Get Curve Pay
← Back to blog
6 March 2025
Mastercard exchange rate

What is the Mastercard Exchange Rate?

When you make a purchase in a foreign currency with a Mastercard, the exchange rate applied to your transaction is set by Mastercard. Unlike traditional banks, which may impose additional fees or markups, Mastercard provides a competitive rate that is updated daily based on interbank currency market fluctuations.

How the Mastercard Exchange Rate is Determined

  1. Real-Time Market Data – Mastercard updates exchange rates daily, reflecting changes in global currency markets.

  2. Interbank Exchange Rate Influence – The rate used is typically close to the interbank rate (the rate banks use when trading large sums of currency).

  3. Processing Date vs. Transaction Date – The exchange rate applied to your transaction is the rate on the day your transaction is processed, not necessarily the day you made the purchase.

Does the Mastercard Exchange Rate Match Google’s Rate?

Many consumers check Google for exchange rates before making international purchases. However, the rate displayed on Google (often from sources like XE.com or Reuters) is the mid-market rate, also known as the interbank rate. This is the purest form of exchange rate before financial institutions add their markups.

Key Differences:

Source Rate Type Markup?
Google (Mid-Market Rate) Interbank rate ❌ No markup
Mastercard Rate Market-based daily rate 🔄 Slight variation
Bank-Issued Rate Includes markup ⚠️ 0.5% - 5% markup!

Mastercard’s exchange rate is typically very close to the Google rate but may be slightly different due to real-time fluctuations and processing costs. However, unlike many banks, Mastercard does not add hidden markups to its exchange rate.

The Hidden Costs of Using a Bank for Foreign Transactions

1. Foreign Transaction Fees (1% - 3%)

Many traditional banks charge a foreign transaction fee on top of the exchange rate. This is a percentage of the total amount spent in a foreign currency, typically 1% to 3% per transaction.

2. Hidden Exchange Rate Markup (0.5% - 5%)

Most banks do not use the Mastercard or mid-market rate; instead, they apply their own exchange rate, which is adjusted to include a profit margin. This means that you may be unknowingly paying an additional 0.5% to 5% every time you spend abroad.

3. ATM Withdrawal Fees (£3 - £5 per transaction)

Withdrawing cash abroad using a debit or credit card often incurs:

  • A flat fee (e.g., £3 per withdrawal)

  • A foreign exchange fee (usually 2% - 3%)

  • A bad exchange rate with an extra bank markup

How Curve Eliminates Foreign Exchange Fees

If you’re looking for the best way to spend abroad, using Curve instead of a traditional bank card can save you money in multiple ways.

✅ Benefit 1: Mastercard Exchange Rate with No Markups

Curve uses Mastercard’s real exchange rate without the hidden markups that most banks apply. That means you’re getting the best available rate when converting currencies.

✅ Benefit 2: Zero FX Fees on Weekdays

Unlike traditional banks that charge a 1%-3% FX fee, Curve users pay 0% FX fees on weekdays.

✅ Benefit 3: Small Weekend Markup (0.5%-2%)

Since global currency markets close over the weekend, Curve applies a small fee to protect against currency fluctuations:

  • Major Currencies (EUR, USD, GBP, etc.): 0.5%

  • Less Common Currencies: 1.5%-2%

Even with this small weekend fee, Curve remains cheaper than most banks and currency exchange kiosks.

✅ Benefit 4: Free ATM Withdrawals Abroad

Curve offers fee-free foreign ATM withdrawals up to a certain limit (depending on your Curve plan):

  • Curve Free: £200/month

  • Curve X: £200/month

  • Curve Black: £400/month

  • Curve Metal: £600/month

✅ Benefit 5: Spend from Any Account & Avoid Dynamic Currency Conversion (DCC)

Many merchants abroad try to charge you in your home currency instead of the local currency, which results in worse exchange rates and extra fees (this is called Dynamic Currency Conversion - DCC). With Curve:

  • Always pay in the local currency to avoid DCC scams.

  • Choose which bank account or card you want to charge, even after making a payment (Go Back in Time® feature).

Comparison: Curve vs. Traditional Bank Cards

Feature Curve Traditional Bank Cards
Uses Mastercard Rate ✅ Yes ❌ No (Markup applied)
FX Fee on Weekdays ❌ 0% ⚠️ 1%-3%
FX Fee on Weekends ⚠️ 0.5%-2% ⚠️ 1%-3%
Hidden Exchange Rate Markup ❌ No ❌ Yes (0.5%-5%)
ATM Withdrawal Fees ✅ Free up to limits ❌ £3-£5 per withdrawal + FX fees
Avoids Dynamic Currency Conversion (DCC) ✅ Yes ❌ No

How to Use Curve for the Best Exchange Rate

  1. Download Curve & Add Your Cards – Link your debit and credit cards to Curve for seamless international spending.

  2. Always Pay in the Local Currency – Avoid Dynamic Currency Conversion (DCC) by selecting the local currency.

  3. Use Curve on Weekdays for 0% FX Fees – If traveling over the weekend, consider withdrawing some cash beforehand.

  4. Withdraw Cash Abroad Without Fees – Stay within your monthly free withdrawal limits.

  5. Track Your Spending in One App – Get real-time notifications and insights on all your purchases.

Final Thoughts: Why Curve is the Best Choice for Spending Abroad

If you’re tired of hidden bank fees and poor exchange rates, Curve is the ultimate travel card that ensures you get the best Mastercard exchange rate without the unnecessary charges. With zero FX fees on weekdays, fee-free ATM withdrawals, and Mastercard’s real exchange rate, Curve offers a smarter way to spend abroad.

✈️ Ready to save money when traveling?

Blog CTA (3).webp

Get Curve Pay