Cheapest Way to Buy Something from USA?

Ltimothy2 on 06/08/2024 - 14:52

I’m looking to buy a product (online) from USA valued at approx. $4000 USD.

I’m trying to spend as little as possible i.e. best exchanges rates and no international transfer fees.

In the past I had a Citibank debit card which had exchange rates very close to the ‘wholesale’ rates listed on websites such as http://xe.com, as well as no international fees. However since NAB have taken over the Citibank debit cards, the exchange rates are much worse.

Does anyone have any suggestions that would work out cheaper than using my NAB debit card?

Financial North America United States

Comments

  • shmoney on 06/08/2024 - 15:26
    +1

    Two options that come to mind are:

    • 28 Degrees credit card
    • Macquarie Bank debit card

    Both have no international transactions fees and use the Mastercard exchange rate which is close to the wholesale rates. Just be sure to checkout in the foreign currency and let the card do the conversion.

    With a purchase that large, I'd opt for the purchase with a credit card for the extra buyer protection.

  • djkelly69 on 06/08/2024 - 16:11

    However since NAB have taken over the Citibank debit cards, the exchange rates are much worse.

    Do you have any proof of this claim? I am pretty sure it is Visa or MC who set the exchange rate for these fee-free cards, so it should not matter which bank it is with.

    • timothy2 on 06/08/2024 - 17:44

      I used to buy stuff from the US regularly and Citibank conversion was typically very close to the wholesale rates. I haven’t used my NAB card yet but when I was forced to switch I called NAB to ask what rates they use and they said to refer to their foreign exchange rate webpage. I’ve checked these rates multiple times and they have never been as close as Citibank.

    • timothy2 on 06/08/2024 - 17:48

      Just thinking, it’s possible the person I spoke to at NAB misinformed me and the foreign exchange rates on NAB’s website are not relevant for Mastercard transactions and therefore the Mastercard rates may apply. Which would definitely be more ideal than having to open a new account / get a different card.

      • djkelly69 on 06/08/2024 - 17:49

        Yeah I believe people who were grand-fathered in from Citibank get the MC (near wholesale) exchange rates.

        What you got told sounds like the generic response for normal NAB cards.

      • djkelly69 on 06/08/2024 - 17:55
        +1

        Just double-checked:

        I withdrew CAD$243 on 28 June from my NAB (ex Citi) account, and it cost me AUD$267.29. OFX says the rate on that day should have been 1.095427, which equals AUD$266.19. So reasonably close to wholesale.

        MC tells it should have cost me AUD$267.33 on that date with 0% bank fees.

  • sumyungguy on 06/08/2024 - 16:33

    I hope it's a tariff-exempt commodity?

    • timothy2 on 06/08/2024 - 17:42

      Not too sure about tariffs that might apply, it’s just a car part so I’m hoping it’s just GST that needs to be added

      • sumyungguy on 06/08/2024 - 17:44

        You'll likely need a freight forwarder as the item can't be shipped in express freight networks. This may add $700 plus but at least they'll be able to advise you about the correct tariff classification.

        • timothy2 on 06/08/2024 - 17:46

          Thanks, I’ll look into this. Haven’t had this issue before however typically my purchases have been under $3k USD

          • sumyungguy on 06/08/2024 - 17:48
            +1

            @timothy2: HS Code: 8708.40.42, I think it's 5% but not a customs broker

        • Ocker on 06/08/2024 - 19:06

          OP will likely need the gearbox shipped by ocean freight on a LCL basis. Once seller to port, ocean freight, Australian customs clearance fees and local delivery costs are added they will be lucky to get out of the total delivery costs being under AUD1,500-AUD1,800

          • timothy2 on 07/08/2024 - 12:11

            @Ocker: I’ve spoken to someone else who bought a gearbox from this company. The company declared the box was valued at $1300 USD. It was shipped via fedex (air I believe) and fedex asked for payment before delivery once it arrived in Australia of $469 AUD. Which works out around 25% of the AUD value (1.44 * $1300 USD).

            • Ocker on 07/08/2024 - 12:12

              @timothy2: What's you guess as to the weight of the gearbox and packing?

            • sumyungguy on 07/08/2024 - 14:32

              @timothy2: FedEx International Economy Freight, good solution as you don't need your own forwarder. It must be lightweight to have only cost $469, so not a car gearbox? FedEx International Express has a 68kg limit.

              • timothy2 on 08/08/2024 - 16:46

                @sumyungguy: The gearbox itself weighs 64kg. Must be close when you include packing weight too.

                $469 wasn’t the cost of the shipping, it was the cost FedEx asked to be paid to cover duties and taxes. I’m not sure what makes it 25% and why not just 10%? Any idea how I can learn exactly what taxes will be applied?

                • sumyungguy on 08/08/2024 - 16:51
                  +1

                  @timothy2: See if you can get the breakdown from the other FedEx customer. Otherwise give them a call; they'll need origin, destination, shipping dead weight, package dimensions and tariff commodity.

  • pharkurnell on 06/08/2024 - 16:53

    from USA valued at approx. $4000 USD

    Ok … I'll bite… what is it?

    • timothy2 on 06/08/2024 - 17:41

      Gearbox

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