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Why I tried Revolut on my trip to New York – but should you?

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This is my review of the Revolut payment card.  Is it worth getting to save money on FX fees when you spend money abroad?

My purse does not contain any credit or debit cards that charge no foreign exchange fees.  I know that I should have tackled this issue way sooner as I’ve wasted money on unnecessary FX fees in the past. Last month, with my New York trip coming up, I needed a quick solution.

Why did I try Revolut?  Well, the honest answer to this question is that a friend, who works as cabin crew for British Airways, told me over a bottle of wine that it was a payment card (a reloadable Mastercard debit card) without any foreign exchange fees and she had been using one very successfully.

Revolut review

That said, Rob isn’t a fan of pre-paid cards such as Revolut (and Monzo, and Starling, and WeSwap), which is why he’s never covered it in the past.  As he wrote in the HFP comments section to a reader a few weeks ago:

“I don’t want to be fiddling around topping up a card and worrying about my balance every time I want to buy something.  You might as well get a free credit card with 0% foreign exchange fees – such as the Virgin Money Travel Credit Card – which would get you up to 56 days credit and lets you pay the bill for your foreign spend with your normal credit card bill. Why make life hard for yourself?”

But what does he know?! Here is what I found:

What is Revolut?

Revolut is an app that works as a digital wallet for British Pounds, Euros and US Dollars (amongst other currencies) letting you transfer money for free to friends or businesses.

An app isn’t any use in a shop, however.  To use it in the real world, you need to order a physical card – branded as a Mastercard – which will give you 0% FX fees on your spending and money withdrawals abroad.

Revolut quotes a number of different figures about the currencies it uses.  This is how I understand it:

You can physically hold a balance on the app in 16 currencies – USD, GBP, EUR, PLN, CHF, DKK, NOK, SEK, RON, SGD, HKD, AUD, NZD, TRY, ILS or ZAR.  These are the only currencies you can pre-purchase and lock in an exchange rate in advance of your trip.

You can transfer money electronically in 26 different currencies.  If the currency isn’t on the list above, it will be exchanged at the spot rate from another balance.

You can spend money in 120 currencies.  If the currency isn’t on the list above, eg Thai Baht, Revolut converts it at spot rate and deducts it from another balance.

The company was founded in 2015 and has just raised $66m in a Series B funding allowing for more features to be added, with the goal of turning it into a fully fledged bank.  If you were wondering how it makes money charging 0% FX fees, the answer is “it doesn’t”.  The company announced a pre-tax loss of £7.1 in 2016 on just £2m of revenue.

How do I open a Revolut account?

You must be at least 18 years old to apply.

Firstly you need to open App Store or Google Play and download the Revolut app. You can also sign up on the Revolut website here.

You need to verify the account with your phone number and can start adding money from your bank account or using a credit card (Mastercard or VISA).

If you want a physical card, and if you’re planning to use Revolut for payments abroad you will need the card, you can order one via the app. This usually costs £5 but we have a special deal with Revolut for our readers.

If you order via our Revolut link here, you will get the physical card free of charge.

Insert your mobile number and click on the URL Revolut will send to your phone. This will open the Google Play or Apple App Store.  Download the app, open it and create an account, which takes 30 seconds.

You need to top up £10 before you can select and order your free card (standard delivery).  Verify your identity (tap more -> profile -> verify identity) and your card will be with you in a few days.   If you want express delivery you do need to pay for this (£12) so stick with standard delivery, which saves you £5 via our link.

You need to verify your identity with your passport, driving licence or ID card if you want to spend more than a total of £500 with your Revolut card.

As well as the UK, you can also get a Revolut card if you live in:  Aland Islands, Austria, Azores, Belgium, Bulgaria, Canary Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, French Guiana, Germany, Gibraltar, Greece, Guadeloupe, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Martinique, Mayotte, Netherlands, Norway, Poland, Portugal, Réunion, Romania, Saint Helena, Slovakia, Slovenia, Spain, St. Martin or Sweden.

How does Revolut work?

You can top up your Revolut account by bank transfer, debit or credit card.  There is a 1% fee for credit card top ups.

My TSB credit card treats Revolut top-ups as a ‘purchase’.  Comment online suggest that some credit cards treat Revolut as a cash advance (no points, cash fee) and others as a purchase (would earn points, no fee).  There could be potential here for ‘purchasing’ frequent flyer miles relatively cheaply if you had a very high earning Visa or Mastercard such as the Virgin Atlantic Rewards card although I haven’t tested Revolut with one of those.

The money will sit in your Revolut account in the currency you’ve topped up but you can move it in between your different currency accounts at the current spot exchange rate.  If you have a bank account in the UK, are travelling to the US in a couple of weeks and the current exchange rate feels exceptionally good, you could exchange your money in advance to avoid a possibly worse exchange rate later.  This works for the 16 currencies I listed above.

What does the Revolut app look like?

Below is a screenshot of the home screen.

Revolut screenshot

As well as showing your British Pounds, Euro and US Dollar balances, the home screen shows your last transactions.  Remember that Revolut can hold a balance in 16 currencies in total, not just these three.

At the bottom are further options: Accounts, Analytics, Transfer Options and Cards.

Spending money on Revolut

The main reason I decided to try Revolut was to use it in stores and restaurants in New York without paying FX fees.

Let’s get the annoying bit out of the way first:  you pretty much need to know how much you will be spending before leaving the house / hotel / wifi zone, in order to ensure your Revolut card has a high enough balance.  Outside Europe, you could be hit with a hefty mobile bill if you had to turn on data roaming just to top up your card.

Every store and restaurant accepted my card and I had no issues paying.

Sending money with Revolut

After my New York trip I had £119.05 left on my Revolut card.  As it’s stupid to have money sitting on a card that doesn’t pay you interest – and probably helps the company make money with your money – I wanted to transfer the money back into my bank account.

I had to set myself up as a beneficiary by entering my bank details manually and was then able to select the amount of money I wanted to transfer. I got a notification that I’d receive my money the same day and within less than an hour the money was in my current account.

As well as paying money back into your own account you can also pay another person or a business with your Revolut app. Simply add the bank details and your money will be transferred.

Your Revolut account can also double as a regular UK and/or Euro bank account.  Your card has its own sort code and account number.  This is how the company sees the product developing.  They hope that you will pay your salary into your Revolut account, use the card for all of your spending at home or abroad and also pay your bills with it.

The travel benefits being used to sell the card now are a loss leader to get you on board in order to offer you full banking later on, backed by the $66m they just raised.  Revolut already offers personal loans at a high 9.9% APR, with the money dropped instantly onto your card.

What else should you know?

Revolut isn’t really free, although you are able to avoid all of the costs if you are savvy.

The £5 postage fee to order your plastic card is waived if you use our links on this page (which is a link that Revolut has made available to a lot of travel sites for their readers).

In theory all you need to do is top up your money and use Revolut as a normal payment card. It will exchange the currency automatically without adding fees.

At the weekend Revolut uses the exchange rate from Friday and adds a mark up depending on the currency, usually 0.5%.  If you want genuinely free transfers, make sure you do them between Monday and Friday.

Free cash withdrawals are limited to £200 per month.  After that you pay 2%.

For very heavy users, even spending on the card is not free.  There is fee of 0.5% when you spend over £5,000 in any one month.

Here is an overview of the charges:

A spare Revolut card costs £5 + £5 delivery fee

Transfers to friends or businesses take two business days – you must pay £5 to get the money across in one business day

Transactions of up to £5,000 per month are free, thereafter the fee is 0.5%

At the weekend Revolut uses the exchange rate from Friday 23:59 and adds, for most currencies, a 0.5% mark up

Three currencies DO incur a fee when spending – Thai Baht (1.5%), Russian Ruble (1.5%), Ukrainian Hryvnia (1%)

You can withdraw up to £200 per month from an ATM without paying a fee, but you pay 2% after that

To increase the ATM limit to £400 per month, you need to pay £6.99 fee each month to become a ‘Premium’ cardholder.  Premium cardholders also avoid the £5,000 per month cap on transactions.

Conclusion – is Revolut worth it?

My only alternative to Revolut on my New York trip would have been my American Express Preferred Rewards Gold charge card with a 3% FX fee.  Even though I would have earned 2 Membership Rewards points per £1 spent (foreign transactions earn double points) the Revolut option was still cheaper, assuming I value a Membership Rewards point at 1p.

(If you don’t know much about the American Express Preferred Rewards Gold card, take a look at this article we wrote.  You get 20,000 Membership Rewards points – worth £100 of shopping vouchers or many other things – for spending £3,000 within 90 days.  The card is free for the first year and you get two free airport lounge passes.  You can cancel at any point before the fee for the 2nd year comes around.)

Using Revolut instead of a credit card doesn’t hurt your credit record which is a good thing.  Taking out a 0% credit card purely to use abroad may make it harder to get other credit cards unless you ask for a very low limit.

Obviously the FX rates are great and if you don’t mind the hassle of having to top up your money via an app in order to use the card, Revolut is a good solution when travelling abroad.

However,there are other options.  Curve is a hybrid solution – you pay a 1% FX fee on purchases abroad but the transaction is recharged to any other Visa or Mastercard which could earn you up to 1% in rewards. (Curve is free and you will be paid £5 for trying it.)

I will definitely keep my Revolut card as it’s very useful if I have to send money back home to Germany (I had to pay a fee of £10 last time I did this thanks to Lloyds) and for now I will put up with the need to keep topping up and transferring money back.

Long term I think I will look into Currensea, which is free and charges overseas purchases directly to your bank account, taking only a 0.5% FX fee.

The Revolut website is here.  This link will waive the £5 delivery fee for the plastic card if you follow the instructions above, topping it up with £10.


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Comments (206)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Mike says:

    I like Revolut but not for the reasons in this post. The big advantage,to me, is the ability to move money at the interbank rate with not fees (less than 5k a month). I use this to move funds from my GBP accounts in the UK to my US based USD checking account which in turn allows me to pay my US CC Bill. In the scenario in the post I would have used my HSBC Premier World Mastercard and Revolut would have had a role in moving money to pay the bill later.

  • Lewis says:

    I use revolut every single time I travel. Personally I think it’s fantastic. Few reasons:

    1. Decline rate is next to 0, never had any problems
    2. Splitting bills feature is so easy to use if partner also had a revolut account. Makes things really easy after dining out for example
    3. Coupled with Three’s feel at home service you can keep topping up as you need and have real time spending data
    4. There is an auto-topup feature if you’re out of data – so you never have to worry about not having enough cash
    5. Using my Tesco Clubcard credit card I get a few points for 1% fee, and I get to figure out the money at a later point rather that worrying if my current account has enough to cover it

    Personally I love revolut, and most countries I travel to don’t really need much cash so the ATM fees don’t really bother me

    • TT says:

      Please tell me ” partner” is a business partner and not your other half? Cause splitting a bill with the other half after food is not something you want to admit to on this forum! lol…

      • Relaxo says:

        A polyamorous life can get pricey though….

      • Genghis says:

        From speaking to colleagues who are married, quite a few still have separate bank accounts (so partner doesn’t find out bonus amount). I find it all a bit weird.

        • Rob says:

          Why? We have always kept separate bank accounts, it never crossed our minds to get a combined one. I can honestly say we’ve never even discussed it.

          That said, my wife tends to put ‘non essential’ personal spending on her own credit card (clothing, hair etc) which is debited from her account. The rest goes on a supplementary card on one of my cards, which means I end up paying the food bill. This is purely political though, so that when I go ‘HOW MUCH?!’ to the latest item of clothing to appear she can say ‘I bought it with my money …..’.

          • Genghis says:

            You’re married. Everything is half-half anyway. I manage the finances in our relationship so all money goes into an account I have control over. I pay all bills and my wife buys whatever she wants on the cards I put in her purse. Different strokes for different folks I guess.

          • Lewis says:

            Yep, never crossed our minds to get a joint account. Both split house stuff, anything else we fancy is personal spend. Works well for us!

          • Alan says:

            To my mind the weird bit is more the partner doing it to hide their bonus amount! (well both for having bonuses at all, not something I’m used to, but also with the concept of hiding the bonus from their partner!)

          • Rob says:

            This is relatively normal in the City. We had staff who would have some of their bonus paid into offshore accounts (tax was still paid because it was PAYE). If you don’t actually plan to spend the money, and given the 50/50 chance of divorce (and the fact that the courts have decided that even 1-year, no kids, marriages must be 50/50), it is relatively sensible strategy on the face of it. Few wives would think of asking the court to force their ex’s employer to detail all pay from the last decade ….

          • Alan says:

            Wow – pretty depressing stuff!

          • Rob says:

            … as is handing over 50% of your net worth – plus a lifetime of future income support if they do not remarry (cohabiting is ok) – to someone who divorces you after a 1-year, no kids marriage!

          • Alan says:

            Sounds like they should have got a pre-nup… 😉

        • Leo says:

          Having been a divorce lawyer in my time (not now I hasten to add) I find it very odd that professional married couples would not have individual accounts. A joint account for household expenses yes – but not maintaining individual accounts? Bizarre.

          • Genghis says:

            @Leo I’m genuinely interested. Why? If my wife and I ended up splitting up, assets and liabilities would be 50:50 anyway right? We each have similar spending patterns so that is not an issue.

        • HAM76 says:

          Maybe things are really different in the UK. In Germany only what you gain during marriage is split at 50/50. Also, splitting is only relevant during a divorce. We have split accounts as I have a business. My wife’s accounts are not accessible at all to anyone I owe money, as long as my wife doesn’t co-sign. My wife isn’t liable for my debt.

          It would be insane to have a joint account. There would only be disadvantages.

    • Relaxo says:

      Bump. Never had a negative experience with them. Decreasing free cash withdrawal should be a non-issue for most people.

    • Genghis says:

      Are you not better off using a better credit card to top up? The times I’ve used it I’ve used the IHG Black Creation card. At least the 1% top up fee gets me close to 1% back in points or 3.5% if still in first £10k spend.

  • Paul Goffin says:

    I’ve been using revolut for the last year and have found it very good. The benefit for me is being able to lock in a good exchange rate when it happens. So before I travel I keep an eye on the exchange rate and if it surges in a favourable direction I can purchase some currency, either to withdraw as cash (better than any Travelex rate) or card purchases. Also great for transferring money to friends.
    It still has the odd glitch I haven’t experienced them first hand, but if you watch their twitter./Facebook feeds revolut detail when their systems have been done.

  • Steve says:

    Revolut was great at the start, but has since reduced in value for me due to the all the little schemes here and there to try and make some revenue from you. I still keep it and use it for when I make use of the free £200 cash for incidentals. I always found that there is little point in converting the currency within the app as the spot rate was always fine for me. I guess if you thought/knew that your destination currencly was going to be strong you should go ahead and convert.

    It is still a good solution for my daughter on her US trip in a months time as she has a fixed budget and no FX free credit card. Will exclusively use revolut for purchases, and will use the £200 free withdrawals in combination with cash she will take with her. Instant top ups and almost instant return of cash to your bank account is good. If she runs out of cash then 2% is not the worst by any means, however the US ATM will also add its own fee on top no doubt. Like Rob says though, great for kids as my daughter will testify (well she is 22 actaully)

    However, I do think I will completley forget about Revolut as it is getting difficult to keep track of all of the fees.

    Finally, “The hassle of topping up?” Really! On a scale of 1 to 10 with 10 being lots of hassle, topping up revolut is a 1, about as easy as things in an app gets.

    • Genghis says:

      If London based, the Best Foreign Exchange cable rates are v competitive

      • Trev says:

        And for the ~86% of the population who don’t live in London?

        • Genghis says:

          Dunno guv

          • HiDeHi says:

            I would be surprised if the London based headforpoints readership was not closer to 50% or more of their total readership.

          • Rob says:

            I would guess 20% non UK (which I know is correct), 50% London based for work or living, 30% other UK.

    • Rob says:

      … unless you’re in the US and not in a wi-fi zone, at which Vodafone whacks you for £5.

      • TGLoyalty says:

        Small Price to pay on a holiday to the USA which has probably cost north of £1000

      • Alan says:

        Interesting – was always a great benefit of Three (even if the data speeds were appalling), glad to see more operators considering this – really hate roaming fees and the hassle they cause!

  • Joe says:

    It doesn’t have to be expensive to use your phone in the US – Vodafone charge £5 a day to use your UK allowance in the US, including 4G (LTE) roaming, tethering, plus calls and texts to the UK and the country you’re in. Three let you use some plans there for free, but don’t include the US calls, tethering or 4G and in my experience heavily throttle the data, so I prefer to pay £5/day for Vodafone. Vodafone also offer the £5/day option in 60-countries including places like Japan and South Africa, which tend to be expensive to roam in using any other UK network – it’s a big part of the reason I stay with Vodafone. I don’t go abroad that often but hate not being able to use my phone when I am!

    I don’t like Revolut for the extra charging on weekends and use Monzo for cash myself, but note Monzo said in their 2017 annual report “Around 40% of the per-customer loss is due to international ATM usage outside the UK or EU, with a small minority of our user-base driving the majority of this cost. As a result, we will explore ways to reduce this cost in collaboration with our community… UK and EU ATM usage costs us much less, and we aim to keep this free” implying that ATM withdrawals outside the EU might not remain free. It’s also my understanding that they want to phase out the pre-paid card fairly quickly once their bank account is available to everyone.

    The one thing I find annoying about all the non-credit card ways to save on fees abroad is you generally can’t use them for certain things e.g. car rentals, and they tend not to work well for hotel card auths either. So in some ways I agree with Rob it’s just easier to have a credit card you can use for all (non-cash) purchases abroad.

    • Neil says:

      Yes, I saw that as well. Presumably a benefit of Starling is that its card is a debit card, so can be used for such things?

  • Jovanna says:

    Back home, a lot of businesses – out-of-the-way small shops and cafes – do not take plastic. I use Revolut for cash withdrawals. The reduction to the £200 per month limit for cash withdrawals was annoying.

    I find topping up this card through the app very easy – easier than transferring to my Halifax Clarity card. I don’t have a current account with the Halifax and it’s just a bit more faff transferring to the Clarity card. Any positive balances can be transferred back using faster payments.

    I’ve also just taken out a Monzo card because of the creeping restrictions on the Revolut card. Not used that yet.

    • Callum says:

      I can imagine it’s very easy in the app for Revolut, but you can make faster payments to your clarity card from anywhere. It literally takes me a few seconds to do.

    • Trev says:

      A £2400 yearly cash withdrawal limit would be better, that way people who only travel a couple of times a year would still be able to withdraw the same amount albeit within fewer months – maybe someone at Revolut will consider that…

  • Steve says:

    Strangely I find the card most useful while at home in the U.K.

    Having a fee free card to pay for internet purchases in whatever the local purchase currency is , instead of being screwed over by the shady credit card rates makes this card really handy.

    Also works well abroad, which helps.

  • Neil says:

    I have a relatively new Lloyds Avios card. What are people’s experiences of using this abroad? I didn’t have a problem in Spain recently, but am going to Latin America in a week or so and am worried about it being blocked because of fraud prevention. I think I have read on here that some people have had a problem because of this.

    In general, the Lloyds card has been fine for me so far, but I have had a problem with it being blocked because of fraud prevention (in the UK) for no good reason that I could see. Obviously, I will tell Lloyds that I am going abroad, though I feel I should not have to – so many banks do not require this anymore. One reason why I like Starling and Monzo is that I am not worried about this being an issue with them.

    • CV3V says:

      I use a mix of Lloyds Avios and Monzo. Never had a transaction with either card fail when abroad IF its in person, but if trying to do an online transaction whilst abroad id expect Lloyds Avios to fail on the first attempt while Lloyds then confirm its valid. That said, partners Avios card got declined a few times on last trip, and then started working again (whilst my Avios card still worked without issue, meaning i had to pay the restaurant bills!)

    • Paulm says:

      I’ve not had any transactions blocked on my lloyds card (or Halifax) so far, but not used in Latin America, mainly just US and Canada.

    • Alan says:

      Have had blocked transactions with Lloyds before. Last happened when in Estonia (Tallinn via Helsinki on the amazing AY fare!) – thankfully Lloyds sent me a text to confirm if I had made the transaction. Replied with a ‘yes’ (via free Three roaming) and worked fine a few minutes later.

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