Wrong exchange rate and fee

#1

Hey everyone!

I noticed a possible bug on the Android app: when I make a purchase priced originally in dollars and I pay with euros, the dollars are exchanged to euros and then this amount is removed from my account, right?

Therefore, why is the exchange rate displayed on the app 1€ = … \$, instead of 1\$ = …€? If use the converter on Mastercard’s website this second rate is the one used to calculate the amount in euros.

Also, this purchase was made on a Saturday and the fee amount is marked as 0€. Since there is a 0.5% fee on weekends for dollars, shouldn’t be value displayed here other than 0?!

Best regards

#2

If a payment is made in USD but withdrawn from the EUR wallet, it appears on the EUR account, conversion rate and original amount shown in the details.

In your example, you have EUR and buy USD. Therefore the rate pair EUR = USD applies.

Weekend markup is factored in the rate. It is not a “fee”, it is a markup on the rate applied. The fee information is about ATM and exchange fees once one hits the limits.

#4

But shouldn’t it be USD = EUR? That’s how mastercard conversions work (check:
https://www.mastercard.us/en-us/consumers/get-support/convert-currency.html), as well as all the other banking tools I used (e.g. N26).

#5

No, this is international standard for forex markets. It might be counterintuitive at first, but ask this question: how much USD do I get if I have 1 EUR?

Mastercard and N26 use mid market rates, where there is no spread between buy and sell.

Check financial portals like yahoo finance and look for EURGBP=X and GBPEUR=X. First is the currency you have, second the currency you buy.

#7

So this means that when I exchange EUR to USD in the app it uses the 1EUR = … USD rate, but when I buy items priced in USD using my EUR wallet the 1USD = … EUR rate is used?

If so, this doesn’t make any sense.

EDIT: it does make sense now, both of these cases use the 1EUR = … USD, which is what it makes sense since these two actions are equivalent. Thanks Frank! I just wish Revolut would inform the users about the markup being used at each moment, since holidays in the UK have the same rates as in the weekends.

I assume the rate on the “rates” menu includes this markup on weekends?

#8

Yes, the Exchange menu in the app already includes the markup in the quoted rate. You can see it if you compare exchanging 100 USD to EUR (= X EUR) with exchanging X EUR to 100 USD.

#9

I don’t think so because the rate EUR = … USD and USD = … EUR is different because of the way they are calculated.

#10

With a markup, EUR/USD and USD/EUR are supposed to be different.

Without a markup, they should be the same, reflecting interbank rates. Bear in mind that the rates can change every second.

#11

Its not a markup, it is the spread between buy and sell. Revolut does not use mid market rates (where EUR/USD = USD/EUR) There is a buy and a sell rate instead, and they are different.

(I think pepe was referring to the weekend markup, not the spread.)