We all know that interbank rate is better than Mastercard’s but do we really know exactly by how much in percentage terms? Has anyone come across any trustful comparison between these two over a period of time?
I have recently seen this on the Money Guide Ireland:
Now, TransferWise exchange fees start from 0.35% and can be over 4% for UAH on top of interbank rate. The article mentions 0.25% Mastercard’s mark-up for USD/EUR. It would be quite safe to assume that MC’s mark-up’s for other major currency pairs are on comparable level.
In this case, how good Transferwise Borderless debit card is for an average traveller, who just want to use their card for payments and withdrawals abroad is not interested in having Australian or American bank account, etc. It seems that Starling, Monzo, N26 and other fintech’s using Mastercard’s rate for foreign purchases and withdrawals would be cheaper than TransferWise!