FX Markup
The hidden fee banks and payment platforms add on top of the real exchange rate when converting currencies. Typically 1.5-4% for Indian freelancers.
What is FX Markup?
FX markup (foreign exchange markup) is the difference between the mid-market rate and the rate a bank or payment platform actually gives you when converting currencies. It's essentially a hidden fee baked into the exchange rate.
How Much Do Indian Freelancers Lose?
Typical FX markups for different platforms:
| Platform | Typical FX Markup |
|---|---|
| Indian Banks (wire transfer) | 1.5-3% |
| PayPal | 3-4% |
| Payoneer | 2-3% |
| Wise | 0.6-1.5% |
| FaiirPe | 0% (zero markup) |
On a $5,000 monthly invoice, a 2% FX markup costs you approximately ₹8,350 per month or ₹1,00,200 per year.
Why It's Called "Hidden"
FX markup is hidden because it's not shown as a separate line item. Your bank simply gives you a lower exchange rate than the mid-market rate. Most freelancers never realize they're paying it.
For example, if the mid-market rate is ₹83.50 per dollar but your bank gives you ₹81.83, the ₹1.67 difference per dollar is the FX markup - and it adds up fast.
How to Avoid FX Markup
Use a platform like FaiirPe where your USD is converted by our banking partner with zero FX markup from FaiirPe. The only fee is 0.3% per invoice, with a minimum fee of $9.
Related Terms
- Mid-Market Rate - the fair exchange rate without markup
- SWIFT Transfer - international wire transfers that often include FX markup
Tired of losing money on every international payment?
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