You can use your card in a country where you are unable to preload the local currency you will need to load your card in Sterling. When you use your card overseas we will use the MasterCard settlement rate and an FX mark up of 2.49% to exchange the funds.
With regard to the FX mark-up, the 2.49% relates to the margin we apply to the MasterCard settlement rate when converting your sterling into local currency.
- assume that the £ to € MasterCard settlement exchange rate is £1 = €1.25
- converting £10 would yield €12.50 and, with the 2.5% differential, £10 = €12.1875
Naturally, whilst the yield is lower than that represented by the MasterCard settlement exchange rate, it tends to be better than that offered by the banks.
Your card is loaded in sterling and those funds are not converted to the local currency until you make a purchase or an ATM withdrawal. The 2.49% margin is charged at that point since the transaction occurs in a currency different to that which is on the card.