RateRunnertransfer cost ledger

How do you find the hidden markup in an exchange rate?

Divide the rate you were offered by the mid-market rate, subtract that from 1 and multiply by 100. That percentage is the markup; multiplied by the amount converted, it is the cost that never appears as a fee.

Markup check · Form RR-2

mid-market rate in Wise comparison data, 15 Oct 2026, 14:53 UTC. Replace it with a fresher rate if you have one.

Markup receipt

Offered rate ÷ mid-market
0.97008
Markup
2.99%
Markup cost
29.77 USD
Upfront fee
5.00 USD
True total cost
34.77 USD
Recipient gets
17,797.85 MXN

Prefilled with Chase (US)'s USD → MXN quote from the 15 October 2026 snapshot, compared with the mid-market rate recorded when it was collected (18.4390).

A worked example from the 15 October 2026 snapshot

On 15 October 2026, Chase (US) quoted 17.8873 pesos per US dollar for a 1,000 USD transfer, with an upfront fee of 5.00 USD. The mid-market rate when the quote was collected was 18.4390.

  1. Ratio: 17.8873 ÷ 18.4390 = 0.97008
  2. Markup: (1 − 0.97008) × 100 = 2.99%
  3. Amount converted: 1,000 − 5.00 = 995.00 USD
  4. Markup cost: 995.00 × 2.99% = 29.77 USD
  5. True total cost: 5.00 USD + 29.77 USD = 34.77 USD (3.48% of the amount sent)

The best quote in the same snapshot delivered 18,593.32 MXN, which is 795.47 MXN more than Chase (US). Most of that gap came from the rate, not the fee. See the full USD → MXN ledger.

How large are markups in practice?

Across the 395 ranked quotes for sending 1,000 in the 15 October 2026 snapshot (40 corridors), markups split clearly by provider type:

Provider typeQuotesMedian markupHighest markup
Banks1172.23%13.06%
Transfer services2781.13%7.29%

The bank figures cover only the banks that appear in Wise’s comparison data for these corridors, mostly large US, UK, eurozone, Canadian and Australian banks. They are indicative quotes, not a census of every bank.

Why markups are easy to miss

A fee is a separate line on a receipt; a markup is folded into the rate, so the only place it shows is in how much the recipient gets. Since 2020, EU rules have required payment providers to express currency-conversion charges on card payments as a percentage markup over the latest European Central Bank reference rate, precisely so people can compare them (Regulation (EU) 2019/518). In the United States, the remittance transfer rule requires providers to disclose the exchange rate and the amount the recipient will receive before you pay (Regulation E, 12 CFR 1005.31), which is what lets you calculate the markup yourself.

More on this: how exchange-rate markups work and what the mid-market rate is and where to find it.

Questions people ask

What is an exchange-rate markup?
It is the difference between the mid-market rate and the rate a provider gives you, expressed as a percentage. A markup of 2% on 1,000 converted costs about 20 in the sending currency, even when the provider advertises no fee.
How do I calculate the markup on a rate I was offered?
Divide the offered rate by the mid-market rate for the same moment, subtract the result from 1 and multiply by 100. For example, 17.96 offered against a mid-market rate of 18.52 is (1 − 17.96 ÷ 18.52) × 100 = 3.02%.
Which mid-market rate should I compare against?
Use a rate taken as close as possible to the time of your quote. Rates move during the day, so a reference from hours earlier can make a markup look larger or smaller than it is. The checker on this page shows which reference it uses and when it was taken.