Traveling internationally has never been easier, but managing your finances while on the go can still pose challenges, particularly with currency conversions and unexpected fees. Enter financial technology apps like Revolut. But is using Revolut abroad really free? Let’s explore.
What is Revolut?
Revolut is a fintech company that offers various banking services, including currency exchange, debit cards, cryptocurrency trading, and budgeting tools, all through its app. Launched in 2015, Revolut has become especially popular among travelers and expatriates due to its low fees and competitive exchange rates.
Understanding Revolute’s Pricing Structure
To determine whether Revolut is free to use abroad, it’s essential to understand its pricing model. Revolut operates on a freemium basis, offering different account tiers with various features:
Standard Plan: This no-cost plan allows users to hold and exchange multiple currencies up to a specified limit each month without extra fees.
Plus Plan: For a small monthly fee, this plan provides added features like insurance and increased exchange limits.
Premium Plan: This option, with a higher monthly fee, includes even more benefits such as travel insurance and unlimited foreign exchange.
Metal Plan: The highest tier, offering all premium features, along with cashback on purchases and unique card designs.
Currency Exchange Rates and Fees
One of Revolut’s main advantages when traveling is its competitive currency exchange rates. Generally, Revolut offers an interbank exchange rate, which is superior to what you’ll find at traditional banks or currency exchange services. However, there are important considerations:
Weekend Rates: During weekends, when forex markets are closed, Revolut adds a markup on currency exchanges. This surcharge can vary between 0.5% to 2%, depending on the currency pair.
Exchange Limits: The Standard Plan has a monthly limit on currency exchanges at the interbank rate (currently set at £1,000 or equivalent). Exceeding this limit incurs a fee of 0.5%.
Using Your Revolut Card Abroad
Spending in Local Currency
When you use your Revolut card abroad, opting to pay in the local currency is highly beneficial. This helps you avoid additional foreign transaction fees that traditional banks often charge. Simply swipe or tap your card, and you’ll receive the best available exchange rate at that moment.
Cash Withdrawals
Should you need cash while traveling, you can withdraw money from ATMs using your Revolut card. Here are some important details:
Withdrawal Limits: With the Standard Plan, you can withdraw up to £200 (or equivalent) per month without incurring fees. After this limit, a 2% fee applies. Higher-tier plans have increased withdrawal limits.
ATM Fees: Some ATMs may impose their fees, which are beyond Revolut’s control. Always check before completing a withdrawal.
Is Revolut Truly Free to Use Abroad?
While Revolut promotes itself as a low-cost alternative to conventional banking, it isn’t entirely free for international use. Here are scenarios where fees might apply:
Currency Exchange Limits: Exceeding your monthly exchange limit results in fees on additional transactions.
Weekend Markups: The added cost for weekend exchanges can catch you off guard.
ATM Withdrawals: Going beyond the free withdrawal limit incurs fees, and ATM operators may also charge fees.
Card Replacement: If your card is lost or stolen abroad, there may be a replacement fee.
Premium Features: Higher-tier plans and additional services, like travel insurance, come with their subscription fees.
Pros and Cons of Using Revolut Abroad
Pros
Low Exchange Rates: Access to interbank rates is a key advantage.
No Foreign Transaction Fees: Paying in local currency helps you avoid extra charges.
Budgeting Tools: The app includes features to help you track your spending.
Multi-Currency Accounts: You can hold and exchange various currencies directly within the app.
Cons
Limited Free Withdrawals: Frequent cash needs may lead to withdrawal fees.
Weekend Markups: Currency exchanges on weekends can be less favorable.
Potential Fees for Exceeding Limits: Standard users need to be cautious about their limits to avoid additional charges.
Tips for Using Revolut Abroad
Plan Currency Exchanges: If you anticipate exchanging significant amounts, do it on weekdays to avoid weekend fees.
Monitor Your Limits: Keep track of your monthly limits for currency exchanges and cash withdrawals to avoid unexpected charges.
Use the App for Budgeting: Leverage Revolut’s budgeting tools to manage your travel spending effectively.
Enable Travel Mode: This feature allows you to set your location, ensuring your card works seamlessly abroad.
Stay Updated: Regularly check the app for any updates on fees or policies.
Conclusion
Revolut offers a modern solution for managing finances while traveling abroad, but it’s not completely free. Its competitive exchange rates and absence of foreign transaction fees make it an appealing option for many travelers. However, being aware of fees, limits, and features is essential for maximizing your Revolut experience. With some planning and smart use of the app, you can minimize costs and enjoy your travels without the stress of currency conversions and hidden charges.
FAQs:-
1. Is Revolut free to use abroad?
Revolut offers fee-free transactions in over 150 currencies at the interbank exchange rate during the weekdays. However, there are fees for certain transactions, especially on weekends, and for specific features like international transfers outside the standard limits depending on your plan.
2. Are there any hidden fees when using Revolut abroad?
While Revolut promotes fee-free usage, be aware that:
Weekend Markup: Transactions made during weekends incur a fee (typically 0.5% to 2% depending on the currency).
ATM Withdrawals: You can withdraw up to £200 (or equivalent) per month for free, but thereafter, a 2% fee applies.
Currency Exchange Limits: Free exchanges are capped based on your plan. Premium and Metal users have higher limits.
3. How does Revolut’s currency exchange work abroad?
Revolut allows you to hold, exchange, and spend in multiple currencies. When you exchange money within your app on weekdays, you get the interbank exchange rate without additional fees. Make sure to exchange before your trip to maximize savings.
4. What currencies can I use with Revolut abroad?
Revolut supports over 150 currencies, allowing you to spend globally without the need for physical cash. You can also send and receive money in different currencies seamlessly.
5. Can I use my Revolut card everywhere abroad?
Yes, Revolut cards can be used wherever Mastercard or Visa is accepted. This includes online and in-store transactions. Just ensure your card is activated and you have funds loaded in the required currency.
6. Is there a limit to how much I can spend abroad with Revolut?
There is no set limit on spending, but your account may be subject to daily withdrawal limits based on your plan. It’s advisable to check your plan’s specifics within the app.
7. How do I avoid fees while using Revolut abroad?
To minimize fees:
Plan your transactions for weekdays to avoid weekend markups.
Stay within your free ATM withdrawal limit.
Upgrade to a Premium or Metal plan if you frequently travel for higher limits and additional benefits.
8. What happens if I lose my Revolut card while abroad?
If you lose your card, you can freeze it instantly through the Revolut app. You can then order a replacement card, often with expedited shipping, to continue using your account.
9. Does Revolut offer travel insurance?
Yes, Revolut provides travel insurance options with its Premium and Metal plans. This coverage can include medical expenses, trip cancellations, and more, making it a useful feature for travelers.
10. Can I send money internationally with Revolut while abroad?
Absolutely! You can send money internationally at the interbank exchange rate. Note that certain limits may apply based on your subscription tier.
11. Is customer support available when using Revolut abroad?
Yes, Revolut offers in-app customer support, which is accessible worldwide. You can also access FAQs and help articles directly in the app.
12. What should I do if I encounter issues while using Revolut abroad?
If you face issues, you can use the in-app support chat to resolve any problems. Revolut also has an extensive help center with articles that might address your concerns.
13. Can I use Revolut in non-European countries?
Yes, Revolut works globally. You can use your card and app features in any country where Mastercard or Visa is accepted.
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