The true cost of sending money abroad
March 2026·4 min read
When you compare money transfer services, you probably look at the fee. "$3.99 fee" sounds better than "$7.99 fee", right?
But here's the thing most people miss: the exchange rate markup is where traditional services make their real money.
A real example
Let's say you're sending $500 USD to Nigeria. The real mid-market rate is 1 USD = 1,620 NGN.
| Service | Fee | Rate offered | Recipient gets | True cost |
|---|---|---|---|---|
| Wise | $3.69 | 1,605 NGN | ₦796,880 | $8.32 (1.7%) |
| Western Union | $7.99 | 1,560 NGN | ₦767,520 | $26.48 (5.3%) |
| PayPal | $4.99 | 1,550 NGN | ₦766,750 | $27.22 (5.4%) |
| Rare Swap | $4.50 | 1,620 NGN | ₦802,710 | $4.50 (0.9%) |
The "cheap" services aren't cheap at all. A 2% exchange rate margin on $500 is $10 — hidden in plain sight.
At Rare Swap, we show you the real mid-market rate and charge a transparent 0.9% fee. What you see is what you pay. No margins. No surprises.