Going abroad and in need of foreign currency? In this article, we'll explore where to exchange currency - from good deals to the places you should avoid.
Investing through the Robinhood app already? You’ll want to know about the Robinhood debit card. It comes with Robinhood’s Cash Management account feature, and is issued in partnership with Sutton Bank.
In this article, we'll tell you about the main features, fees and everything else you need to know about the Robinhood debit card.
If you often travel or like to shop online with international retailers, you might be better off with a Wise debit card to cut out foreign transaction fees. While the Robinhood debit card can only use 1 currency², a Wise account and debit card lets you convert, spend, and send 40+ international currencies, and receive in 10.
|📝 Table of contents|
Let’s start with the basics. Robinhood is one of the best known investment platforms on the market, allowing people to trade a whole range of stocks, shares, ETFs and equities, online and via an app.
Once you have a Robinhood brokerage account, you can also choose to upgrade to Robinhood Cash Management³ to access additional features and get a linked debit card. Use your card to spend and make ATM withdrawals more or less anywhere Mastercard is accepted, making it easier than ever to access your available Robinhood funds.
|💡 Want to learn more about Robinhood in general? Read our comprehensive Robinhood review here.|
Once you upgrade your Robinhood account to Cash Management, you’ll get³:
- Routing and account numbers to send and receive payments
- A linked physical or virtual debit card issued by Sutton Bank
- Interest on your cash, through a network of partner banks - this is currently set at 0.30 APY¹.
There are very few fees to worry about with the Cash Management feature. That means no account opening charge, no maintenance fees, no inactivity fees, and no Robinhood foreign transaction fees. However, there are some potential costs you’ll want to consider:
|Cost type||Robinhood Cash Management fee²|
|Foreign transaction fee||Mastercard may charge a currency conversion fee|
|Out of network ATM fee||ATM providers may charge a fee which Robinhood will not reimburse|
|Merchant fee||Some merchants may charge fees for paying by card|
|Gold fees||Transactions funded from margin will incur interest charges|
|💡 Don’t forget, some fees may also apply to your brokerage account, which can vary depending on how you use it. Get a full guide to Robinhood account fees here.|
You can get a physical or virtual debit card with Robinhood Cash Management. If you select a physical card you can choose between 4 different designs, and use your card in person, online, and for mobile transactions³.
When you upgrade your Robinhood brokerage account to a Cash Management account, you’ll be able to apply for your physical or virtual Robinhood debit card. Order your physical card in the color and design of your choice:
- American flag
Activate your physical card once it arrives, and you’ll be able to get started spending right away. Let’s take a look at the costs of holding and using a Robinhood debit card. We’ll also look at the Wise international debit card as a comparison:
|Robinhood debit card¹||Wise debit card|
|New card fees||0 USD||9 USD|
|Foreign transaction fees|
Mastercard may charge a currency conversion fee
|Monthly fee||0 USD||0 USD|
|Minimum deposit||0 USD||0 USD|
In-network ATM fees: 0 USD
Out of network ATM providers may charge a fee
Fee-free twice a month until 100 USD everywhere in the world, regardless of ATM.
After that, 2% on the top of 100 USD, and 1.50 USD per transaction.
Independent ATM providers may charge a fee
| Available currencies | 1 (USD) | 50+ |
Robinhood doesn’t make a charge when you use your debit card internationally. However, when you pay in a currency other than USD, Mastercard might add a foreign currency conversion fee. That means you may pay more when you travel or spend online with merchants based abroad.
|💡 The Wise account and card, on the other hand, lets you hold and manage 50+ currencies in the same place - so you avoid foreign transaction fees entirely. Smart technology means you’ll always pay in the local currency and if you don’t have it in your account, the card will automatically convert to it from the balance that’s cheapest for you. That way, you save when you’re making payments around the world.|
Robinhood only allows customers to hold a balance in US dollars. That means that if you spend with your Robinhood debit card when you’re abroad, or when you shop with an online merchant overseas, you may pay a foreign conversion fee to Mastercard.
Instead, why not get a Wise account to hold 54 currencies and spend easily with your linked debit card. It’s free to spend any currency you hold - which means no more foreign transaction fees to worry about. Instead, just top up your account in the currency of your choice, and convert to any currency you need with the mid-market rate, plus a small and transparent fee. That can mean it can be 4x cheaperto use Wise compared to your regular bank card.
Once you’ve received your Robinhood debit card, you’ll need to activate it to be able to use it. Here’s how⁴:
- Open the Robinhood app or log in on the Robinhood website
- Go to the Cash tab, and find the Debit Card section
- Tap Have you received your card yet?
- Select Yes
- Turn on optional spend alerts and location protection
You can check where your card is - or order a new one if yours has gone missing - in the Robinhood app:
- Go to the Cash tab, and find the Debit Card section
- Tap Have you received your card yet?
- Select No to get an update on your card’s progress or re-order if needed
You can use your Robinhood debit card to pay in person and online, and to make cash withdrawals from ATMs. You’ll be able to use your card anywhere around the world where you see the Mastercard logo displayed, as long as you have available cash in the account. It’s worth noting that there are a few countries where you can’t use your card - if you’re planning to travel, it’s worth checking out the full list online to make sure you won’t be impacted by this.
One of the easiest ways to use your Robinhood debit card is to set up a mobile wallet through Apple Pay, Samsung Pay or Google Pay. This means you can just tap to pay in venues which accept mobile payments, and you won’t even need to carry your physical wallet with you.
|💡 Learn more about how to pay with your phone here.|
You can downgrade your Cash Management account, or close your Robinhood brokerage account entirely, as long as there are no pending card transactions on the account. If there are transactions marked as pending, you’ll need to wait until these have settled or expired before your account can be closed or downgraded.
You’ll receive any interest you’ve earned up to the point you downgrade or close your account - but your Robinhood debit card will stop working with immediate effect when your account is shut.
Still unsure about whether the Robinhood debit card is right for you? Here are a few pros and cons to weigh up.
- Spend and make ATM withdrawals in most countries, Mastercard is accepted
- Earn interest on any funds you hold in your linked Cash Management account
- No account opening or maintenance fee to pay
- 75,000 ATMs in the US available for free withdrawals
- Get your card in a design of your choice
- Robinhood debit card can not be used in a selection of countries - check out the details before you order
- Mastercard may add a foreign transaction fee when you spend internationally²
- Out of network ATM fees can apply and will not be reimbursed²
- Daily and monthly limits apply for both ATM withdrawals and card spending²
- Once you’ve chosen your card, you can not change your mind on the design
The Robinhood debit card can be an easy way to access any available funds in your Robinhood brokerage account. If you already use Robinhood for trading and investments, getting a card is free and offers the opportunity to earn some interest on your uninvested funds.
However, it’s important to bear in mind that Robinhood is primarily a trading and investment platform - and all investments come with a risk of losing money. If you’re not familiar with trading, it’s a smart idea to research and learn more before you put your hard-earned money at risk.
Robinhood might not be the best option if you’ll be traveling or spending in foreign currencies - as you’ll be charged a currency conversion fee when In that case, you could be better off with the Wise account and debit card to avoid foreign transaction fees and make payments and withdrawals globally for less.
The Robinhood debit card is provided to customers who upgrade their Robinhood brokerage account to enable Cash Management features. You can use the Robinhood debit card to spend available funds you hold in your account in person, online and using mobile payments on the go.
If you upgrade your Robinhood brokerage account to a Cash Management account, you’ll be able to get a linked physical or virtual debit card. You can use your Robinhood debit card to spend and access available funds in your Robinhood account.
The Robinhood debit card comes with the Robinhood Cash Management account. This isn’t a traditional bank account, although it does have some similar features to your regular checking or savings account. You can use your Robinhood debit card for day to day spending - like a checking account - but you’ll also earn interest as you would in a savings account.
Getting a Robinhood debit card does not impact your credit score in any way⁴.
All sources checked on 16 November 2021
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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