More relevant weekend FX policy

Currently the T&C state that

In case of withdrawals or purchases over the weekend with an underlying card of a different currency of the spend, as the Forex markets are closed, we take the rate of last days the market were open (in most cases Friday at 23:59 GMT) and apply a surcharge. If there is a currency conversion and the currency of the underlying card are GBP, USD or EUR, the rate will be increased by 0.5%. In any other case, that is if either the currency of your spend or the currency of the underlying card is any our other supported currencies, the rate will be increased by up to 1.5% .

First things first, we would love to get rid of the International Weekend Fee completely, but I am aware that is not exactly possible right now.

However, I would like to raise an issue to this specific solution which favours GBP, USD, and EUR over all the other currencies. As @Curve_Marie once mentioned:

That would suggest that some of the currencies are preferred due to the fact that they attract less risk. However, I would like to pinpoint that some of the not-preferred currencies have basically no risk whatsoever or only little fluctuation risk attached and it would be extremely valuable if Curve’s policies acknowledged that.

I would like to provide examples of few currencies that fit these requirements (especially Euro-pegged currencies):

  • Danish krone - The krone is pegged to the euro via the ERM II, the European Union’s exchange rate mechanism (de facto overall fluctuations around 0.5%).
  • Bulgarian lev - The Bulgarian lev is pegged to the euro through a currency board (no fluctuations). This also applies to some other, less relevant currencies mentioned here.

Considering this, using BGN<>EUR should not have a fee at all (it basically is the same currency), while other pairs, such as BGN<>USD/GBP or DKK<>EUR should have them reduced. I have only mentioned the most obvious cases here, but the truth is that this situation could be in use with many other currencies as well. This time I’d like to use my own home example, PLN<>EUR exchange rate. As you can see, the weekend fluctuations are usually somewhere within the 0.2%-0.3% mark, while Curve charges 1.5% on all purchases.

To show you why this is that important, I’d like to imagine a made-up situation. Let’s assume I pay 200 EUR during my weekend purchases on holidays abroad between 10th and 13th May (dates set specifically because Euro got more expensive after the weekend). Here’s an overview of the costs with various payment methods:

Method of payment amount in PLN
live FX rate on Friday 859.20 PLN
live FX rate on Monday 860.96 PLN
Paid by Revolut (weekend rates) 863.50 PLN
Paid by Curve (weekend rates) 872.09 PLN

That example clearly shows how Curve makes ~2.5 EUR per weekend on my spending even when my spending currency goes up (Curve’s profits get even higher when it goes gown). Another major difference between Curve and Revolut is that Curve doesn’t let me buy foreign currency in advance, so I can’t take the risk myself.

There’s a few different aproaches to this problem, some of them already mentioned in a linked post:

However, these were never implemented and I can assume for a good reason.

I suggest expanding the list of low-fee currencies Revolut-style. A quite important thing to notice is also that some (if not most) of the fluctuation risk for Curve is balanced by having users making opposite conversions during the same weekends, so it’s not like Curve needs to settle all foreign transactions on the market. If I pay in Euros on Saturday morning, but a few hours later an Euro-user pays in Polish złoty a similar amount, only the difference between our transactions needs to be exchanged by Curve on the regular market. That’s why I wonder if the current offering is good enough. I deem it a bit discriminatory for specific European countries (the non-euro ones, as in Sweden, Norway, Denmark, Czechia, and Poland).

My main point is:

0.5% is cool as a convenience fee, but 1.5% honestly is not a fintech price.

I’d absolutely love to have this issue solved, as it would make Curve my main travel card. It would also prove that you really want to improve Curve experience in different countries.

P.S there are some edge cases where Curve makes a better offering than Revolut even now. I currently have a friend staying in Ukraine. Curve gives her better rates both during the week as well as on weekends, as Revolut seems to be a bit biased against this specific country and currency.

I’d also add that an in app currency tab, like Revolut has, where we would be able to preview exchange rates would be nice

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Interesting insight, @Pawel.

Can this be included in development thinking, @Curve_Marie?

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Couldn’t agree more. When I travel it’s normally on weekends, so I end up using my Tandem or Revolut card (with pre-exchanged currency) and leave Curve at home.

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The mastercard rate is better than Curve on the weekends - specially because the rate is only fixed when the transaction is acquired - instead of pending. That normally is on Monday.

Curve is useful only on weekdays for the currencies that it supports.

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I would also want you to notice that the annual spending limit for the Curve card (at least in my case) is 10000GBP, which in the most extreme case makes weekend fees limited to 150 GBP/year. Let’s make a generous assumption that an average Curve user spends half of their time spending money abroad in a different currency and half of that amount is spent on weekends. Again, I assume real numbers are much lower. That lowers the fee to 37.5 GBP. Curve Metal and Curve Black users, despite paying 120-150 GBP per year are still subject to the fee, which, if not completely abolished, should be waived as part of the subscription.

In my case the annual limit is 50000GBP

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Good to know. I didn’t know it was upgradeable. However, the point holds. How big could the average cost of this exchange be for Curve? It’s not like we’re all maxing out our cards specifically on weekends abroad.

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This is great food for thought. Thank you for writing it up and explaining your point so well! Your idea has been shared with the Product Team and I can imagine it will get a lot of traction here in the community :smiley:

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If Curve removed these fees for Metal holders I would definitely purchase metal as it stands.

Right now all of my underlying cards actually beat Curve for transaction fees - all week. As such I’m struggling to justify carrying it.

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1.5% are higher than my normal bank
That take 1%
Revolut take 0.5% so there are a little save

But why would i use curve in these case? and pay more than i have to. Don’t make sense

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