Well, this may be a brave idea with no chances for success.
Let’s be honest- I guess Revolut treats us with the weekend markup so just that they can make some money on the rates and spread after all. So it’s likely to stay that way forever.
BUT… what if Revolut is genuinely trying to help and the 1% markup is indeed a market necessity?
Why not simply overcome it with a solution that’s universally used by card companies around the world?
Just put an authorization hold with the late Friday + 1% mark-up, but make a final charge using the rate from the time of the charge! Simple as that, and in like 99% of situations, more beneficial to the end user.
Better yet, give us a choice. Either a known rate + markup or future rate but no markup for the final charge. Make it one of the slider options for the card.
What do you think guys?
Really, honestly, the weekend markup is one of the main drawbacks of this service and kind of defeats the purpose a lot of times.
I can believe you as I don’t have full idea how it really works- but common sense perspective is clear.
Pretty much every single bank and card organization out there does it in the same way- charge on weekdays and don’t apply markups.
It’s the Revolut’s idea to convert on-the-fly and not use Mastercard’s rates- but the final result has to be the same.
Merchant’s supposed to be paid in their own currency and cardholder’s supposed to cover this. You can do that in many ways and it’s pretty much risk-free on Revolut’s side.
If what you’re saying is true, so catastrophic visions of liquidity crunch and huge risks, than 1% shouldn’t be enough to cover it. And yet
Yes, but Revolut applies these rates not just for card expenses. “Pretty much every single bank and card organization out there” is not based on multi currency accounts where one can hold and exchange in the app in real time, even on weekends, and then pay in real time via P2P. This functionality is unrelated to card expenses.
Do you know how the mark up is applied? Do we charge 0,5% of the whole transaction? or is it 0,5 % of the exchange rate? Any example that you could provide?
LOL If you think about it for a sec, you will soon know it’s exactly the same thing Just friendly making fun of what you said, not you.
So yeah, they apply ~0,5% markup on “major” currency pairs, ~1% for the rest, a much more for what they call “illiquid”. In theory, that is.
And more seriously- fantastic to see @anon33247966 show on the thread! Andreas- it’s pretty much any weekend that you can observe major aberrations in the weekend markup. Likewise, vast majority of users can provide multiple examples of it.
If you think about it for a sec, you will soon know it’s exactly the same thing