Tried withdrawing euros from an ATM in London. The ATM charged no fees , but the monzo exchange rate offered was not so good. While the mastercard rate is 1.14 euros , the Withdrawal rate offered was only 1.07. Why is that?
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Most Euro dispensing ATMs in the UK are operated by Raphaels Bank. https://www.raphaelsbank.com/atms/faqs/
Whilst they do not charge commission, they decide on the exchange rate “with rates aimed at beating the largest currency exchange providers.” https://tfl.gov.uk/info-for/media/press-releases/2014/july/euros-on-the-tube
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Yep - the Mastercard exchange rate is based on either making payments in the local currency when abroad, or withdrawing from ATMs in that local currency whilst in that country.
It doesn’t account for withdrawing a foreign currency whilst in a different country. As that’s a fairly niche market, the ATM owners, in this case Raphael, will have their own way of doing a conversion, which is what happened here!
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That happened to me too when I got euros out while still within the UK border: charged me £97 for €100 and in France it was only £87 for €100
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