But as we know, the spread on their rates is huge so you can end up getting a rate that’s up to 14% worse than the spot rate, if you use a service that companies like Travelex provides.
Monzo have explained more about how currency conversion works & compares with the MasterCard rate here -
Foreign exchange dealers make money by adding either a Commission (percentage of the total amount), a flat Fee (e.g. £2), or their own Margin to the spread, reflected in the advertised exchange rate. Margin is the most common, and is usually advertised as “commission free”, however be warned—the spread can be very wide!
The MasterCard rates are incredibly good. If you need to buy €1,000 of travel money, you could save between £10-90 compared to a travel money shop or ATM.