Kiwiprops™

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Credit Cards

When a customer orders a propeller, whether it is through a local dealer or direct with Kiwiprops in New Zealand and chooses to pay with a Visa or Mastercard  credit card from an offshore location, they will be paying in a foreign currency, generally US $.

New Zealand has it's own currency and all banking here has to be in NZ $.  We do not run foreign currency accounts, nor do our dealers accept payment. All payments are direct to Kiwiprops in NZ.

Obviously the foreign currency has to be converted to an equivalent NZ $ amount which we do by looking up the mid rate quoted on various banking sites in real time and noting that rate. We then add  0.005 to favour the card holder  in the case of US $ amounts to allow for the fact that the exchange rate may, and to some extent will, always have changed by the time Visa actually process the transaction. This should mean that in virtually all cases where the exchange rate has not moved dramatically - which can happen - the card holder will be charged a shade under the quoted  US $ 1500 to his card account.

The NZ $ or Kiwi is one of the most volatile and frequenty traded currencies in the world despite  the very small size of the NZ  economy relative to major economies which virtually ensures it is volatile.

For Example:

We process a card payment for US $ 1500. The real time mid rate exchange rate off the screen for US $'s was 0.745. We add the 0.005 to allow for future volatilty in the card holders favour - then divide  1500 / 0.750 = NZ $ 2,000.  It is this NZ $ 2,000 amount that we bank in our NZ bank account.

Some card providers have their own additional charges for offshore transactions. We accept no responsibility for these additional charges which are purely a contractual arrangement between the card holder and provider. 

The following link gives the mid rate for the NZ $ over various time periods and currencies.

http://www.anz.co.nz/personal/migrants-travel-foreign-exchange/fx/exchange-rate-graphs/nzd-usd/

The following graph shows how the exchange rate can easily move more than 1 % in the space of just a few minutes.