Revolut Credit Card – No more foreign exchange fees!

Posted on Categories Frugality, Spending, Tips
Revolut Credit Card - No more foreign exchange fees!

Yes, yet another post about credit card 🙂 This one is going to be about the Revolut credit card.

Three weeks ago, I tried to find the best credit card in Switzerland. And last week, I studied another credit card, the TCS Travel Mastercard Gold, with 1% cash back. At this point, I found out that foreign exchange fees were costing me more than the annual fee on the card.

In my first review of my options for Switzerland, I already took a look at Revolut. They offer prepaid credit cards with free foreign exchange transactions! I didn’t want to consider it because there were a few problems. In this post, I’m going to come back to these problems. I finally decided to order a Revolut credit card! And I found out a process to top up a Revolut card for free in Switzerland!

Revolut Credit Card

"<yoastmark

Revolut is a company from the United Kingdom. They are pretty young, they started in 2015. They don’t have a real credit card. But they offer a prepaid credit card. Both MasterCard and Visa are available. Which is almost the same for most usages. You can use it on the internet and you can even withdraw money at an ATM. They offer two types of cards:

  1. Virtual Debit Card: You can generate it in your Revolut account. You can use it online with its number.
  2. Physical Card: You can order a physical debit card for a small fee.

But the most important thing with Revolut is that foreign exchange transaction are free! There is no foreign exchange fees! Since I spend around 5000 CHF in foreign currencies every year. My new credit card will bill me 1.5% of this amount. Which is 75 CHF per year. If I use Revolut card for all my foreign spending, I will save 75 CHF per year.

Why did you not order it directly ?

Mainly because it’s not as convenient as a credit card. You need to top up the card before you use it. Revolut has a CHF IBAN, but it’s not in a Swiss bank. Therefore, you cannot top it up for free directly from your bank. In fact, there are some banks from which you can transfer for free Revolut. You have to select that the fees will be paid by the beneficiary. But my bank does not offer such option.

Why did you change your mind ?

In fact, there is a way a to top it up for free using another card as an intermediary. And I realized that I was being lazy for not wanting to top it up. Let’s see how to top it up for free now!

How to top up Revolut for free

Since Revolut card is a prepaid debit card, you need to top it up. You have several choices to top it up:

  1. A debit card: Free!
  2. A credit card: Large fee from Revolut
  3. A bank transfer: The fees depend on your bank

Of course, using option 2 should be avoided at all costs. There is no point in spending more money than what you’ll save in foreign exchange fees. If you already have a Mastercard or Visa debit card, you should definitely use option 1. Until recently, I did not have one. So I was stuck with option 3. Unfortunately, Revolut does not offer a CHF bank account that is located in Siwtzerland. Therefore, if you want to transfer money to Revolut from your bank account, you need to pay a fee! Unless your bank allows to make the beneficiary pay for the fees. But my bank does not have such an option.

So basically, if you are in Switzerland, you are stuck with option 1. You need a debit card to top up Revolut for free! If you don’t have one, you need to find one with two properties. You should be able to top it up for free. And you should be able to use it to top Revolut for free as well. Here comes TransferWise to the rescue.

Top up Revolut card for free using TransferWise

TransferWise Credit Card
TransferWise Credit Card

TransferWise is an Estonian company. They provide international transfers at very low rates! At the beginning, in 2011, they only started with offering a system for multi-currency account. With this, you could get paid in the UK and spend your money in Estonia. And don’t pay too much fees! In 2017, they added a debit card to their offer. The TransferWise Borderless Card. This is what is interesting for us!

Indeed, you can have a TransferWise Borderless  card for free! And you can top it up for free too! So what you do is transfer money to your TransferWise card and then transfer it again to your Revolut card. It’s not as simple as it would ideally be, but it works well. I tested this technique and I didn’t get charged a single CHF of fee!

You need to start by creating a TransferWise Borderless account. You’ll have to transfer some money to it. Then, you will create a Revolut account. And finally, you can transfer money from your bank (or credit card) to TransferWise. And then from TransferWise to Revolut.

Order TransferWise Borderless Card

The first thing you need to do is to apply for a Borderless Card. For this, go to TransferWise. Then, you have several ways to register:

  1. Use the Register button on the top right
  2. Use the claim your discount button on the right
  3. Select Get a Borderless account on the menu
  4. Click on the Debit Card tab and click on Order a card

It’s a bit of a mess, but in the end, all these options will do the same thing 😉

The procedure to create an account is fairly standard. You’ll need to fill a lot of information. You’ll need to scan your ID (or driving license or passport) to verify your identity. And you’ll need to top up at least 20 CHF to validate your account. You can use a credit card to top it up for free and instantly. After all this is done, you can order a Borderless card. The card will arrive by mail after a few days. In my case, it arrived in three days. Since it comes by air mail, this is pretty fast. And nothing here cost any money. Everything is free. You will now have a Borderless Mastercard debit card for free!

You could use your TransferWise card in place of your Revolut card. However, they have a few more fees than Revolut. Even if it stays very reasonable.

Sign up for Revolut

Now you are ready to sign up for Revolut. You have to install the application on your smart phone. There is no way around it. This is great for most people. But for people like me who dislike phone, it’s not perfect. Nevertheless, it’s pretty easy. You can go to Revolut site to get a direct link to the application to download. You can also search for Revolut in your phone application store (Google Play or App Store probably).

Once it’s installed, you can go through the registration process. It’s very similar to the registration of TransferWise. You’ll have to enter standard information about yourself. You’ll also have to scan your ID. At some point, for authentication, you’ll have to top up Revolut. You can use your TransferWise card now to top it up. And this will be free!

Once this is done, you can either start using a virtual card or order a physical card. If you order a physical card, you’ll have to pay 6.99 CHF for the delivery. It’s a bit sad that you have to pay for this since it was free for TransferWise. But it’s still a very fair price. And this should be the only time you pay anything to Revolut. My card arrived quite quickly, 4 working days I think.

Now you can start shopping in foreign currencies without any fees!

Summary

I think I’m now settled for my credit card system. I should soon receive my Cumulus Mastercard. It has no annual fees and a 0.33% cash back bonus. You can read about it in my comparison of Swiss credit cards. Then, I now a Revolut Visa debit card. I already used it to pay for SiteGround hosting in EUR. And I used it already to pay for Amazon books in EUR. I plan to use it as much as possible on all foreign currency transactions. This will bring my cost down to zero normally. And I should be able to enjoy the bonus of my Cumulus Mastercard.

Did you ever try a Revolut card ? Which credit card do you use ?

3 thoughts on “Revolut Credit Card – No more foreign exchange fees!”

  1. I’ve been able to send money to my Revolut by transfer from my bank account. Simply select “Fees borne by beneficiary” and transfer to the Revolut CHF account.
    They do have a CHF account, just not in Switzerland. Note, it took about 1.5 – 2 days for the money to arrive in Revolut.

    1. Hi Derek, this is good to hear 🙂

      Unfortunately, my bank does not have no such option.
      Yes, you are right. I was not very clear in the article. They do have a CHF IBAN but not a CH IBAN 😉

      Thanks for sharing your experience 🙂

  2. Thanks for the insightful article!
    I live in Austria and currently have three “free” credit cards, i.e., I pay no monthly maintenance fee. Indeed, all three cards charge FX commission on payments when I pay with them abroad.
    Both Revolut and Transferwise still seem to have significant disadvantages for me: I need to prepay to have the desired spending power (which I could) and I would add quite some complexity to my financial setup. Living and working almost entirely in Euro-countries, the benefit of not having to pay FX commissions seems minimal.
    So, to make such a card really interesting for me (product developers at Revolut and Transferwise, listen 😉 I’d love to see a true credit card which can be settled monthly with a direct debit from my existing checking account. A loyalty program on top of this would be nice to have too! Having this, I would switch and cancel two other cards immediately.
    Thanks and cheers
    MFF

Leave a Comment