Why you can't just look at an exchange rate
The money transfer industry uses a whole raft of terminology when it comes to fees - spreads, tips, service fees, admin costs and the list goes on. All of which affect the real exchange rate you get and not the headline one you may have been quoted.
Uncovering the fees you pay is, therefore, extremely complex, which means understanding them is of paramount importance.
For many people the exchange rate is the only thing that they will look at, unaware of the other charges that they will incur with some companies. Let's look and see why the exchange rate is not the only thing you should take into account.
John needs to buy 100,000 USD to settle an invoice he has.
He has been shopping around for the best rate to buy some USD with his ZAR and has two sets of exchange rates from which he must decide.