Tesco Exchange Rate: How to get a better FX rate every time

If you’ve ever checked the Tesco exchange rate, you might have noticed that it differs from the exchange rate you see on Google. That’s because Tesco, like most banks and currency exchange providers, add a markup to the interbank rate – the rate at which banks trade currencies among themselves.

What Is the Tesco Exchange Rate?

The Tesco exchange rate is the rate at which Tesco Bank exchange your money from one currency to another. This rate includes a markup over the interbank rate, meaning it is less favourable than the base rate you would see on financial websites or Google.

Tesco applies this markup to cover operational costs and profit. While the exact margin can fluctuate, it is typically between 2% and 4% above the interbank rate. This means that if the interbank rate for GBP to EUR is 1.1850, Tesco may offer around 1.1450 or lower, making your exchange more expensive.

Tesco Exchange Rate vs. Mastercard Exchange Rate

Unlike Tesco, Mastercard provides an exchange rate that is much closer to the interbank rate. When you make a transaction abroad using a Mastercard credit or debit card, Mastercard converts the currency at a rate with a minimal markup, often less than 0.5%, making it far more competitive than Tesco’s travel money rates.

Using a Tesco Bank credit card abroad comes with another drawback: a 2.75% foreign transaction fee on every non-GBP purchase. This means that even if you use your Tesco credit card overseas, you’re not only subject to a less favorable exchange rate but also an additional charge on every transaction.

How to Get the Mastercard Exchange Rate with Tesco Cards Using Curve

There is a way to bypass Tesco’s unfavorable exchange rate and foreign transaction fees without switching cards: Curve.

Curve is a smart digital wallet that allows you to link all your debit and credit cards to one single Curve card. When you use your Tesco credit card abroad via Curve, you get charged at the Mastercard exchange rate instead of Tesco’s higher rate. Even better, Curve eliminates the 2.75% foreign transaction fee that Tesco charges on every overseas purchase.

Why Use Curve for Foreign Transactions?

1. Access to the Mastercard Exchange Rate – Get a much fairer exchange rate without the hefty markup Tesco applies.

2. No More 2.75% Foreign Transaction Fees – Save money every time you spend abroad.

3. Use Any Debit or Credit Card Abroad – You don’t have to worry about which card to use overseas; just link it to Curve and enjoy fee-free spending.

4. Additional Cashback and Perks – Curve also offers cashback and other benefits, making it an even more attractive option.

The Tesco exchange rate includes a substantial markup over the interbank rate, making it less favorable for currency exchange and foreign purchases. Mastercard offers a much better rate, but Tesco Bank credit card users still face a 2.75% foreign transaction fee. By using Curve, you can enjoy the Mastercard exchange rate without hidden fees, ensuring you get the most out of your money when spending abroad. If you want to travel smart and avoid unnecessary charges, Curve is the perfect solution.

So, before you exchange your money or use your Tesco card abroad, consider how much you could save with Curve – your wallet will thank you!