New T& Cs from August 2020

Shows 6k € for me also in app version 6.39.x :yum:

Update: Just checked now (6 days later) and limit is lowered to 1000eur.

Nope, unfortunately, I am with the 1000€ limit. It will take some time but eventually, you will be down to 1000€ :frowning_face:
That’s sad because with this limit I have to pay rent in Stockholm.

Exactly, until you hit that limit. So, for example, if I have a currency other than EURO, and I want to buy an iPhone on amazon in Europe, I’ll get a fee, because I will hit the limit and it’s in a different currency, thus it will be a fee on the spending. How’s that not a limit on a transaction without a fee?
Basically anything I buy above that limit in another currency than the currency my account is, will get a fee. It’s not that uncommon to spent more than 1000 euros in another currency, especially these days that you can buy anything from anywhere. I don’t know any bank that does that. In my national bank if I pay with Visa, I get Visa exchange rates (which often are even better than Revolut ones) without any fees or limits.
What I’m trying to say is that the new limits are too low and force users to upgrade.
Because of this, I’m actively searching for a better alternative, unfortunately.

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Well, sure.

Many banks charge for EVERY payment in a foreign currency. From the first cent. Some don’t have a fee, but have bad rates, basically unstated fees.

You can now do the math and find the option that works best for you. For some, even spending over the limit might be still cheaper than with a different provider. But certainly not for all.

What I am saying is it doesn’t make much sense for me to be irritated about a limit. The total costs of using a service are relevant.

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So you dont mind wasting money?

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So “relevance” equals “wasting” for you?

On this forum, when there is controversy against Revolut you’ll always found a “member” who’s trying to convince you that what :r: is doing is absolutely fine.

Like:
Revolut hasn’t ripped you off 5000€ of the exchange limit you had before… NO bro, c’mon, look at the positive side of what :r: is offering. You still have 1000€ left every month… There is no reason to complain, really. Be happy, see trees of green, red roses, see them bloom, and think What a Wonderful World. :notes:

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You get a free product

What do you expect?

You can get metal for higher currency exchange rate

Get metal plan? Since the cost are irrelevant

I distinctly remember checking my account in September that I was lowered to the DKK 7 500 limit, but apparently it has reset itself back to the old DKK 40 000 limit in October.

It is most likely just a mistake, or it could be a temporary corona thing.

My limit lowered to 7500 DKK

The main problem, from my point of view, is that it limits not only exchange rates, but also a limit the spending in another currency. You cannot spend in another currency more than 1000 euros per month, without incurring a fee.
I have an account with a traditional bank, and I don’t have a spending limit in any currency, nor do I have any other costs with that account (they probably make their money by providing loans to customers). I used Revolut mostly for exchange, now with this change, Revolut becomes less and less useful.

What’s Revolut’s motto - “Get more for your money”? Doesn’t seem so with this change.

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You’ve misunderstood this! It’s not directed to customers but to Nikolay Storonsky, who is the chief executive of Revolut. He gets more from our money.

As he said recently, in an interview at CNBC:
“Every single user is profitable for us”

Screenshot_20201012_105512

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I’m interested!! Is it an online bank open to everyone?
I’m also looking actively to find another banking system with the type of service we had before from Revolut…

Yikes, now I really want to know how they do it.

It’s bank in Romania - Banca Transilvania, I don’t think they have anything online, unfortunately. I don’t have any costs associated with the account and I can pay with my simple Visa card in any currency, without any limits or fees, getting Visa exchange rates, which are comparable or even better than Revolut ones.
The only part where Revolut was better, was for simple exchanges, if I wanted to exchange money, but with this change it’s not so anymore.
I really don’t know any bank that would impose a limit on spending in another currency without fees, which Revolut does with this change …

Some people here think that Revolut is great because everything customers gets is free of charge but that’s not true. Nothing is free in this world.
Our money does NOT sit somewhere for nothing. Like in any other banks, Revolut is using our money to make and earn more money on the Fx market. Storonsky is a former currency trader at Credit Suisse so he knows very well how to do that.

I don’t think that’s an option. The overwhelming majority of Revolut’s customers are regulated under an e-money licence. Revolut is not allowed to invest this money or trade with it in any way to make interest. It needs to be put away in segregated accounts. This is a legal requirement.

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You’re right… but that’s just the theory. I’ll explain below.

You’re wrong! Revolut can’t use people’s money directly… BUT there is a legal trick.

BoA (Bank of England) allow any financial institutions to use their client’s money in a specific way.
In the BoA website this is what’s written:

“Many banks today offer free safekeeping services, with no charge for using your current account. In return, they are able to use the money stored with them to earn a profit, by lending it to other people.

So the trick is that Revolut (or any other financial institution, does not need to be specifically a bank) can creates several offshore companies under a different entity’s name (of course) and borrow money of from itself. Then that company can do whatever they want with the money and can in fact use their own customers money to trade on the financial market.
The name of that trick is called: “Double Deck Scheme” or something like that, I can’t remember exactly the jargon…

Here’s why I think that doesn’t work: legally, all customer deposits under e-money aren’t considered Revolut’s assets. This is critical, because this is the reason why these funds are shielded in case of a bankruptcy. Customer deposits need to be segregated, held in ringfenced (pooled) accounts, in the name of Revolut’s customers. They would not be borrowing from themselfs, they would have to borrow from their customer’s funds, which, as far as I understand, they just can’t do. Customer deposits do not appear on Revolut’s balance sheet. With banks, deposits become part of a bank’s balance sheet. They can “work” with that money, invest it, lend it out.

What you have highlighted, lending money to other people to earn profit, is exactly the bank business model e-money doesn’t allow. Revolut can’t be a lender.*

Here’s a research paper by BBVA about the security of e-money, that dives into many aspects. https://www.bbvaresearch.com/wp-content/uploads/2016/10/Safeguardingelectronicmoneyfunds_en.pdf

(* For clarification: the Lithuanian Revolut bank is a lender, of course. But when customers are moved over to Lithuania due to Brexit, they are migrated to the Lithuanian e-money entity, not the Lithuanian bank entity. Customers in some cases then can chose to switch over to the bank, which offers then different products like a real credit card, but this option is limited to very few customers currently residing in Lithuania, as far as I know.)

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