When you send money abroad, we buy the foreign currency on your behalf. We do this at wholesale rates that are not directly available to individuals or most businesses.
We then sell the currency to you at a slightly different rate. The difference between the wholesale rate and the rate we give you is called a margin. This margin is variable and depends on the size of your transfer, the currencies you are exchanging, and market conditions. The margin is part of our return for carrying out the exchange.
In addition to the margin, we may also charge a payment fee for processing your transfer. This is a fixed fee per payment and covers the cost of moving your money through the payment system.
Sometimes, banks involved in delivering your payment, known as intermediary banks, may deduct their own fees. These fees are not charged by us, and in many cases we cannot know the exact amount in advance. Where possible, we will tell you if intermediary fees are likely to apply, or give you an estimate based on typical charges.
Together, the margin and any payment fees make up the total cost of your transaction. We always show you the amount your recipient will receive, excluding any intermediary fees, so you can see the full impact of our pricing before you confirm your transfer.
If you want to understand how to compare the pricing of different providers, please refer to our 'How to compare pricing across providers' webpage here.