So many things in banking and finance sound easy until you have to add currency conversion Then everyone gets sad as you have to decide which party is holding the currency risk
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So many things in banking and finance sound easy until you have to add currency conversion
Then everyone gets sad as you have to decide which party is holding the currency risk -
Chargebacks, right, if you win it you get your money back
But when you bought a $200 product and paid €170 do you get $200(=€160) or €170(=$220) back
(With example amounts picked to demonstrate how the floating party gets screwed) -
Mx Autumn :blobcatpumpkin:replied to Erin 💽✨ last edited by
@erincandescent I'd assume that I would get the amount I paid returned by my bank. So if I was debited €170 regardless of what the dollar amount is at time of refund I would get €170 back.
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Erin 💽✨replied to Mx Autumn :blobcatpumpkin: last edited by@carbontwelve you will probably get €170 back but your bank might end up eating the exchange rate difference
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I've had two people reply to this to explain what they think the end result should be (you get back what you paid)
And, yes, that's desirable! But this post is about how that doesn't Just Work and you've gotta do financial engineering to make it happen -
Ideally everyone's position after a chargeback is the position they were in before the transaction, modulo chargeback fees
In practice someone probably made a currency conversion gain or loss -
@erincandescent modulo??
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@rrika outside of maths "X modulo Y" basically means "X, ignoring/other than Y"
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