Glossary entry

Markup

A markup is an amount a provider adds to the wholesale exchange rate, which makes the rate it offers customers less favourable. It is one of the ways a firm earns revenue on a currency conversion, alongside any visible fee. Because it sits inside the rate, you only see it by comparing the offered rate with a neutral mid-market figure taken at the same time. A small markup on a large transfer can still add up to a noticeable sum in rupees. See also: margin, spread, transfer fee, and the guide Mid-Market Rate vs the Rate You Get.