Tide Card FX Pricing Explained: How Exchange Rates and Mark-Ups Are Applied to Card Payments

Tide states that when you make card payments in a foreign currency, Mastercard’s exchange rate applies, and Mastercard sets a daily exchange rate. That positions the scheme rate as the conversion baseline rather than a Tide-created “house rate” for the conversion step.

Separately, Tide also describes circumstances where a plan-based FX fee can apply. In other words, “rate source” and “fees” are two different components in the final GBP outcome, even though they can be discussed together.

Tide explains that the exchange rate is applied at the moment the payment clears, and it may differ from what you saw before you authorised the transaction. This authorisation-versus-settlement gap is a common source of confusion because card apps can show pending items before final processing.

Mastercard also explains that timing matters (authorisation vs processing), and that the conversion rate is specific to the relevant date and time in the processing chain. That is why two purchases in the same currency can show slightly different GBP outcomes if they settle at different times.

In FX pricing language, a “mark-up” typically means a cost added on top of some reference mechanism.

For card payments, the reference mechanism is often the card-scheme conversion approach (for Tide, that’s Mastercard’s exchange rate as described by Tide).

Mark-ups can appear as an explicit fee (such as a percentage charge described in a fee schedule) or as an embedded margin inside a currency conversion rate offered by a third party (for example, merchant conversion at the point of sale).

Tide states that members on its Free plan can be charged 2.75% of the transaction amount for card payments and ATM withdrawals in other currencies, and also for GBP card payments made outside the UK, as described in its help centre.

Tide also states that Smart, Pro and Max plan members do not receive currency exchange fees.

Two important implications follow from that wording:

1. “FX fee” in Tide’s description is tied to where/how the card payment happens (including abroad usage), not only to whether the transaction currency is non-GBP.
2. It is distinct from the Mastercard exchange rate used for conversion.

There are two common mechanisms.

1. The merchant receipt can reflect an authorisation or an estimate, while the final GBP amount reflects settlement, and Tide notes the exchange rate is applied when the payment clears, which can be later than authorisation.
2. The receipt can include choices made at checkout, such as merchant currency conversion. If the merchant converts the transaction into GBP (DCC), the printed receipt might show a GBP figure based on the merchant’s conversion rate rather than a scheme conversion at settlement.

Tide describes DCC (also called cardholder preferred currency) as an option that can allow you to pay foreign merchants in GBP or withdraw abroad and be billed in GBP, and notes it can cost extra due to varying exchange rates and additional fees.

From a mechanics perspective, DCC changes who sets the conversion rate. Mastercard explains that if the transaction is converted by the merchant or ATM operator, Mastercard’s currency conversion rates may not apply. That means the “rate + mark-up” combination you see is driven by the merchant/ATM conversion decision rather than the card network’s conversion approach.

Yes, because not every cost sits with the card provider. Merchants and ATM operators can apply their own charges, and Tide’s DCC explanation highlights that additional fees can be part of the merchant conversion pathway.

Separately, Mastercard’s own guidance focuses on how conversion is handled and when its rates apply, but it also signals that the bank (or provider) may impose additional fees in connection with foreign currency transactions.

In practice, that means the total cost picture can include: the conversion mechanism, provider fees (if applicable), and third-party charges outside the provider’s control.

The cleanest indicator is often whether the merchant billed you in local currency or in GBP at checkout. If you were billed in GBP at a foreign merchant, that can be a signal that merchant conversion (DCC) was used rather than a conversion at settlement through the card network.

However, edge cases exist. Some online checkouts can present currency options, and receipts may label conversion differently across countries and payment terminals.

The key is that Mastercard notes its conversion rates may not apply when the merchant/ATM does the conversion, so the presence of merchant-set GBP pricing can alter how the transaction should be interpreted.

Refunds are processed as separate card events and can settle on a different date. Tide’s explanation that the exchange rate is applied when the payment clears is relevant here: if the purchase and refund clear on different days, the GBP conversions can differ even if the foreign-currency amounts match.

Partial refunds add another layer: the merchant may refund only part of the original amount, and the refund can clear independently. In accounting terms, that can produce small GBP variances that are “FX timing” differences rather than an error, especially when reconciliation is done at a daily or weekly cadence.

Card payments and bank transfers follow different rails and pricing structures. Card FX is typically driven by the card network conversion mechanism (and any plan-based card FX fee and merchant conversion choices), while transfer FX pricing can involve a separate provider conversion model and different fee components.

If you are trying to compare “FX costs” across different Tide features, it helps to separate the products: card payments vs transfers. For transfer-specific conversion mechanics (distinct from card settlement mechanics), see: Tide FX rate for international payments: how the conversion rate is determined