How are you helping your foreign hosts exchanging currency?

Hi everyone,
I would like to understand and know how you help your foreign travelers exchanging some local currency as i’m working on a solution that i will share with you as it could benefits everyone?

Thanks,

I don’t. No-one has ever asked for help with it. They sort it out themselves.

Looks like you are looking to develop a solution for a problem that doesn’t exist.

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If they ask us (almost never happens) we tell them all the good options:

  • Local currency from an ATM or a bank.
  • Money exchange in a money exchange (slightly safer).
  • Money exchange in the street (better rate).

I understand what you mean but as a traveler myself i have sometimes outrageous fees or bad rate when i’m withdrawing at the ATM (airport or other).

When I go into a bank with my VISA card I pay € 5,00 to get € 1.500,00. The € 5,00 is a fixed price. So I have to take care not to be that stupid to take € 50,00 out of an ATM. If I am traveling in a country or in situations where I am not comfortable traveling around with a big amount of money, I will withdraw smaller sums (€ 250,00).

Anyway, I never leave home with a large amount of money to exchange because I feel uncomfortable traveling around with it. The only exception I ever made was in Argentina, where I could get 50% more on the black market (= a very neat office building where I could check every note they gave me with a marker pen and a small fluorescent light I bought for the occasion).

Exchange solutions really depend on where you are traveling to, and that’s why I’m surprised you could have a universal solution. (That’s supposing you could even beat my VISA card costs.)

Two years as a host never been asked; five years as a guest and never asked a host. But did the record I use Monzo which charges nothing for foreign transactions or withdrawals. I get the MasterCard rate each and every time.

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Thanks Zandra :slight_smile:, i always noticed that the MasterCard rate wasn’t as good as the spot rate and i was loosing money during conversions. My last recent example was a gateway from NY to Copenhagen DKK for the week-end.
Another useful way here, will be to find someone exchanging your leftover currency, at the airport, when you came back home or anywhere it’s convenient for you.

What is the spot rate? You do understand that if I’m swapping currency with someone I am possibly loosing out if they’ve bought their currency on a less advantageous rate?

And the MasterCard rate is different from what your card issuer may provide. The MasterCard rate is closer to the actual exchange rate (which you can never get anywhere.)

The spot rate is the official inter-bank rate for currencies. Usually when you withdraw at the ATM, banks are saying that they don’t charge any fees but they are applying a bad exchange rate and so you are getting less money that you could ultimately get.

With our idea, you won’t loose any money.
Let say that you are from the US and you are going to CUBA. You bring some US dollars with you and instead of changing it at a “casa de cambio” which will take a fee, you will find a US/EU/UK/AUS… traveler who will be interesting in exchanging what he has in CUC for some US $. Or even a Cuban citizen who will be interesting in getting your $ as he plans to visit some relatives(now the relationship warmed up).:smile:
We will inform both of you the value that it represents (exact exchange rate) and you will perform the exchange by meeting him.

Hope i was clearer and you see the interest for both travelers :slight_smile:

In theory a great idea… I’d love to exchange money at the true rate!

How will you make money to support the infrastructure you’re going to have to put in place in order to connect A with B? At the very least you’d need to charge a fee wouldn’t you?

Awesome, I’m glad you like it. :grinning: :grinning: :grinning:
At the beginning we won’t, we will keep a completely free version supported on our own money but with the community growing we may add some Ads to cover the fees.

We will add other features as step 2-3 to generate revenues but more importantly ease the solution for the users, ensure a better security between the travelers during the exchange…and still continue growing the community.

More travelers will post the leftover they have or what they want, easier it will be for all of us to find what we need, where and when it’s convenient.
Share the word about TRANSMUTE and don’t hesitate to let your email on transmuteapp.com to be aware as soon as we are live.

Thanks for your time and feedback.

I don’t know about most travelers, but I don’t exchange money, I get it from atm’s. As for spot rates, that makes sense for millions, but not for a few hundred. How muc would you 'save"?

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You are exchanging money @Louise just via an ATM. And the savings can amount to a least a hundred over a short holiday assuming you are also avoiding bank fees etc

No offence to the OP but I can’t see this working as it’s dependent on the service being fast and reliable. Most people only remember they need to get currency days before or on the day they fly. They also need to be able to buy the amount they need (say £1000) not what another traveller wants. (What happens when I want 1000 euros but the person swapping with me only wants £300. Where do I get the rest of my currency? And what happens when I get given fake notes?)

That would put a lot of pressure and expense on this service and without fees all I can see is a loss making enterprise. With fees it’s the same as everything else on the market.

Anyway good luck if you’re able to pull it off!

Don’t you need a license to be in the currency exchange business? Otherwise isn’t it money laundering?

Debthecat
It’s an interesting question and no we no need to have any licensing because we are just a platform and the exchange isn’t going through us.
We will limit the value of the amount exchanged especially in the free version and control the number of amount and transactions performed by the user to spot any abnormal behavior from the customers.

Louise,
I understand your point of view but I ensure you that banks don’t apply the spot rate. It’s how they do money out of it and when it’s the perfect rate, they apply fees. Usually they take from 3-5% (when it’s not more) noticed on most of them and many articles wrote on that topic by travelers and journalist (nerdwallet…).

@Zandra,
Our idea isn’t to revolutionize the international banking system :grinning:, more to provide an alternative solution for all international travelers. It will be a great opportunity to chat and learn from someone who just came back from the destination you plan to go.
You won’t be afraid to withdraw too much money at the ATM because you will have the possibility to get rid of the leftover currency at a faire value, or the opposite and get some more to be able to eat/drink and wait at the airport before the flight or during a layover in a total different country.
Those who need some to take a taxi and arrive in the city where the exchange rate is better than at the aiport…
You will only exchange for the equivalent converted amount, the rest of the money will need to be obtain through the regular solutions already in place but avoiding 3-5% on 300 is not too bad if you can do it quickly with another traveler at the airport. Also considerate that banks don’t take back the foreign coins and charge you another 5-10% for a deposit in foreign currency.
Even in the free version we will require a multi point identification and rating system which will dissuade people to trick other travelers with fake money.

Overall it’s like airbnb or other peer to peer economy. To have the local experience and save some money you potentially take some risks when you stay at someone’s place in a foreign country; you trust reviews and pictures posted.

Many, many more years as a host and I’ve never been asked either. People have been travelling abroad since the concept of currency was developed. Travellers aren’t children (not Airbnb ones anyway) and are sensible enough to carry on in the way they have been doing for years.

For me, this doesn’t bring any benefits to me as a host. But maybe it does for travellers.

This is very true. For anyone interested in reading more http://www.creditcards.com/credit-card-news/getting-best-currency-exchange-rate-abroad-1267.php

At the same time, not sure i will fully trust all said on a website called credit card, sponsored by credit card talking about credit card :grinning: :grinning:


@FlorianC right there you lost credibility.

If you’re going to be offering a money product you need to fully understand what your competition is already offering. And you need to listen to how people are currently using existing products / what they would want from a new product.

You are trying to wag the dog. There’s no point sending me a link saying cash is king when several of us have already said we use cards to get our currency. In any case both articles recognise cards are exceptionally useful and often the best way to get cheaper rates.

We use cards because of the protection it provides, because you can change larger amounts, and because it provides a better rate than changing cash into alternative currency. Saving a few pence over the MasterCard rate will not make me swap over to cash as I’m happy to pay a small premium for convenience.

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@Zandra, True and i agree that the solution we will provide isn’t covering every and all needs because the offer is indeed already wide however my points were to show you all those little cases which make a trip a real success and amazing:

  • get rid of your leftover currency at the end of a trip,
  • get that little amount of money to be able to take a taxi/bus and leave the airport,

    :grinning: