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Revolut Raises Foreign Exchange Fees: What You Need to Know

Jun 11, 2020
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The content in this page is intended for general information purposes only and does not constitute financial advice. If you have any questions about your personal circumstances, we recommend seeking professional and independent advice. Neither Revolut nor Monito are financial advisers.

If you use the popular finance app Revolut, you're probably a fan of its transparency and almost non-existent fees. That's all about to change. On June 10th, Revolut began rolling out emails to its customers announcing dramatic changes in pricing after August 12th: a significant decrease to the free exchange limit (from £5,000 to £1,000), a more considerable mark-up on weekend rates (from 0.50% to 1%), and a transfer fee of £0.50  after your first cross-border payment made outside your country/payment area (SEPA). 

Despite Revolut's recent valuation at $5.5 billion, the COVID-19 crisis has hit the neobank hard. Though the online bank offers a wide variety of services, it derives considerable revenue from the travel industry and saw a significant dip in daily users at the height of the crisis. This fee hike comes in the wake of a wave of layoffs, the departure of numerous executives, and an aggressive drive to push profitability as Revolut has set out to turn a profit by the end of 2020.

So What Does This Mean to You as a Revolut User? 

With Revolut's current pricing model, users can spend or exchange up to £5,000 in a foreign currency without incurring any fees on weekdays and only paying a 0.5% fee on weekends. As of August 12th, that 0.5% fee will kick in on weekdays once a £1,000 threshold is passed; the 0.5% weekend fee will become 1% and then pass to 1.5% once more than £1,000 has been spent. In addition, fair use limits and weekend surcharges may apply.

So imagine you've budgeted £2,500 for a five-day trip to France, Monday to Friday. With Revolut's current pricing model, you would be well below their spending limit, and because your trip takes place over a series of weekdays, you would pay £0 in fees. As of August 12th, that same trip would incur £7.50 in fees.

Now say you're planning a weekend trip to France instead. You've put £1,000 aside, and even though you're sticking to Revolut's limit, you must pay fees because it's the weekend. With their current model, that would be £5 in fees. With their new model, that doubles to £10. If you exceed Revolut's £1,000 limit, the fee will continue to go up (£25 if you spend £2,000 on weekends).

Please make sure to check the specifics for your country as different free-exempt exchange limits are being reported for different currencies. 

See how Revolut's pricing compares before and after its 12 August 2020 update:

* For all major currencies except THB and UAH

What Can Revolut Consumers Do?

Lucky for you, Revolut is not the only fintech that offers competitive pricing and fees for foreign currency transactions. Monito is here to help you find the best money transfer providers for you and your needs, which extends to multi-currency cards. 

Consider Upgrading to a Premium Account 

While Revolut has raised fees on standard accounts, pricing has not changed for their premium accounts. While upgrading previously didn't make sense unless you spent more than £6,400 in transfers every month, upgrading to a premium account now makes sense if you exchange more than £2,400 a month. Once you go beyond that amount, Revolut will charge you a 0.50% fee on each exchange (1.50% on weekends), which can quickly add up.

As always, be sure to review the terms and conditions of Revolut's paid plans carefully before upgrading.

Convert Currencies Ahead of Time 

Whether you have a Standard or Premium Revolut account, Revolut will charge you a 1% fee on exchanges made over the weekend. Consequently, a smart thing to do, whether you're sending money in another currency or planning a weekend trip abroad is to convert your money to your desired currency ahead of time in the Revolut app and then use your balance in the desired foreign currency during the weekend. 

Revolut vs N26 vs TransferWise vs Monese

See how Revolut compares to similar alternatives:

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