Glossary entry

Transfer fee

A transfer fee is a visible charge for sending money, which may be a flat amount, a percentage of the amount sent, or zero. It is only part of the total cost, because the exchange rate margin also takes a share and some payment methods, such as credit cards, add their own charges. A low fee beside a weak rate can cost more than a higher fee beside a strong rate. The reliable test is the amount the recipient receives. See also: margin, markup, intermediary bank, and the guide How to Compare Money Transfer Providers.