Go Back in Time for Fx Transactions

I had done few foreign currency transactions with Curve, and then used GBiT to move them to another card. I noticed that the amount refunded is lower than the amount charged on the 1st card.

I was under the impression that Curve does a “refund”, i.e. canceling the transaction on the 1st card and placing the same charge on the 2nd card.

Has anyone seem a similar issue?

I did it a couple of times with EUR/GBP and it always refunded exactly the same amount, so far.

I had raised a case with support and the response is as below:

“The difference you are seeing is due to the change in GBP-EUR exchange rate from Dec 18th to Dec 30th. We are not able to control this. All of these transactions were completed in GBP with your card set to GBP, so the exchange would have been completed by your underlying card issuer.”

So it seems like Curve doesn’t “refund” the 1st card similar to cancelling the transaction. Else, the refund amount would have matched the charged amount.

The amount in GBP was not the same?

I am trying to understand this answer by support. Were you spending in GBP on an underlying EUR denominated card that was set to GBP in the Curve app?

Yes, Paul. That’s correct - I had set the underlying EUR card to GBP when I made the payment.

I thought that when I did a GBiT, Curve would reverse the transaction on the 1st card and move the GBP charges to the 2nd card.

I think the key here is who made the conversion. If it was done by Curve, the amount should be exactly the same. And that happened to me when I used the GBIT with EUR/GBP.
But if the conversion was made by your bank the situation is different. That happened to me several times when my card issuer was i n charge of the conversion and I paid for example to Amazon and then I got a refund, the amount was never exactly the same.

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When this was your setting (spending in GBP on an EUR denominated underlying card that was set to GBP in the Curve app) it is completely understandable that the EUR amount that was spent is different than the amount that was refunded (when using GBiT). This is because not Curve, but your underlying card is doing the currency conversion. Curve is charging your underlying card in GBP and doesn’t even know how much your underlying card is charging you in EUR. Also the refund will be done by Curve in GBP and again Curve does not have a clue how much EUR you will be given by your underlying card.

May I ask why you chose for this setting? By choosing this setting your underlying EUR card is doing the conversion and not Curve. This is only to your advantage when your underlying card offers a better conversion rate than Curve (for example when this underlying card is a Travelcard and/or in the weekend when Curve charges a weekend mark-up).

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This practice works perfect with revolut
Because it have multi currency account

But for a standard bank card, it probably not a good idea

Curve is charging your underlying card in GBP and doesn’t even know how much your underlying card is charging you in EUR. Also the refund will be done by Curve in GBP and again Curve does not have a clue how much EUR you will be given by your underlying card.

I had thought GBiT worked like a normal refund, i.e. for e.g. if you bought something in Fx and then cancelled the purchase, the transaction is voided and the refund amount (GBP => EUR) will match the charged amount. I’ve seen this with other cards.

Curve doesn’t void the transaction on the 1st card. It credits a payment of the original charged amount instead, and hence the rates can be different.

May I ask why you chose for this setting?

My underlying card is also a Mastercard and hence the conversion rate should ideally be the same. The reason I did it this was was because Curve Blue does the currency conversion for free upto a specified ceiling only.

Curve Blue (free product): 0% fee on spend in over 150+ foreign currencies worldwide of up to £500 per rolling month, with a 2% foreign exchange fee after that. ATM withdrawals are free up to £200 per rolling month, after which there will be a charge per extraction of £2 or 2%, whichever is higher.
Source: https://support.imaginecurve.com/hc/en-gb/articles/115005776925-How-will-Curve-save-me-money-abroad-