Why can a zero-fee transfer deliver less money?

Zero fees may cover just one charge

A zero-fee offer is easy to read as a cheaper transfer. But the exchange rate, payment method and deductions by intermediaries or the receiving bank can also affect the cost. The advertised zero may not cover them.

If your budget is US$1,000, include the sending fee within that budget. Compare the same total spend and receiving currency to see which quote delivers more.

Source: CFPB：Send money abroad with more confidence

With a US$1,000 budget, which quote delivers more?

These are hypothetical quotes to explain the calculation, not current rates or provider offers. Both options cost US$1,000 in total, with no other charges assumed for now.

A receiving fee can change the result

Option B delivers NT$141 more in the table. If B then incurs a NT$150 receiving charge, the recipient gets NT$31,491, which is NT$9 less than A.

That makes the quoted receive amount worth examining: does it include receiving charges? If a charge is still unknown, the difference between the quotes is not yet a final result.

Compare quotes on the same terms

Exchange rates move, and payment methods can change the fees. Use quotes from around the same time, the same sending and receiving currencies, and a fixed total budget.

If the recipient needs an exact amount, reverse the comparison: hold the receive amount constant and compare what you pay. Include known deductions and leave unconfirmed charges as unknown rather than assuming zero.

Source: CFPB：Send money abroad with more confidenceCFPB：Why the amount received may be less

Try the numbers or watch the example

Compare your own transfer quotes or watch the 32-second worked example.