I purchase some stuff on amazon today before making the payment I was given the total amount of my transaction in NAIRA, a function on Amazon which helps buyers to know the actual amount they are actually paying in their local currency.

After confirming how much I am to pay in NAIRA, I clicked on the Place your order in NGN button to complete the transaction, but to my surprise 1st bank deducted way more than I was advised by Amazon. I know they will deduct some charges but they deducted an additional N50,000 for a transaction worth just N113,000.
www.nairaland.com/attachments/3478454_2nd_png7311bf52428eb097110d452fa64cd479

I placed a call to their help center and I was told that I was charged at an exchange rate of N315 per $, for Christ sake is that the official exchange rate or 1st Bank Black market rate. We all know CBN rate which is not up to N200 so I wonder where they got N315 from. I had to double check CBN website to confirm
www.nairaland.com/attachments/3478458_cbn_png30fde791739fa77503b5a69675cd639c

Is this normal or have I been defrauded by 1st Bank......if it is not normal what should I do to get my money back?


Cc:lalasticlala

......

Nigerian Banks are essentially round-tripping the FX in broad day light!
What they do is assume you are paying in dollars irrespective of you choosing to pay in naira and they just simply give you the black market rate.

You were not defrauded. Amazon's rate is just an estimate but not the accurate calculation. Next time contact your Card issuer to confirm the current rate before placing your order.

You are not alone in this, I had similar experience with Zenith Bank last week. When my order was shipped I got some money back from them.
OP, they will still credit you with some Naira.

gists:
Nigerian Banks are essentially round-tripping the FX in broad day light!
What they do is assume you are paying in dollars irrespective of you choosing to pay in naira and they just simply give you the black market rate.

Is this right, are banks suppose to charge us black market rate for online payment.......if so what is the job of CBN then?

Eyop:
You were not defrauded. Amazon's rate is just an estimate but not the accurate calculation. Next time contact your Card issuer to confirm the current rate before placing your order.

But Amazon's rate is even higher than that of CBN ,so who determines exchange rate......our local bank or CBN?

najoke:


But Amazon's rate is even higher than that of CBN ,so who determines exchange rate......our local bank or CBN?

Our local Bank determines the exchange rate that's why i said ALWAYS confirm from your card issuer the current exchange rate before carrying out any transaction online.

Eyop:


Our local Bank determines the exchange rate that's why i said ALWAYS confirm from your card issuer the current exchange rate before carrying out any transaction online.

So CBN is just a toothless Pit bull

najoke:


So CBN is just a toothless Pit bull

That's it my brother. So for 1st Bank to charge you #315 to $1 doesn't mean other banks will charge the same. Some might be slightly higher or lower. Recently GTB charged #299 to $1 another bank charged #304 to $1..etc.

Eyop:


That's it my brother. So for 1st Bank to charge you #315 to $1 doesn't mean other banks will charge the same. Some might be slightly higher or lower. Recently GTB charged #299 to $1 another bank charged #304 to $1..etc.

You. Were not scammed. Firstbank sold at high price maybe because they sourced the dollar at high price too. You can only get it at the official price if you are buying the dollar from CBN.

50k, for this heat season


abeg no let 7am meet u for house tomorro


ensure say by 7am u don dey first bank, and please no do gentle man o....


if u no sabi para, i dey free, come hire me

najoke:


Is this right, are banks suppose to charge us black market rate for online payment.......if so what is the job of CBN then?

I don't believe CBN doesn't know about it. I kind of understand why they do it anyway but it still doesn't make it right.
The country is short of foreign reserve. So, even though you chose to pay in Naira, FBN will still settle amazon in USD (at the official rate - that is why I said Nigerian banks are round tripping!). There is no way FBN will transfer Naira to amazon and even if they did, amazon will not accept naira from FBN. So the payment still has to be done in USD. And with the forex crisis, the only way banks can discourage people from exhausting our FX is charging black market. I can bet you will think twice about your next purchase online if the good is really necessary.

As I said, its not right, but this is the layman explanation that makes sense to me.

Experts can explain further.

gists:

I don't believe CBN doesn't know about it. I kind of understand why they do it anyway but it still doesn't make it right.
The country is short of foreign reserve. So, even though you chose to pay in Naira, FBN will still settle amazon in USD (at the official rate - that is why I said Nigerian banks are round tripping!). There is no way FBN will transfer Naira to amazon and even if they did, amazon will not accept naira from FBN. So the payment still has to be done in USD. And with the forex crisis, the only way banks can discourage people from exhausting our FX is charging black market. I can bet you will think twice about your next purchase online if the good is really necessary.

As I said, its not right, but this is the layman explanation that makes sense to me.

Experts can explain further.

Tnx...I have sent an email to 1st bank with CBN consumer protection in copy

I dey wait for the response, i need to know who run things.....CBN or 1st bank

najoke:


Tnx...I have sent an email to 1st bank with CBN consumer protection in copy

I dey wait for the response, i need to know who run things.....CBN or 1st bank

Any update?
Will like to read what their response is.

OP: banks don't use CBN rate for ur purchases abroad. The only way u get CBN rate for fx transactions is through approved forms M and A. Havent u been listening to your president? Lols. Pls be guided accordingly, ur card transactions are sourced from parallel market.