Actual exchange rates received on no commision travel card (e.g. Halifax clarity)

mobena

I used my card abroad and then checked the actual rates I received on my statement, and compared with the actual market rate on that day as per xe historical charts, and I see a big difference (around 1.5%). Is this because Mastercard are also taking 1.5%?

eDicky

XE indicates the interbank rate of the moment, which is constantly fluctuating.

The MasterCard exchange rate is set for the preceding day, in general it reflects the average interbank rate of that day with a very slight plus or minus.

When you use any card (giving the straight MasterCard or Visa rate, or with a margin added) it is not until a couple of days or so later when the transaction is settled and gives a final figure on your account that the rate of that particular day is used for the conversion, and not the rate on the day of the actual transaction.

So, depending on how the rate has fluctuated in the intervening period, when the transaction is settled it will vary slightly one way or the other.

MasterCard rates don't vary as much as 1.5% from the interbank rate on any particular day.

mobena

Thanks for the reply. I don't know but I checked a range of days where the rate was fairly stable, and the rate I received was about 1.5% off (but not always sometimes it was as the xe rate).

heatherw_01

You can check the mastercard rates page for the rates.

https://www.mastercard.co.uk/en-gb/consumers/get-support/convert-currency.html