Use Mastercard Rates


#1

Hey everyone!

I have a suggestion: why not use mastercard’s exchange rates? I start to think that the whole inter-bank rates provided by morningstar are usually worse than mastercard’s and Revolut is not profiting from that. Also, the current mark-up costs on weekends make no sense when you have other cheaper exchange rates.

So, I think there should be at least an option for the customers select what exchange rate process they want for their cards, the Mastercard/Visa or the Inter-bank.

What do you think?

Best regards


#2

I’m not sure how the Visa exchange rates play here, but I’d like very much to see weekend rates being equal to Mastercard rates (no markup). :slightly_smiling_face:


#4

Most times the Mastercard rate is even cheaper than the Revolut one on weekdays.


#5

I don’t think so. I just looked at the rates and for example USD/EUR looks like this:

Revolut: 100 USD = 85.72 EUR
Mastercard: 100 USD = 86.02 EUR

So, spending 100 USD costs at Revolut rates 30 cent cheaper.
This means the rates at Revolut are about 0.3 to 0.35% better than Mastercard rates.

It is the weekend markup that hurts…


#6

I guess it depends what currency you purchase then?

In your exemple better to pay Euro charge in Usd with Mastercard


#7

This is not always the case. And I would prefer to not pay the weekend markups (which go up to 1.5%!) and stick to a more standard rate.

Ultimately I think the consumer should be the one to choose.


#8

@arnaud It’s the other way round.:grinning:
Spending 100USD will cost me 85.72 EUR (Revolut) versus 86.02 EUR (Mastercard).
In this example, using Revolut is cheaper.


#9

All i’m saying is if you lose one way, you are supposed to win the other way around, right?

In your example MasterCard is better to buy euros with dollars, which makes revolut better to by dollars with euros: you need less euros to get 100usd


#10

With Mastercard you get one rate for EUR/USD and USD/EUR per day. Revolut’s rates fluctuate every second (when markets are open) and there is a spread between EUR/USD and USD/EUR. Like with all stock market prices during the day, it is impossible to know if a rate at a certain time will be better or worse than the average price that is calculated afterwards. Often Revolut is the cheaper option to buy another currency. And sometimes it’s not compared to the mid market rate calculated per day. This might not apply for all currencies, because it also depends on the market or the company, that provides the rates for Revolut. If a certain currency pair is traded less at a certain market, prices might be different from other rate suppliers and spreads higher than one might think. Like with stocks: not all stock markets have the same price for the same stock.

So Mastercard’s rates are more convenient. And Revolut’s rates are more “real” (when markets are open).


#11

Yes, except people go on vacations more on weekends, which makes the mark-up rate highly inconvenient. We would be better off with the mastercard one.


#12

Have you considered the implications of the Mastercard rate for the in app exchange feature? There would no way to exchange currency in app during weekend and to know the rate beforehand. Also, probably Mastercard would not provide rates at all for such an implementation where no card payment is involved.


#13

And: Revolut is testing a Visa card at the moment. Visa’s rates are considered to be a little bit worse compared to Mastercard in general. Two different rates depending on the card brand you use?


#14

I do believe visa requires to use their exchange rate, at least I don’t recall them allowing using other exchange rates unless something changed.


#15

1.1.4.2 Exchange Rates for Operating Certificates
A Member (or its Sponsor) must use the exchange rate provided by Visa to file an Operating
Certificate when a conversion is required. The quarterly exchange rate is provided via Operating
Certificate tools and is a simple average of 3 monthly spot rates for the quarter, sourced from the
Financial Times and Thomson Reuters.


#16

Revolut is definitely using Visa’s rates for their cards. And I believe there are other banks that also don’t.