 29 Tin ✭
    @Skookum_Jim Here is a photo of my screen when I'm about to buy some good old gold. http://i67.tinypic.com/aokq35.jpg
    As you can see I've to pay 11 kr. or 1.2-1.3 euros extra then the market price showed in the top. If I choose to buy the gold with euros I have to pay the same extra, 1.2-1.3 euros. If I choose to use bank wire there will be only the fee from Goldmoney as seen here: http://i66.tinypic.com/2hf4axg.png

    @Dinch Okay, interesting to hear, as said I calculated the fee to be around 2.5-2.8% here. I don't know if the fee is coming from using MasterCard but when I choose bank wire there is only the Goldmoney fee of 0.5%.
    Why goldmoney charges more for the gold I don't know, maybe it's the price among people in the goldmoney community that is being shown and charged.

    What is travel points?

    @TauntFourstar I'm not a big bleep goldmoney investor, I just think it is more safe to have your value placed in gold. I don't know the price anywhere els than Goldmoney's and I like that you can easily pay other people with gold so that it has the potential to can become the worlds new currency.

    I can either use bank wire witch is the cheap or mastercard.
  • TauntFourstarTauntFourstar Posts: 218 Bronze ✭✭✭
    @soeborg
    I hope that the new option Melanie hinted at can give you as good of a buying opportunity as those with ACH which is literally no fee other than the advertised as low as .5%.
  • soeborgsoeborg Posts: 29 Tin ✭
    @TauntFourstar yea I hope so too... those 3% is a lot when you think of it in gold price, that it has to rise 3% before you start making money. I listen to peter schiff a lot and I believe that the trust will fail to the dollar and the us government into a big advantage of the gold price.
  • TauntFourstarTauntFourstar Posts: 218 Bronze ✭✭✭
    Yes 3% is high especially when you have to sell it back for another .5%, although if you are using a method that only charges the .5% then it makes a big difference. Ill be interested to see what is coming your way... I still say its better for smaller transactions than a local store here where they charge a high premium for a 1gram. at least GM allows redemption in the .0001 incriments. you will not see that anywhere at a local store.. they are not in the business of buying specs of gold.
    the video I put out where Roy hints at a big announcement in May or June and Melanies hint at some options is promising... hope it resolves a lot of the issues we have been seeing with accessibility to the low .5% fees for those that don't currently have ACH and have to use wire transfer or a card method.
  • soeborgsoeborg Posts: 29 Tin ✭
    edited April 2017
    @TauntFourstar I know its not a lot compared to other places, but the reason I chose to start buying gold was because it was easy and "cheap" here.
  • soeborgsoeborg Posts: 29 Tin ✭
    @Skookum_Jim What credit card do you use when transferring swedish krona into gold?
  • Skookum_JimSkookum_Jim Posts: 124 Bronze ✭✭✭
    @soeborg I use https://www.santanderconsumer.se/kort/mitt-kort/ hope you will find a similar solution in Denmark! Given Melanies comforting words it might be a passing problem anyhow :)
  • soeborgsoeborg Posts: 29 Tin ✭
    @Melanie I have talked with my bank, and they say it isn't my master card debit provider who is charging such a big fee, which happens to be almost 10 GAU in the case shown in the pictures below.
    Who is it that is charging the fee of 10 GAU, could you please tell me?

    http://i67.tinypic.com/aokq35.jpg
    http://i66.tinypic.com/2hf4axg.png
  • PinkdogPinkdog Posts: 511 Silver ✭✭✭✭
    @soeborg google credit card fee and start reading. The credit card companies charge a 2-3 percent transaction processing fee for all purchases. At your local store you don't see it because the retailer pays the fee and passes it on in the form of higher prices. Goldmoney does not cover the fee and provides transparency and choice. If you want to avoid the credit card fee use direct bank transfer. Option number one.
  • Skookum_JimSkookum_Jim Posts: 124 Bronze ✭✭✭
    edited April 2017
    @Pinkdog You would laugh if you saw the fees banks here on our side of the pond charges for transfers to US/CA. Creditcards/Debitcards seem to be our least expensive option in waiting for SEPA transfers (that systems works all over the EU so most likely it's on our goldninjas™ priority list :)
  • PinkdogPinkdog Posts: 511 Silver ✭✭✭✭
    @Skookum_Jim thanks for the insight. I guess banks around the world are all the same. I wish there was a more economical way as the credit card method is expensive too.
  • soeborgsoeborg Posts: 29 Tin ✭
    edited April 2017
    The bank wire takes up to 2 days to complete my country I found out, I still like the credit card option tho because it is faster and easy but expensive in the long run. With my new knowledge I will try to make a bank wire for my next purchase. My bank will charge me 10 dollar for a transfer so that isn't too bad, they are a really good and reliable bank, very personal bank I think but there also aren't too many of those here.
  • CerkauCerkau Posts: 1 Tin ✭
    After a multi-month hiatus from my GoldMoney account, today I decided to make a small deposit. The process seems to have changed a little since the last time I used it. By my calculations, for a $100 ACH deposit, I am being charged a fee in the range of 0.8-1.0%. For a credit card deposit, I am being charged around a 2.8-3.0% fee. I do not recall there being such a large discrepancy between the two methods. When did GoldMoney start passing along the extra credit card fees?

    Also, why is the ACH deposit being charged 0.8-1.0% when all the GoldMoney literature states it should be 0.5%?
Sign In or Register to comment.