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Exchange-rate margins: the cost hidden in a conversion

A transfer with a small fee can still be expensive if the exchange rate is poor. Here is how to see the margin and what the main services say about their rates.

Updated October 14, 2026

What a margin is

When a service converts money it uses an exchange rate. The mid-market rate is the midpoint between the buying and selling prices on the currency market. Some services give you a rate below it and keep the difference: that is the margin. It does not appear as a separate fee, so a transfer with a low fee can still cost a lot.

What the services say

Wise says it converts at the mid-market rate and does not hide fees in the exchange rate. [1] [2]

Payoneer says its conversion rates are based on wholesale market rates, and that when a withdrawal involves conversion, the fee is included in the rate. [3] [4]

PayPal says the exchange rate for a conversion includes a fee above its base exchange rate. Its UAE fee page lists 3.0% for converting your balance or payments you receive in the UAE, Saudi Arabia and Egypt. [5] [6]

How to work out the cost

Look up the mid-market rate from a source you trust at the moment you compare, and note the rate the service offers you. Enter both, with the fees, into our transfer fee calculator: it shows what the margin costs on your amount, next to the other fees.

Paragraphs without a source number are our own explanation or advice, not a statement by the provider.

This is general information, not financial, legal or tax advice. Providers change their terms; check the linked official page before you act.

Sources

  1. Wise Help Centre: What is a Wise Account?, Last checked October 14, 2026
  2. Wise: Fees & Pricing (US), Last checked October 14, 2026
  3. Payoneer: Pricing, Last checked October 14, 2026
  4. Payoneer: Withdraw funds to a local bank account, Last checked October 14, 2026
  5. PayPal AE: Seller fees for merchants and businesses, Last checked October 14, 2026
  6. PayPal AE: Seller fees for merchants and businesses, Last checked October 14, 2026

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