An FX markup is the adjustment a provider makes to a reference exchange rate when quoting a customer rate. It can be part of the price of currency conversion even when the transfer fee is low or zero. The useful comparison is the total debit and expected Recipient amount at the same moment.
How is an FX markup calculated?
For a direct quote such as PHP per USD, one comparison formula is:
FX markup percentage = (Reference rate − Customer rate) ÷ Reference rate × 100
Suppose a timestamped reference rate is 62.50 PHP per USD and the customer rate is 61.875. The difference is 1%. Converting USD 10,000 produces PHP 618,750 instead of the PHP 625,000 reference-rate amount, before separate charges. This is illustrative arithmetic, not a current rate or provider quote.
| Pricing element | How it appears | What to record |
|---|---|---|
| FX markup | Difference between the stated benchmark and customer rate | Benchmark source, timestamp and quote direction |
| Transfer fee | Separate fixed or percentage charge | Fee amount and currency |
| Other deductions | Intermediary or receiving charges | Who bears them and whether the amount is known |
Markup, spread and market movement
An FX markup is not the same as every difference between two rates. The market may move between timestamps, and a bid-ask spread describes the gap between buy and sell prices. Compare quotes captured close together, in the same direction and for the same amount, Recipient and payout method.
Read the mid-market exchange rate page for the benchmark calculation and FX spread for the broader rate-gap terminology.
Where Quotable Payments fits
Quotable Payments can show eligible businesses the applicable rate, disclosed fees and estimated Recipient amount for an approved route. Pricing and availability depend on the business, currency pair, amount, Recipient and jurisdiction.
For a complete comparison, use the total transfer cost, not the transfer fee alone.
