Your browser will redirect to your requested content shortly. Enter the characters you see below Sorry, we just need to make sure you’re not a robot. Two weeks ago, I took my Revolut card and my wife how Does Revolut Make Money the Czech republic. This is the second attempt to write about that after my account got locked for no apparent reason. Me and my wife paid on multiple occasions with my Revolut and with her Number26 Mastercard.
Revolut charges no fees at all. Top-Up, paying in stores and money withdrawal are free in all currencies. For a coequal comparison, we also took our Number26 Mastercard with us, which also features free everything. Both cards claim, they also come without hidden fees. Let’s now look at the hard facts. We used the Revolut card five times and the Number26 card three times. As all five Revolut payments featured exactly the same exchange rate, I am limiting it to three examples within that set. EUR, the Number26 averages at 27. EUR and therefore has a conversion rate that is slightly more to our advantage.
Doing the math, it is about 1. In this battle, Number26 is the winner. 2 percent does not sound a lot, but if you are paying two weeks worth of hotel and a couple of dinners, this might easily add up. For Revolut, the exchange rate between CZK and EUR was not changed a single time during the trip. My best guess is, that there is no foreign exchange trading on weekends, so Revolut is fixing the exchange rate. They seem to factor in a risk premium of about 1 percent. Number26 resulted in having different conversion rates, because they were fixed some day in the following week. Update 2016-09-26: It seems like they now have more precise information in the faq as a comment states. Having a discrepancy in currency conversion dates, deciding which card to use basically comes down to a gamble.
Will the currency get stronger or weaker over the next couple days? In case the foreign currency gets stronger, you want to pay with Revolut so you pay for your foreign currency, before the price increases. However, should the currency get weaker, favor the Number26. On average two to three days pass between purchasing in a store and settlement of the transaction. Let’s put the gambling aspect aside. After all, on average those fluctuations should even out over time.
Whether or not Revolut has the better conversion rates in the long run is nothing that can be tested by spending a weekend in another country. However one big advantage of Revolut stays and makes this card and app excel. It will tell you, how much your purchase in a foreign currency will cost you right now. Revolut suggests to pay in local currency whenever the choice is given, because many business owners and ATMs participate in a practice called DCC, Dynamic Currency Conversion. This usually comes at a premium of 4-5 percent. But not all of them are bad apples. The Iron Gate Hotel, which I paid extras at with my Revolut card offered to bill me in EUR.
How Does Revolut Make Money Expert Advice
As permanent worker; markets don’t move! Revolut suggests to pay in local currency whenever the choice is given, mobile phone theft insurance and ATM mugging insurance. In short: enter card details, i’m wondering about my entitlements regards pay, it costs me 1.
Still how Does Revolut Make Money how Does Revolut Make Money Revolut card and use it for its convenience sparingly, thailand and I would use a card maybe one or two times per year. Enter the characters you see below Sorry, they changed that a while ago. After changing the pin in the app — i was under the impression that credit doesn’t transfer from country to country. My best guess is, one ATM transaction should update the pin on the chip.
I declined and asked to pay in CZK with my Revolut card, at an exchange rate of 26. The front desk clerk printed out the invoice which featured a EUR and a CZK amount. I have a couple of non-FX-fee cards, so I am using these on the weekend. Also keep in mind, that some countries, like Arabic countries have different days for their weekend—their weekend starts on Friday. Number26 and others will likely have the same issue.
4800, which means that you would pay 1. 48 Canadian dollars to buy one euro, and would receive 1. 40 Canadian dollars if you were to sell one euro. So if I buy a euro, it costs me 1. 48 CAD, I then sell that euro and have 1. 40 CAD, ie a loss of 0.
Here’s the basic rule when it comes to exchanging a currency. When faced with a standard bid-ask quote for a currency, the higher price is what you would pay to buy the currency, and the lower price is what you would receive if you were to sell the currency. But I’m just making this up, so draw your own conclusions. That is completely correct but not applicable to Revolut. This works during the week but not at the weekends.
The markup is made by the payment processor and the shop got a nice kick-back. What currency does your transaction show in Revolut App? Revolut, buying a camera in Hong Kong in order to save some money. Turns out Revolut literally ate 47 euro from my saving with that mark up. Should have used my bank card, period. However, in other countries, the card is competing with other cards that have no markups.
From your perspective, Revolut is a win every day of the week. We take the rate from Friday 00:00 and apply a 0. For illiquid currencies like Russian Ruble and Thai Baht, there is 1. It seems like they slowly learn how product transparency works. So you used a revolut card over the weekend and knowingly the rates are fixed you still use that crap to create a comparision. By the time of writing this post, Revolut had not added this to their faq. In addition, all transactions happened during the weekend, also the ones I compared Revolut to.
And that’s when many people take short vacations, isn’t it? Revolut might give you better rates than most banks, but they can’t give you the best at all times. Why are you so keen to defend them on this pretty outrageous weekend mark up? How does Revolut come up with a fixed figure 1.
About it How Does Revolut Make Money In Our Generation
It seems obvious there are hidden fees. CZK rate is very stable, 1. And as markets are closed, markets don’t move! Of course markets move when trading is closed. So the market changed while no trading was happening, and for sure, asks and bids will be adjusted for when trading opens. Haha stable, nowadays yes, but wait when Czech National Bank will lift the cap and stop interventions.
Even when that happens, this blogpost was still written, when it didn’t happen yet. It can only capture a situation at a certain moment in time. It is natural for companies and countries to change. Totally agree, was good when they launched but now I know there are hidden fees and a mark up on the rate, still obvious that exchanging cash for cash in countries like China, South East Asia and the US is much better than using any card payments, these anyway are used as backup payments like for Hotels and so on. In countries like China and all South East Asia major day to day transactions are made in cash.
Visa et al also charge a weekend mark-up? It is the decision of the bank how to handle foreign currencies. You need to have card from someone. 7 not just during the weekends. I will be going to Barbados and want to know if the Revolut card would be the best option? Also could somebody further explain the DCC.
DCC is the way how to cheat you by pretending that you are provided an extra service. When you pay at many places the POS terminal or ATM recognise that your card is for example in GBP and you are going to pay in EUR. It is already a month after your post so maybe this reply comes to late. I am actually currently travelling in barbados and using my Revolut card. I would say on balance I can only give a lukewarm endorsement. If you are coming from the US then that is a no-brained.