The card scheme foreign exchange rate is set each day by major credit card networks such as Visa and Mastercard.
While the value of currencies fluctuates throughout the day, the card scheme rate stays the same for the whole day. The rate will contain a mark-up to protect the card schemes from fluctuation risks. It’s difficult to figure out exactly how this rate is calculated as the information isn't shared, but this is the rate that Halifax uses.
The interbank rate on the other hand, tracks the real-time value of currencies and is considered as the fairest rate in the industry. It fluctuates throughout the day, and is the rate that Currensea uses, with an additional 0.5% markup.
We don’t believe fees should ever be hidden - so we’ve done the calculations for you.
Using data from July to September 2024, we were able to calculate the average markup over the interbank rate applied to the card scheme rates. We did this by comparing those rates with the average highs and lows of the daily interbank rate, using a selection of the most popular travel currencies. On average, the markup built into the card scheme rate was 0.58% for Mastercard and 0.52% for Visa- since Halifax uses Mastercard, this means that you're typically being charged 0.58% above the interbank rate when you use their card to spend abroad.
Currensea is a travel debit card that allows you to spend money directly from your trusted bank account, rather than having to open up a new one or top up a prepaid card. It is based on open banking, which was introduced several years ago to promote innovation and competition in financial services so that you have access to a wider range of options and rates.
Currensea has three travel cards, including Currensea Premium and Currensea Elite. For the purposes of this comparison, we'll be focusing on Currensea Essential, which is free like the Clarity Credit Card.
What Currensea offers is a card that partners directly with your trusted bank account. That means you can spend with your Currensea card abroad just as you would at home with your regular debit card. Funds come straight out of your bank account, and you can spend whatever balance you have.
Because it’s not a prepaid card (like some travel cards), you never have to top up your Currensea card. You don’t have to worry about losing it and any funds that might remain on it, nor do you have to constantly top it up and remember how much you have on it: we offer travel, but without the hassle.
We also check how much your bank would have charged you to use your regular debit card abroad- and we can tell you exactly how much money you saved by using your Currensea card.
We convert your currency based on the real-time interbank exchange rate, with an additional markup of 0.5% per transaction no matter when you use it or how much you spend with it. No hidden fees, no weekend fees, no increases to the markup - just clear, transparent information on how much we charge and how much you save.
We charge our usual fee of 0.5% for withdrawals up to £500 a month, and for anything over this amount we charge 2%.
While your first card is free, we charge a £5 replacement fee (but no delivery fees).
We compared how much it would cost spending with Currensea versus Halifax on a 10 day holiday to Florida for a family of four. Take a look at the table to see the breakdown of spend- we've also included the card scheme rate that Halifax charges.
However, this does not include interest, which Halifax also charge depending on when you pay off your spending, or if you use an ATM.
| Currensea charges | Halifax charges | |
| $10,000 on card spending | £39.06 | £0* |
| $600 on ATM withdrawals | £2.34 | £16.84** |
| Card scheme rate | £0 | £48.03 |
| TOTAL | £41.40 | £64.87 |
*This does not include interest
** Assume a typical bank debit card is used given the major cost and drawbacks of using a credit card at an ATM
Total saved with Currensea vs using Halifax Clarity: £23.47
% saved with Currensea vs using Halifax Clarity: 36.18%
Halifax and Currensea are fairly similar when it comes to fees for typical spend. Both products offer competitive rates that significantly undercut those offered by high street banks, and whichever product you choose there is no doubt that you'll save a significant amount when spending abroad.
However, given the prohibitive impact of using a credit card for ATM's, then you're either going to be using your regular bank card, or taking out yet another bank account just minimise those fees. So the end result is either going to be expensive, or a lot of hassle.
If you are after the best foreign exchange rates possible, then Currensea also has the edge marginally on everyday (non-ATM) spend. Although Halifax uses the Mastercard card scheme rate, this includes a 0.58% markup over the interbank rate. We offer the real-time interbank rate with a markup of just 0.5%, meaning our rates are slightly lower. It's pretty marginal though, so we would never advocate basing a decision on that alone.