Remittances 101: the words every sender should know

The money transfer world loves a bit of jargon, and some of it is there to keep the real cost fuzzy. Here's the plain-language version of the words worth knowing.

The cost words

Mid-market rate. The real exchange rate, the midpoint banks use with each other. Your benchmark for everything.

Exchange rate margin. The gap between the mid-market rate and the rate you're given. A fee wearing a different coat. We pull this one apart in the exchange rate markup.

Upfront fee. The flat charge shown before you send. Honest, but usually only part of the cost.

The movement words

Payout method. How the money reaches the recipient: cash pickup, bank deposit, or mobile wallet.

Settlement. The behind-the-scenes step where funds actually move between institutions. Often what you're waiting on when a transfer is "pending."

Corridor. A specific send-to-receive route. Costs and speed vary a lot from one to the next.

The safety words

KYC. "Know your customer," the identity checks a service runs on you. Mildly annoying, genuinely protective.

Licensed and regulated. The service answers to a financial authority. Worth checking before you trust anyone with your money, as we cover in sending money safely.

Know these ten and most fine print stops being fine print.