Financial institutions like banks add a margin known as the "spread" when exchanging currency. This means that, for example, when we exchange euros for dollars, a higher USD-EUR exchange rate is applied, and when converting dollars back to euros, a lower USD-EUR exchange rate is used.

While the exact spread can vary slightly between financial institutions, most apply a spread of around 2-5% for cash exchanges and 1-2% for wire transfers (done through apps or online banking).

For example, if the USD-EUR exchange rate is 1.00, with a cash spread of 2% applied:

• When you buy dollars from a bank (EUR → USD), you would pay 1.02 euros per dollar.
• When you sell dollars to a bank (USD → EUR), you would receive 0.98 euros per dollar.

Typically, when banks offer an "exchange rate discount," it refers to a preferential rate applied to this spread. If your bank only mentions the preferential rate without explaining the spread, be sure to ask them about the spread amount.

You can add and compare multiple exchange and remittance methods. Click the '+' next to 'Exchange and/or Remittance Method' to add as many options as you like and compare them.