Our Exchange Rate Display Issue

It’s not a lie though - Banks like Lloyds charge a conversion fee + an additional charge for using your card abroad. Depending on the amount, this makes the % loss sometimes even more than 5%.

Sure there are some outliers that may charge 5% or more but that’s an exception rather than the rule. I’m willing to bet that 90% of cards out there charge 3% or lower fees.

Curve just assuming that you would have saved 5% is slightly misleading. Out of the 8 cards I have on Curve, none charge more than 3% and 6 of them charge 0% exchange fees! So when I pay with the cards with 0% exchange fee, Curve telling me I’ve save 5% is plain wrong, in fact I would have paid more with Curve if transaction was on weekend. :man_shrugging:t3:

Its not an exception really, the majority of UK banks charge a % as conversation and an additional fee for using your card abroad.

That may be your experience but in my experience the few banks I’ve delt with charge no more than 3% combined fee for using your cards for foreign transactions. A quick search shows only 2 banks seem to charge more than 3% combined fees and majority charge 2.75%.

No matter how you look at it, Curve should not be showing you’ve saved 5% on fees when it would not be the case most of the time.

You’ve intentionally left out a large portion of data from Which:

Here we show you what your bank charges each time you use your debit card for overseas spending - based on two x £50 purchases and three x £50 cash withdrawals. Cumberland Building Society and challenger and mobile-only banks Starling and Monzo are the only fee-free debit cards for spending anywhere in the world, while many high street banks are charging their customers through the nose.

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Sure. The number of banks that charge foreign transaction purchase fees less than 3% is 11, the ones that charge more than 3% is 7. So majority charge less than 3% fee as stated previously…

I wasn’t refering to cash withdrawals in my original post, only foreign spending.

Ah but it is wildly incorrectly in the case where you have a card with Curve that they know would be cheaper than curve to use.

Also not showing the difference between Curve’s rate and the ECB rate has been illegal since the 19h April (see other thread about this). Not doing this and showing made up rates for competitors cards is a really bad place for Curve to be.

They didn’t say 3-5% on fees, but on exchange rates, and yes, I’ve seen a couple of Spanish banks using exchange rates 5% higher or even more.

Note as well that the list is outdated and there’s been a lot of improvements in this area - some have removed fixed fees totally, all the rest have no charges in the EEA. Plus you’ve included the ones with minimum fees in your ‘7’, potentially making the majority even higher for normal purchases! You’ve also got to include hundreds of credit cards if we look at the whole market - every one of them is under 3%.

If you are including fixed or minimum fees, then the upper bound of 3-5% savings makes no sense. If you go and buy a newspaper with a card charging 50p + 2.75% your percentage charge is going to be immense. The Curve comparison is looking at exchange rates - hence their app calculates a 2.99% ‘typical saving’ in each transaction as it assumes Curve won’t have any transaction fees.

The Curve support agent who spoke with Bálint must be new - they were confused as well that any FX fees would be disclosed by Curve.

The best execution requirements of MiFID II, which took effect in January 2018, have caused the wholesale FX industry to carry out transaction cost analysis on every client-facing trade. The transaction cost is typically measured in basis points (1bp = 0.01%) from the best available market rate at the time of the trade. The transaction cost takes into account, not only the FX rate itself, but any fees incurred, which can be achieved simply by dividing the CCY2 amount by the CCY1 amount and then comparing the result against the best market rate.

Although I understand that Curve is not subject to MiFID II’s best execution requirements as a retail provider, Curve ought to publish transaction cost as a percentage from the best available market rate at the time of a transaction. It would be misleading to quote only a percentage fee that ignores any spread or margin included within an FX rate.

It’s been nearly a year. Has this been fixed now?

A post was merged into an existing topic: How does currency conversion rate work?