Understanding Exchange Rates
Get the most out of currency conversion by understanding how rates work.
What is an Exchange Rate?
An exchange rate is how much one currency is worth in another. For example:
- 1 USD = 0.92 EUR means $1 gets you €0.92
The Mid-Market Rate
The mid-market rate (also called the "real" rate) is:
- The midpoint between buy and sell rates on global markets
- What you see on Google or XE.com
- The fairest rate available
ClapPay uses the mid-market rate as our base rate.
Our Fees
We add a small, transparent markup to the mid-market rate:
| Currency Pair | Our Fee |
|---------------|---------|
| Major pairs (USD/EUR, EUR/GBP, etc.) | 0.5% |
| Exotic pairs | 1.0% |
Example
Converting $1,000 USD to EUR:
- Mid-market rate: 1 USD = 0.92 EUR
- Our fee: 0.5%
- You receive: €916 (after 0.5% fee)
How We Compare
| Provider | Typical Markup |
|----------|----------------|
| ClapPay | 0.5% |
| Banks | 3-5% |
| Credit cards | 2-3% |
| Airport exchanges | 5-10% |
When Rates Update
- Rates update every few seconds during market hours
- The rate you see at confirmation is the rate you get
- Rates are fixed for 30 seconds during your transaction
Tips for Better Rates
- Convert larger amounts - Same percentage, more value
- Time your conversion - Rates can change throughout the day
- Use rate alerts - We'll notify you when your target rate is hit
- Avoid weekends - Rates are fixed Friday-Sunday and may be less favorable
Locked Rates
When you confirm a conversion:
- The rate is locked for 30 seconds
- Complete your transaction within this time
- If you wait too long, you'll see an updated rate
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