I have a question regarding wire transfers to a foreign country, which involves exchange of currency. (Note that figures were made up)
We are a NY bank. Our customer wanted to send 20,000 euros to someone in Europe. We disclosed that the exchange rate was 1.5 which would cost him $30,000 US dollars. This amount was debited from his account. However, when the wire was finally released (waited 30 minutes to send) the exchange rate was slightly different. The wire actually cost $29,500 due to a lower exchange rate. We generously put this $500 difference into one of our income GL accts. The customer was never notified of the actual exchange rate when the wire was released, i.e., the actual amount the wire cost.
My question - should this $500 be credited back to the customer? It seems like there may be some compliance issues related to this...
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