Pinnacle charging a bad Bitcoin exchange rate

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  • alecmatt5
    SBR Sharp
    • 08-29-17
    • 334

    Pinnacle charging a bad Bitcoin exchange rate

    A little over a week ago I requested a withdrawal from my pinnacle account for $3500 to be paid via Bitcoin. At the time of the request the price for bitcoin was something like $102,100. At the time that the payment was processed the price of bitcoin was $102,917.37, so I'm getting screwed there, but I will give them the benefit of the doubt, and assume that had the price gone the other way, I would've benefitted. (Big assumption, but I will give them the benefit of the doubt). The real issue is that the exchange rate I got for my withdrawal was $104,245.28 which I was finally able to squeeze out of customer service after 9 days of waiting for an explanation. So basically, I got charged a $62 fee to make my transaction in addition to the actual bitcoin exchange fee which was only $1.37

    See here:
    HTML Code:
    https://mempool.space/tx/aaa8eb44882b3b4b9eacebb9b21522107099d4e54a5eb61bd957729174951667
    They keep giving the reasoning that "there may be fees involved from the provider's side, that Pinnacle has no control over and cannot reimburse."

    To me this is a bogus excuse for a couple reasons.

    1. The exchange rate was never made known to me at the time of the transaction, and I was not given a chance to confirm or deny the transaction at that rate.

    2. Anyone can make a bitcoin transaction at the market price of bitcoin and only pay the transaction fee. So to pass on the 'fee' of a marked up transaction rate onto the customer is ridiculous. The 3rd party providing this transaction is providing the service to Pinnacle. For them to claim that its not their fault and they have no control is not true. They could do the transactions internally but rather choose to use a 3rd party service that charges a markup.

    3. If they can just slap on "there may be extra fees" then claim that I as the customer agreed to pay the fees, without ever knowing the amount, where is the line of unreasonable? What if the exchange rate had been $110,000? $150,000? etc... I am supposed to just accept that?

    At the end of the day its only $62 and I will live, but it's the principle of it that is incredibly frustrating.

    Is there any recourse for this issue?

    Does anyone else with a Pinnacle account have any suggestions how to avoid this in the future? Would using Tether work better since (in theory at least) the exchange rate should always be $1?
  • Optional
    Moderator
    • 06-10-10
    • 60278

    #2
    Pinnacle have said they use an external agent to handle all crypto transfers for years and this is what adds a bit extra to the costs.

    I think once upon a time they said it was 0.3% on top of the spread but that was years ago so not saying that is the exact number.

    Also, different exchanges have different rates at the same time. You can't really just look at one and assume Pinny's use the same rate, or that either of them did not have a dip/rise independent of the market at the moment of processing.

    Just one of the risks of doing your business in another currency that you wish to change back and forward into US$ all the time. You would still have the same issue using Euros instead of Bitcoin. At the point of exchange you lose some , on both trips.

    Comment

    • kakad
      SBR Hustler
      • 03-22-20
      • 53

      #3
      I've taken many withdrawals via bitcoin from Pinnacle. Every single one I lost somewhere around 2%. I have never tried a Tether w/d but I imagine because my account isn't in USD, I'd probably take a 2% hit using it as well.

      Comment

      • Thefix13
        SBR Wise Guy
        • 05-14-21
        • 664

        #4
        Just part of dealing in BTC, day to day the price changes and it doesn't really matter when you requested it. It's all about when they send it and how soon after you receive it you decide to sell it. I'm thinking you would not enjoy having a balance in all mbtc at one of the crypto books

        Comment

        • craftbrewer
          SBR High Roller
          • 08-07-18
          • 181

          #5
          Using Tether will not help you. Pinnacle (or external agent who handle crypto transfers) will also charge commision even for Tether even if your pinnacle account currency is USD.

          Comment

          • craftbrewer
            SBR High Roller
            • 08-07-18
            • 181

            #6
            What I don't like is that pinnacle keeps claiming they don't charge any withdrawal fees though in fact they (or their external agent who handle crypto transfers) do. So why not be honest and tell customers that they charge 1-2% withdrawal commision instead of keeping insisting they don't charge any commision while all their customers receive 1-2% less every time they withdraw funds. I actually have no problem with their withdrawal fees. If withdrawal fees are important for them to maintain their business, I am ok with that. Just let the customers know about your commision.
            Last edited by craftbrewer; 01-30-25, 06:32 PM.

            Comment

            • Mike Huntertz
              SBR Posting Legend
              • 08-19-09
              • 11201

              #7
              They also say if you use **** it goes as a purchase and they absorb the cost. Can anybody verify that is true?
              Thanxs

              Comment

              • Mike Huntertz
                SBR Posting Legend
                • 08-19-09
                • 11201

                #8
                Originally posted by Mike Huntertz
                They also say if you use **** it goes as a purchase and they absorb the cost. Can anybody verify that is true?
                Thanxs
                ****(rhymes with the leaning tower of Pisa)

                Comment

                • MalikHusam
                  SBR MVP
                  • 09-07-16
                  • 2519

                  #9
                  Originally posted by Thefix13
                  Just part of dealing in BTC, day to day the price changes and it doesn't really matter when you requested it. It's all about when they send it and how soon after you receive it you decide to sell it. I'm thinking you would not enjoy having a balance in all mbtc at one of the crypto books
                  Good answer.

                  And if you don't like converting currencies, just use Bitcoin Betting. If you can figure out some fairly basic technical nuances to fund your account, and $300 max is enough for you on NBA player props, you should soon forget Pinnacle exists. Your balance is simply kept in crypto. Just like the good version of Nitrobetting (3+ years ago) but without killer contests, parlays or teasers.

                  Comment

                  • raiders72001
                    Senior Member
                    • 08-10-05
                    • 10958

                    #10
                    Originally posted by MalikHusam
                    Good answer.

                    And if you don't like converting currencies, just use Bitcoin Betting. If you can figure out some fairly basic technical nuances to fund your account, and $300 max is enough for you on NBA player props, you should soon forget Pinnacle exists. Your balance is simply kept in crypto. Just like the good version of Nitrobetting (3+ years ago) but without killer contests, parlays or teasers.
                    Soon they are switching over to BTC to make it easy on us. It will be converted to RBTC which is a BTC sidechain. If you can't get a bet matched for the limit that you want, try switching nodes. 82 seems to be a good one. Settings top right, then click node.

                    Comment

                    • DISTROYA
                      SBR MVP
                      • 04-26-12
                      • 2900

                      #11
                      God I miss the NETTELLER days in the early 2000s

                      Comment

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