If I google the exchange rate from one currency to another, it shows a much better rate than what I would get in a bureau de change for the same amount of money. Why are these two rates so different?

Question

If I google the exchange rate from one currency to another, it shows a much better rate than what I would get in a bureau de change for the same amount of money. Why are these two rates so different?

In: 24

Answer 1

Per-transaction fees are one way to make money. This is another way — rate spread. Charging per transaction is good when your business is high volume, but small dollar-value transactions. Charging a spread is good when your business is lower-volume, but higher-dollar transactions.