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I recently joined Amazon prime unknowingly and USD99 was debited on my non-USA credit card for an annual membership. I canceled the membership and was refunded USD99 after two days. Due to exchange rate fluctuations, I lost approximately USD10. Where did the USD10 go to?

aslan
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    That seems unlikely recently. Has the US dollar fallen 10% against any currency in the last few days? It did fall about 5% against the ZAR in mid September, but since then has been moving in the other direction. I would guess that a more likely explanation might be your bank having different buy and sell rates, and making close to USD10 on the margin between them. If so, your bank has the difference – Henry Oct 11 '16 at 23:55
  • Another possible source of losses might be any transaction fees charged by the credit card company. –  Oct 12 '16 at 10:20
  • Are you asking what actually happened to you or are you asking about a hypothetical? – 123 Oct 12 '16 at 22:01
  • This actually happened to me. As Henry suggested, my bank probably made a profit through different buying/selling rates. No other transaction fees were charged. However, I am also interested in a more general answer. Suppose the numbers were much bigger and there was a significant exchange rate fluctuation. In such a case there could have been a large exchange rate gain (or loss) to the party being refunded. My question is: from where does the gain originate (or where is the loss sinked)? This could also happen when there is a time difference between signing and paying for a foreign contract. – aslan Oct 12 '16 at 23:47

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