Freelancer lens: Cross-border invoices add a currency risk that no rate on a quote page removes. If you invoice in euros and receive dollars three months later, the mid-market rate you quoted is not the rate you will be paid, so keep a 3-5% buffer inside the price and convert on the day the money lands. Price long contracts in your own currency whenever you can, and watch the conversion spread on the payout method, which is often larger than the exchange-rate move itself over a small invoice.
The most expensive ATM you can use
A single $200 ATM withdrawal in a foreign airport, on the wrong card, can cost $14 in combined FX markup and ATM fee — that's 7% of the principal. Online remittance services are typically 0.4–0.8% because they pass through the mid-market rate and charge only a small fee. The "right" channel for a $200 transfer is the same as for a $20,000 transfer, but the cost matters much more for the small one.
FAQ
Is the "mid-market rate" what I should use for invoicing?
For valuation and accounting, yes — it's the most defensible. For actual settlement, you need to use the rate your bank applies, which is mid + spread + any fees. International contracts usually specify a reference (e.g. "the rate published by the European Central Bank at 14:15 CET on the day before payment") to avoid ambiguity.
Why is the card rate worse than the bank wire?
Because the card network (Visa, Mastercard) charges the issuer a fee, and the issuer often keeps the FX spread on top. The bank wire has fixed costs but a smaller percentage markup. For large transfers, a wire is almost always cheaper. For small one-off purchases abroad, a no-FX-fee card is competitive.
What about crypto as a transfer?
For some corridors, especially cross-border remittance, USDT/USDC routed through a licensed on/off-ramp is now competitive with Wise or Revolut, and faster. It introduces custody, counterparty, and tax-reporting complexity that this tool doesn't model. Treat it as a separate decision, not a default.
Methodology
Mid-market rates are illustrative cross-rates via USD using public reference snapshots. The channel slippage is added as a percentage markup over the mid-market rate, plus any flat fee. Bank wire: 2.5% + $35. Card: 3.0%. ATM: 2.0% + $5. Remittance: 0.5% + $1. The "hidden cost" is the difference between the mid-market-equivalent amount and what the recipient actually receives, expressed in the sending currency. Source: BIS Triennial Survey average FX margin by channel.