February fee review — here’s what’s changed
This blog post is to update our customers about changes in price and is not a marketing communication. Our mission is to lower the cost of moving money across...
World Consumer Rights Day: calling time on hidden fees
On this World Consumer Rights Day, we call time on hidden fees: let’s make sure you know what you pay. This is crucial, because consumers unknowingly lost $79 billion (£62 billion) whenever they sent or spent money internationally in 2024 in so-called exchange rate markups. If we don’t act, that number will increase to $137 billion (£108 billion) by 2029.
What are hidden fees?
When you send or spend money in a different currency, your provider might tell you that transaction is “free”, “0% commission” or a fixed low cost. What they don’t tell you is that you’re not getting the real exchange rate, but a highly inflated one. Your provider’s exchange rate can be just 1% worse or 10% worse, but you’re getting stung either way. The worst part is that they don’t usually mention this to you…
Governments and institutions want change
These hidden fees keep the cost of cross-border payments high. But these money flows are often vital to support friends & family in other countries with basic needs like education, healthcare and food. So it’s no wonder these high costs have long been a global concern, with the United Nations Sustainable Development Goal (UNSDG) aiming to lower fees to 3% by 2030 for remittances, and G20 Governments aiming to lower the cost of other cross-border payments to 1% by 2027.
While it’s great to see global momentum behind solving this massive issue, the rate of progress is pretty underwhelming. According to the World Bank, the average cost to send remittances was 6.65% in Q2 2024. When the UN SDG of 3% was launched in 2015, the global average was 7.52%. We haven’t even dropped a full percentage point in nearly a decade!
Governments will need to feel the heat of the impending deadline in order to act. Most Governments in the G20 are not on track. We have given them a score from 1-5, depending on how transparent they are and what action they’re taking to ban hidden fees.
If you’re interested in reading more about what action governments around the world are taking on transparency, read our report here.
Time is running out.
For governments who haven't started to close this transparency loophole, work should start now. Policymakers should promote transparency to meet their international goals. Some are leading the way and making real progress. The EU is in the process of requiring firms to disclose these hidden exchange rate markups. The UK regulator is also doing a market study into whether companies are transparent in their cross-border payments pricing. It’s vital that other countries follow suit.
We won't stop advocating for change until transparency is the global gold standard. We have campaigned on this issue for years, but the scale of the problem only keeps increasing. Recently commissioned data shows exactly this: consumers are losing billions and those losses are only going to go up unless we act.
Here is how much consumers lost in hidden fees in 2024:
Research by Edgar Dunn & Company, September - November 2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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