How Multicurrency Accounts Take the Bite Out of Spending Money Abroad

You can spend the money in most multicurrency accounts with either a phone tap or a physical card, which is available at no charge. When you’re making a purchase abroad with Revolut, the app or card defaults to the local currency. If you don’t have enough of that currency in your Revolut account, the service will exchange on the spot at the lowest rate. You can also make a currency exchange via the app at any time to take advantage of an especially favorable rate.

How are they different from regular credit or debit cards?

Many debit and credit cards charge a fee (3 percent is standard for U.S. and Canadian credit card companies) to use overseas. The multicurrency accounts charge no foreign transaction fees (unless otherwise stated) and use the lowest exchange rates possible. (The services make money on subscriptions as well as the fees that merchants pay on transactions, among other things, Mr. Rossman said.)

Where can they be used?

The majority of multicurrency accounts can be used wherever Visa or Mastercard is accepted, said Michael Bodansky, the head of corporate communications for Revolut, which is based in London. Currently, anyone living in most areas of North America, Europe, Japan, Singapore or Australia can open a Revolut account. The service is planning to expand to customers in New Zealand, Brazil, Mexico and India soon.

How do you set up an account?

Download the app for the multicurrency account and provide some basic personal information such as your name, address and Social Security number. For most people, it should take no longer than 10 minutes to be approved for any of the apps. If you choose, a card will be mailed to you, but you can start using the Revolut app, which is linked to your bank account via Apple Pay or Google Pay, immediately.

What are the fees?

They vary by the plan you choose and your country of residence. In the United States, Revolut’s standard plan, for example, has no monthly fee and includes exchanges of all currencies up to $1,200 per month at no charge on weekdays, and with a 1 percent fee on the weekends. (If you want to use the app abroad on a weekend without paying a fee, you can transfer into a new currency on a weekday.) If you exchange more than $1,200 per month, there is a fee of 0.5 percent for additional transfers. You can also make unlimited withdrawals from A.T.M.s in the Allpoint network, and up to $1,200 per month without fees outside the network, though the A.T.M.’s owner may still impose a fee….