The "Fee Free" Myth
Nearly all "fee free" bank accounts and credit cards use the card scheme rates which are set once a day by the card schemes - i.e., Mastercard and Visa. However, "fee free" might not be the big saving you think it is!
Since the Foreign Exchange ("FX") market rates, also known as the interbank or mid-market rates, are changing every few seconds, these card scheme rates are set with enough margin to protect against adverse market movements throughout the day.
What Does This Mean For Me?
This means that "fee free" isn't actually fee free at all. You're still paying a charge, it's just that these banks and credit card issuers aren't being transparent about it.
Based on data from April, May and June 2025 across 8 currency pairs, the average markup (which is essentially a fee) over the interbank rate was 0.72% for Mastercard and 0.66% for Visa. This varies throughout the day, depending on which direction the market moves, but on average that's how much you're actually being charged with a typical "fee free" account.
How does the Currensea Realtime Rate work?
For the 16 major currencies, the Currensea Realtime Rate is based on the interbank exchange rate and includes a 0.5% markup. For all other supported currencies, the Currensea Realtime Rate is based on the Mastercard exchange rate and includes the same 0.5% markup.
Where Can I See This Rate?
You can view our live rates at any time here: http://aadvantage.currensea.co.uk/rates