July 25, 2019 The popularity of cashless payments continues. We like to pay by cards. According to NBP data, we performed as many as 928 million contactless transactions between July and September last year. They constitute 75.7 percent all card payments. We also want to use the payment card abroad. This is not a problem, because banks offer a multi-currency card that allows payment in currency without unnecessary costs. Do we need a currency account for this? Details in the article!
What is a multi-currency card?
The popularity of cashless payments means that cash is rare in our wallets. Already in 2017, 24 percent Poles declared that they had no money with them, only the card. In turn, as much as 56 percent the respondents had no more than several dozen clotys in their pockets! When we go on vacation, we also do not need to take cash – a much better option is a multi-currency card.
A multi-currency card is a way to make payments abroad, which gives you the opportunity to avoid a currency conversion fee. Payment by a regular debit card attached to a bank account (also to a free personal account) requires the conversion of a transaction made in another currency into PLN. At low amounts costs are not felt. With higher pockets, a large sum will run away, which is completely unprofitable! Before we explain what exactly the operation of a multi-currency card is, let’s get to know the costs of currency conversion to 100%. convince yourself of this solution.
How much does currency conversion cost?
Transaction currency conversion applies to every transaction made in a currency other than the account currency. The cost of currency conversion is calculated from the value of the transaction after conversion into the currency of the account and relates to transactions using the basic debit card issued for an individual customer.
Fees for currency conversion may vary depending on the bank and the type of account to which our debit card is assigned. The following table presents the analysis of the costs of currency conversion of transactions for the basic payment account.
How does a multi-currency card work?
A multi-currency card gives you access to several accounts that belong to one person, but are kept in different currencies. It’s the perfect solution for customers who care about convenient payments. You don’t need to have several separate cards! A multi-currency card can be connected to several bank accounts at the same time, and thus support payments in clotys, euros, pounds or dollars. During the transaction, the system automatically recognizes the currency in which we pay and withdraws cash from the appropriate account, without exposing us to additional commissions.
How does it look in practice?
- We open a personal account or currency account in the currency in which we intend to make transactions.
- We set up a multi-currency card or start a multi-currency service on our debit card.
- We make transactions and the bank collects payment from the correct account.
Multi-currency card and currency account
Does a multi-currency card require a currency account? No, a multi-currency card can be connected to a basic savings and settlement account or to a specially created currency account.
What is a currency account? This is the type of invoice on which we accumulate funds in a foreign currency. To open such an account, we should visit any bank branch, choose the currency in which we want to keep the account and sign the contract. Regular customers of the bank can open an account in the online banking system or call the hotline.
When is a currency account a good option? We should set up a currency account if:
- we often travel abroad,
- we repay a mortgage in a foreign currency,
- we do shopping in foreign online stores,
- we receive income from another country,
- we want to go abroad to study or for an internship.
The banks’ offer also includes a currency savings account, which is used to accumulate and multiply funds in another currency for future trips and purchases. It provides free access to money without losing interest and attractive interest rate.
How do you fund your currency account?
The currency account you intend to use cannot be empty. If the currency account runs out of funds and we make the payment, the bank will make the transaction from the money in the zloty account. Moreover, we will pay a commission for currency conversion according to the table of fees and commissions attached to the contract. That is why before vacation it is worth thinking about a holiday loan. The more so because non-bank institutions constantly surprise with attractive promotions. Check the installment loan ranking and see that online loans are available to everyone.
How do you fund your currency account? We can use the online currency exchange office, make a transfer from another bank or deposit funds at the facility.
In which bank can you create a currency account?
Loan rankings are used to search for the best offers of payday loans and installment loans. It is also worth using such combinations to select favorable proposals for multi-currency cards and currency accounts. Let’s check which banks give the opportunity to set up a multi-currency card and currency account and how muit costs.
Revolution multi-currency card
The Revolution multi-currency card is a fintech start-up and an alternative to banking possibilities in this area. It allows you to make payments and withdraw cash anywhere in the world without currency conversion costs, spreads and commissions in 150 different currencies. Currency conversion does not apply to amounts up to PLN 20,000. Above 20,000 we will pay 0.5% margin, which is still a more favorable offer than banks offer us.
It is worth taking a closer look at the product of the British start-up and when looking for a solution for yourself, take into account technological innovations. The more that the Revolution card is an extremely convenient and financially attractive tool for making cheap international payments.