Why your bank exchange rate differs from a currency converter

A converter shows a reference estimate. Your bank offers a transaction price, which may include a different rate, separate fees and a different conversion time.

Three numbers to compare

Start with the total money leaving your account, the amount reaching the destination and the currencies involved. These are easier to compare than marketing labels. A quote can have a small fee and an unfavourable rate, or a better rate and a clearly displayed fee.

A simple two-offer example

Imagine you have a total budget of 1,000 USD. Offer A has no separate fee and converts at 0.89 EUR per USD: you receive 890 EUR. Offer B deducts a 5 USD fee, then converts the remaining 995 USD at 0.90: you receive 895.50 EUR. In this example, the offer with a visible fee delivers more money.

This is only an illustration, not a comparison of real providers. Fees may be charged separately or deducted in the receiving currency, so read the exact terms.

What is an exchange-rate markup?

A markup is a difference built into the offered exchange rate relative to a comparison rate. It may be less obvious than a separate charge, but it still changes the amount you receive. "Zero commission" does not by itself tell you the total cost.

• Use the same starting budget for both quotes.
• Check whether a first-transfer promotion expires.
• Ask about receiving-bank or intermediary charges.
• Compare quotes collected at a similar time.

Timing can also explain the difference

A card payment may be converted when it is processed rather than when you first see it as pending. A rate offered now may expire before a transfer is funded. A daily reference observation is not a promise that every provider will use that value later.

Use 1,000 USD to EUR as a dated reference, then compare it with the provider's final receive amount. Our methodology explains why the calculator is an estimate.

Common questions

Does a different rate prove a hidden fee?

No. A different timestamp, source or transaction type can also matter. Look at the full quote before drawing a conclusion.

What is the best single comparison?

For the same total amount paid, compare how much arrives in the same destination currency, along with the delivery time and conditions.

Source and further reading

Consumer Financial Protection Bureau: sending money abroad. Examples in this article use made-up rates for explanation, not current offers.