You spend $2,000 abroad with the Robinhood Gold Card. If the purchase is eligible, the card's rewards rules say you earn 3 Points per dollar. That gives you 6,000 Points. But if the transaction is made in a foreign currency and your account is subject to Robinhood's current foreign transaction fee, the same $2,000 purchase also generates a 3% fee: $60. So the first question is simple: if the card gives you 3% in rewards and takes 3% in foreign transaction fees, do those two numbers cancel each other out? At Robinhood's documented brokerage cash redemption rate of $0.01 per point, they can. Six thousand Points are worth $60 when converted to cash in a Robinhood brokerage account. The fee is $60. The two numbers meet exactly. But that does not mean the card is automatically giving you a 3% return and then taking it back. The reward and the fee work differently. The fee is a fixed percentage of the qualifying transactio...
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