If you have been wondering about Revolut and the multi-currency account it offers, read on. We take a look at how the service works, why it is different from traditional banks, and how it helps you to exchange money. Revolut offers you a true market rate for your currency. Traditional banks, by contrast, offer Buy and Sell exchange rates, which they maintain a margin on. The difference is their profit.
Revolut is a challenger bank
Revolut is a new challenger bank offering free currency exchange, commission-free stock trading, and P2P payments. It also offers a fee-free debit card, which is linked to the banking app. The card shows a real-time balance of your account in the currency you wish to use.
Although the company’s virtual card works well for online purchases, users can use the physical card only if they want to do a chargeback. They can also transfer funds back to a different account for extra security. In addition, the virtual debit card is not accepted in stores. Although a virtual card may be convenient for online shopping, it isn’t a good option for offline transactions, such as buying groceries. Revolut users will need to have a compatible phone to use the service.
The Revolut app lets you make bank transfers and cash withdrawals for free, while their app also supports international currency exchange. In addition to that, Revolut allows for up to five ATM withdrawals per month. If you go over the limit, you’ll be declined. You can also spend in over 150 currencies, without incurring any fees.
It offers multi-currency accounts
Revolut offers a convenient, low-cost way to exchange currency. Unlike banks, which offer Buy and Sell exchange rates and maintain a margin on the exchange rate, Revolut offers only a single market rate. In other words, the exchange rate you get from Revolut is the most current exchange rate available. In addition, a bank would never offer you a lower rate because they make money on the difference between the two.
Wise and Revolut are both excellent alternatives to traditional banking. Wise is the leader in low-cost money transfers, while Revolut focuses on international travellers and small businesses. Both have cool features such as multi-currency accounts and debit cards. Revolut is particularly useful for international travellers and international businesspeople who need to exchange money without leaving their home country.
Revolut offers low-cost currency exchange services, and it doesn’t charge foreign transaction or fair usage fees. While banks have long charged consumers high conversion fees for currency transactions, Revolut offers lower rates and no foreign transaction fees. This service also allows you to maintain multiple accounts in different currencies and save money on bank fees.
It offers free withdrawals abroad
While traditional banks only offer Buy and Sell exchange rates, Revolut uses an interbank exchange rate. This means you can withdraw money in local currency and avoid any currency conversion fees, including those that banks charge. Revolut also claims to keep card fraud at a low 0.01%, much lower than traditional banks. The app also allows you to freeze or unfreeze your card in seconds, which means you don’t need to worry about lost cards or stolen cards.
However, it is important to note that not all currencies are treated equally. Some currencies, including the Thai Baht and Russian Rubbles, carry a 1% fee. Otherwise, it’s free to withdraw cash in most other currencies. Revolut does have a limit on the number of withdrawals for which you’re allowed free of charge. The maximum amount that can be withdrawn without paying a fee is 5000 GBP (1250 CHF). If you exceed this limit, you’ll have to pay a 0.5% fee.
Once you’ve reached the destination country, you’ll be prompted to use your local currency. You will then be prompted to choose a card for the money transfer. You can either use the credit card you’re using at home or send the money to a Revolut account overseas. The money will be transferred to your Revolut account within a day or two.
It charges for foreign transactions
When transferring money internationally, Revolut charges a fee of 1% to 2% of the amount you send or receive. This fee is aimed at covering the costs of dealing with unusual currencies and the uncertainty of making an exchange while the markets are closed. Additionally, Revolut charges a 0.5% fair use fee and a one-to-two-percent markup on the interbank exchange rate.
Signing up for Revolut is easy and can be completed within minutes. All you have to do is provide your name, date of birth, address, and contact details. You will then receive a verification code via text message. The company is licensed and regulated in several countries, including Australia, the UK, and Europe. For example, it holds an Australian Financial Services Licence issued by a different bank and is regulated by the Australian Securities and Investment Commission.
Revolut has a mobile app that is widely praised. It has over 413,000 ratings on the App Store and is considered highly user-friendly. Compared to Wise, Revolut is easier to navigate. Wise also offers a website and a smartphone app. Unlike Revolut, Wise has had time to fine-tune its services and offers a guaranteed rate for international money transfers.