Wrong conversion rate in my first transaction


#1

Hello, I just did my first transaction with the card.

I created the Revolut account in order to get the real exchange rates when paying with card but this has not been the case in my first transaction.

I paid 29370THB and they converted it to 777.17€

According to mastercard webiste it should have been 768.08€ and the real fx rate 768.27€

Where are the 9€ difference? (1.15%) Has anyone experience this before?
Regards.


#2

Hey @velascarlos :slight_smile:

Consider :r: does not use MasterCard’s exchange rate but the interbank exchange rate, which you can check anytime through the app. Also, take into account a small mark-up of 0.50%-1.00% applies during the weekends :wink:

For more information, check the FAQs:


#3

Mastercard’s rates are mid-market rates, not spot interbank. If you’re interested in finding out what that exactly means, you could search this forum or just google it ;-). There are plenty of websites available explaining these terms.

Cheers!


#4

There are no info about the hidden mark-up fees during weekends on the FAQs. What does that 50% fee difference between 0.50% and 1% depends on?

Is interbank exchange rate always worst than MasterCard?


#5

What is the mid-market rate?
The mid-market rate is an exchange rate unlike any other. It’s the real one.

In the world’s currency markets, traders define the rates at which they are willing to “buy” or “sell” a specific currency. The mid-market rate is simply the midpoint between demand and supply for a currency, and because of that, it changes all the time.

But that’s as technical as you need to get. The most important thing to know is that the mid-market rate is considered the fairest exchange rate possible.

The mid-market rate isn’t a secret either. Its the rate you will find on independent sources such as Google, XE and Yahoo Finance.

So Mid Market rate is the real and fair one and interbank is the one they are willing to sell you for that highly differs from the one they are willing to buy from you?


#6

The mid-market rate is a mathematical construct while interbank rates are the actual rates banks buy and sell currencies for on the actual wholesale market.

It is up to you what you see as more “real”.

Look at the stock market. The price for a stock is defined by demand and offer. Like a stock can have a different price on different stock markets, a currency rate differs from market maker to market maker. There is no such thing as one single rate.

While Mastercard defines 1 rate per day in retrospect (mathematical mid-point), the spot interbank rate always fluctuates while markets are open. It can be better at times, identical, or worse. That is in the nature of live fluctuating vs. mathematical mid-point, calculated in retrospect.


#7

There sure is. Exchange, What exchange rate will I get.


#8

Thanks for the clarification. Really informative.

Regarding transactions in THB, I read from the FAQs:

“For a few illiquid currencies, we provide the best rate we possibly can. For THB […], we apply a small 1.5% markup on the exchange rate.”

And then:

“At the weekend (Friday 23:59 - Sunday 23:59) we apply a small mark up on the spot rate as the Forex markets are closed. We take the rate from Friday 23:59 and apply a 0.5% mark up on major currencies and 1.0% on other currencies to protect the company from potential losses due to a large fluctuation in the rate. For illiquid currencies like Russian Ruble and Thai Baht, there is 1.5% mark up on weekend”

Does it mean that if I buy in THB I will be normally be charged 1.5% extra on weekdays and 3% extra (1.5%+1.5%) on weekends or just always 1.5% for THB?

Are those starting times for the weekend UK time or local Thailand times?

Regards.


#9

Hi. It means 3% on the weekend as I know. You can prevent double markup by making exchange in the app from your currency to THB before weekend and use it. Weekend is definitely in the UK time zone. One more clarification about MC an Visa exchange rates - from my experience usually described on their site amount is blocked but when it is debited it is not same amount. I have bank visa and it should be fee free but in my tests it is not. Revolut usually have better exchange rates ( my test was PLN to EUR)


#10

Thanks for your answer. It will be nice if some of the Revolut employees @Juliopp or @Frank, that answer before, can confirm this 3% extra mark up on weekends for THB


#11

Hey @velascarlos :slight_smile:

We are (that means, @Frank and I), by no means :r: employees, but customers like you or anybody else :wink:

I found a 2% mark-up during non-market hours for THB:


#12

Hello @Juliopp, thanks for answering, I can see that there is contradictory information in different sections of the web so I am not sure which one would apply during the weekends.

Sorry for considering you a Revolut employee, I thought you both were by the way you answer my questions. Its really funny to see you affirming that @Frank is not an employee as well :joy:


#13

Hey @velascarlos :slight_smile:

As far as I know, he’s not. That’s all :wink:
:r: employees have a little :r: next to their profile picture.


#14

I have contacted support and one of the guys said that its 1.5% mark up during the weekends but another guy said 3% mark up (1.5+1.5%).

See attached:

Does anyone knows what mark up applies for THB during weekend and weekdays?

Regards.