Understanding Foreign Exchange Markups
When transferring money internationally or using a credit card abroad, the rate provided by financial institutions often includes a 1% to 3% markup over the wholesale mid-market rate. By customizing the exchange rate field above, you can calculate your true transaction cost with complete transparency.
Frequently Asked Questions
What is the mid-market rate?
The mid-market rate is the midpoint between the global buy and sell rates across wholesale currency markets. It represents the fair, unbiased value of one currency against another before retail bank fees.