Refund weekend exchange-rate mark-up on Monday?


#1

The FAQ explains that when exchanging currency on the weekend Revolut “apply a small mark up on the spot rate as the Forex markets are closed”.

I completely understand why you need to do this, but how about refunding any difference between the mark-up and the rate Revolut was able to achieve when the markets reopen?

At the moment, in order to avoid this mark-up, I have to estimate how much money I will spend in a foreign currency on the weekend, and do the exchange on Friday. It’s pretty annoying if I guess wrong, or forget to exchange before the markets close. I would feel a lot better about getting a “bad” rate on the weekend–and therefore better about using Revolut–if I know the difference will be refunded. (I assume you’re not actually trying to make money from this arrangement.)


#2

As an aside, an easy way to figure out whether the mark-up is in operation is to use the rate converter feature to convert between e.g. GBP and USD, and tap each of the currencies a few times to change the “direction” of the exchange. If you still end up with almost as much as you started with after a few round trips, the markets are open.

This way you don’t have to think about whether the markets are actually open (is it a public holiday??), according to Revolut’s definition.


#3

+1 Amazing feature request


#4

Hey @mjs :slight_smile:

But, if I am understanding correctly, that would possibly imply that you’d also have to pay for the difference if :r: finally gets a worse exchange rate than the one they offered you… :frowning:


#5

Isn’t better if during “market close” is blocked some money and processed after market open?


#6

I was thinking it would work exactly as it does now, except that you get a refund on the difference when the markets reopen—i.e. you never need to pay more than you did on the weekend.

As well as being “fairer”, this would also simplify the FAQ questions around this, and minimize complaints about being charged the “wrong” rate.


#7

What do you mean by blocked? I definitely want to be able to exchange currency by some mechanism when the exchanges are closed, even if I have to pay a mark-up.


#8

At now money/payment is debited with some mark-up. Why not same way as in other banks, during “no open hours” money only blocked and debited when is market open …


#9

So you’re suggesting that the way it works is that if I withdraw 100USD over the weekend, what I pay in GBP is whatever the exchange rate is on Monday morning?

The end result seems exactly the same as my suggestion? (Unless the exchange rate is dramatically different on Monday than on Friday, in which case it’s worse.)


#10

Yes … That’s what’s happening in the banks …


#11

For card payments, yes. That’s how cards usually work, like you said. With Revolut, you can also exchange money and then send it via P2P when markets aren’t open. The money is available for the receiver in real-time and not after credit card settlement. This wouldn’t work like it does right now when conversion would be limited like you suggested.


#12

I think this would be a good idea. If the rate during the weekend is worse than the one on Monday (and therefore Revolut didn’t have any losses), then it would make sense to refund the difference to the consumer.


#13

I assume Revolut suspend the currency exchange if something unusual happens when the markets are closed (a coup?) and it looks like they’ll make a loss when they reopen. So as it stands Revolut is basically guaranteed to make money on weekend exchanges. Of course it’s fine for a business to want to make money, but this doesn’t seem like a good way of doing it!