The markup is built into the quoted exchange rate rather than listed as a separate fee, which makes it easy to overlook. On a $500 CAD transfer to India, a 3% markup reduces what the recipient gets by about ₹1,033.
In this guide, we’ll look into:
- How the markup differs from a flat transfer fee
- What a monthly sender loses over 12 transfers at different margin levels
- Why a transfer advertised as “zero fee” can still carry high cost
- How to compare providers by total cost, not the fee line alone
How exchange rate markups work
Every currency pair has a mid-market rate (the midpoint between global buy and sell prices, published by sources like XE and Google).
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