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Frequently Asked Questions
What is the mid-market exchange rate?
The mid-market rate is the midpoint between the buy and sell prices of two currencies on the global market. It's the fairest exchange rate you can get and is what you see on Google or financial news sites. Banks and transfer services add their own markup on top of this rate—that's how they make money. The closer a provider's rate is to the mid-market rate, the better deal you're getting.
Why do exchange rates differ between providers?
Each money transfer service sets its own exchange rate by adding a margin (or markup) to the mid-market rate. This margin varies widely—traditional banks often add 3-5%, while online specialists like Wise may add less than 1%. Some providers advertise "no fees" but make up for it with worse exchange rates. That's why comparing the total amount your recipient will receive is more important than just looking at the fee.
How can I get the best exchange rate?
First, check the mid-market rate so you know what a fair rate looks like. Then compare multiple providers—don't just use your bank. Online money transfer services typically offer much better rates than traditional banks. Pay by bank transfer rather than card to avoid extra fees. If your transfer isn't urgent, watch the rates for a few days; currencies fluctuate constantly, and timing can make a real difference.
How long do international money transfers take?
It depends on the provider, destination country, and delivery method. Some transfers arrive within minutes, especially to mobile wallets or for cash pickup. Bank-to-bank transfers typically take 1-3 business days, though some providers offer same-day delivery to major banks. The payment method you choose matters too—card payments clear faster than bank transfers on the sending side.
Are online money transfers safe?
Yes, when you use regulated providers. In the UK, look for FCA authorization. In the US, check for FinCEN registration and state licenses. All major providers like Wise, Remitly, Western Union, and OFX are fully regulated and use bank-level encryption. They're required to protect your money and personal data. Just make sure you're on the official website—not a lookalike scam site.
What information do I need to send money abroad?
You'll need your recipient's full name (exactly as it appears on their ID), their bank account details (account number, bank name, and sometimes a SWIFT/BIC code or routing number), and their address in some cases. For cash pickup, you usually just need their name and phone number. The first transfer with a new provider typically requires ID verification on your end too.
What's the difference between transfer fees and exchange rate markup?
Transfer fees are the upfront charges you see clearly displayed—like "£2.99 fee" or "fee-free transfer." Exchange rate markup is hidden in the rate itself. If the mid-market rate is 1.25 but you're offered 1.22, that 2.4% difference is the markup. A provider with "no fees" but a 3% markup is actually more expensive than one charging £5 with a 0.5% markup on larger transfers. Always compare the final amount received.
Can I cancel or change a money transfer?
Usually yes, but only if the money hasn't been paid out yet. Most providers let you cancel directly from your account or by contacting support. Once the recipient has received the funds, cancellation isn't possible. If you need to change recipient details, you'll typically need to cancel and start a new transfer. Act fast if you've made an error—the sooner you contact the provider, the better your chances.