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 included in the rate that Travelex uses.
The interbank rate, on the other hand, tracks the real-time value of currencies and is considered the fairest rate in the industry. It fluctuates throughout the day, and is the rate that Currensea uses, with an additional 0.5% markup.
Since it is a prepaid card, Travelex won't charge you any transaction fees while spending abroad if you use the correct currency for the country you're in. However, you will be charged a rate of around 2% to convert in the first place. If you top up in pounds and then convert afterwards, you'll also face a 2% 'pound top up fee' beforehand.
If you spend abroad in a currency which you don't currently hold in your wallet, or isn't supported by Travelex, you'll incur a 5.75% foreign exchange fee. Given they only support 22 out of 180 currencies, there is a significant risk you'll be hit with this rate. So if you topped up in pounds then just spent in USD on your holiday without first "converting" for another 2% charge, you could find yourself paying 7.75% for the privilege.
Travelex also have a £3000 spending limit each day- so if you stay in an expensive hotel, you may be unable to pay at the end of your stay and have to use your regular bank card with associated charges.
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 Travelex Money Card.
What Currensea offers is a product focused on providing you with the best possible rates as you spend abroad. Our card partners directly with your trusted bank account (unlike other travel cards), meaning that 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, 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 and where 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 Travelex on a 10 day holiday to Florida for a family of four. With a combination of card and cash spending, we found that using a Currensea card can save you just over of £120 on FX fees compared to Travelex.
Take a look at the table to see the breakdown of spend- we've also included the card scheme rate that Travelex charges.
Currensea charges | Travelex charges | |
$10,000 on card spending | £39.06 | £156.24 |
$600 on ATM withdrawals | £2.34 | £9.37 |
TOTAL | £41.40 | £165.61 |
Total saved with Currensea vs using Travelex: £124.41
% saved with Currensea vs using Travelex: 75%
However, if you are looking for great rates, then Currensea is the better choice. We've been relatively generous to Travelex in the example above and assumed you solely spend in the currency you top up with- in which case you'll typically only be charged 2% for the initial conversion. However, while this is similar to other pre-paid cards, it is still four times as much as Currensea charges.
On the other hand, you could have topped up in pounds and converted afterwards, in which case Travelex will charge you an additional 2% 'pound top up fee', meaning you'll be charged a total of 4%. And even worse, if you forget to convert and spend in a currency which you don't currently hold, or isn't supported by Travelex, you'll incur a 5.75% foreign exchange fee. Given they only support 22 out of 180 currencies, there is a significant risk you'll be hit with this rate. So if you topped up in pounds and then spent in USD on your holiday without first "converting" for another 2% charge, you could find yourself paying 7.75%.
Since it is a prepaid card, you'll need to remember how much is on it and faff around topping it up as you spend abroad. And if you don't spend all the money you top it up with, you'll also have to remember to take the unspent balance off your card when you get home, incurring yet more charges. On average in the UK in 2023, prepay travel card users returned home with £78 on their card...
With Currensea, you can spend abroad just as you would at home with your regular debit card, since your card partners with your existing bank account. We charge the real-time interbank rate with a markup of just 0.5%, meaning that you'll typically save four times as much as you would do with Travelex no matter when or how you spend. We offer travel, but without the hassle.
Overall, if you want a card you don't have to continually top up that focuses on providing the best rates possible, then Currensea is the right choice for you.
Currensea Limited is registered in England and Wales (No. 11413946), authorised by the Financial Conduct Authority (Reference No. 843507) and is a Principal Member of Mastercard. We are registered with the Information Commissioner's Office (Registration No. ZA524676).
© Currensea Limited 2022