RATEPILOT GUIDES

Understand the rate before you exchange.

What is an exchange rate?

An exchange rate describes the value of one currency in terms of another. Rates move as markets respond to economic conditions, interest-rate expectations, trade, capital flows and other factors.

What is an FX spread?

A provider may quote a customer rate that differs from a reference or wholesale market rate. The difference is commonly described as a spread or margin and can form part of the provider's revenue.

Foreign transaction fees

Some payment cards charge a percentage when a purchase is processed in a foreign currency. Other costs can also apply, so review the terms of the specific card or provider before spending.

Comparing international transfers

Compare the amount the recipient actually receives. Consider the exchange rate, transfer fee, payment fee, delivery method and expected arrival time together.

Dynamic currency conversion

Some merchants or ATMs may offer to charge you in your home currency rather than the local currency. That option can use a separate conversion rate or markup, so inspect the offered rate and terms before accepting.

More RatePilot guides

Exchange Rate Spreads: What You Actually Pay →

Foreign Transaction Fees Explained →

How to Compare International Money Transfers →