The "Fee Free" Myth
Nearly all "fee free" bank accounts and credit cards use the card scheme rates which are set once a day by the card schemes - i.e., Mastercard and Visa. However, "fee free" might not be the big saving you think it is!
Since the Foreign Exchange ("FX") market rates, also known as the interbank or mid-market rates, are changing every few seconds, these card scheme rates are set with enough margin to protect against adverse market movements throughout the day.
What Does This Mean For Me?
This means that "fee free" isn't actually fee free at all. You're still paying a charge, it's just that these banks and credit card issuers aren't being transparent about it.
Based on data from July, Aug, Sep 2024 across 8 currency pairs, the average markup (which is essentially a fee) over the interbank rate was 0.55%. This varies throughout the day, depending on which direction the market moves, but on average that's how much you're actually being charged with a typical "fee free" account.
Why Should I Use Currensea Pro and Currensea Elite?
When you spend with the Currensea Pro and Currensea Elite cards, you automatically get the Currensea Pro Rate - which is very simply the best available rate on the market.
For the major 16 currency pairings, the Currensea Pro Rate beats "fee free" cards like Monzo, Starling, Chase, and Halifax Clarity. It also beats challenger accounts like Revolut, Curve, and other travel debit cards, high street bank accounts and premium subscription bank accounts.
So whether you're paying for a hotel in New York, or a coffee in Italy, the price you pay is based on that realtime interbank rate at the exact second you pay the bill. This is the market rate, and it's the best there is.
When spending outside the major 16 currency pairings, you get the Mastercard rate with no additional markup - even on weekends and bank holidays!
Where Can I See This Rate?
You can view our live rates at any time here: https://www.currensea.com/pricing/exchange-rates