Bank vs Wise vs PayPal: the real cost of sending money abroad

When you send money abroad, the total cost is fees + the exchange-rate markup. The advertised fee alone can be misleading, because the bigger cost is often hidden in the rate.

Traditional banks

Bank wires usually combine a flat fee (often $15–$50) with an exchange-rate margin of several percent, plus possible intermediary-bank fees. Convenient if you are already there, rarely the cheapest.

PayPal

PayPal is fast and familiar, but its currency conversion typically adds around 3–4% above the mid-market rate on top of transfer fees — significant on larger amounts.

Wise and similar specialists

Money-transfer specialists generally use the real mid-market rate and charge a small, upfront percentage fee, which they show separately. For most cross-border transfers this is the cheapest and most transparent option.

The rule of thumb: compare the amount that actually lands in the recipient's account, not the headline fee.