Jargon, decoded

Money transfer jargon, in plain English

Last updated: 18 September 2026

Mid-market rate

The midpoint between the price banks buy a currency at and the price they sell it at, on the open market. It's the rate you see on Google or XE, and it's the fairest benchmark for what a currency is really worth at that moment.

Why it matters: No consumer gets the mid-market rate exactly — every provider adds a margin on top. But it's the yardstick: the closer a provider's rate is to it, the less you're paying.

Exchange-rate margin (also: markup, spread)

The gap between the mid-market rate and the rate a provider gives you, usually expressed as a percentage. It's a cost, even though it never appears as a line item.

Why it matters: For most transfers this is where the majority of the cost sits, not in the fee. A margin of 2% on £1,000 is £20 — gone before anything is described as a 'fee'.

Transfer fee

The visible, upfront charge. It can be flat (say £1.99 per transfer) or a percentage of the amount (say 0.5%).

Why it matters: A low fee tells you almost nothing on its own. A provider can charge £0 and take 3% in the rate, or charge £5 and give you the mid-market rate. Only the two together matter.

“No fees” / “Zero fees”

A claim that the transfer fee is zero. It says nothing about the exchange-rate margin.

Why it matters: In practice it usually means the cost has been moved into the rate, where it's harder to see. “No fees” is a description of the invoice, not of the price.

“Best rate” / “Great rate”

A marketing phrase. It may refer to a promotional rate, a rate for a first transfer only, a rate for large amounts, or a rate for a specific payout method.

Why it matters: It's rarely the rate every customer gets on every transfer. The honest comparison is the recipient amount for the transfer you're actually making.

Effective rate

The rate you really got once fee and margin are both accounted for: the amount your recipient received divided by the amount you sent.

Why it matters: This is the only rate worth comparing between providers, because it can't be gamed by moving cost between the fee and the rate.

Recipient amount

The amount of local currency that actually lands in the recipient's account or hand, after everything.

Why it matters: It's the number that matters to the person at the other end, and it's the number Plyna ranks on. Everything else is a component of it.

Promotional / introductory rate

A better-than-standard rate offered to new customers, on a first transfer, or for a limited period. Occasionally it's above mid-market — the provider takes a small loss to win you.

Why it matters: It's real money if you qualify, but it doesn't last. When you see a provider 'beating mid-market' on Plyna, this is almost always why, and we label it.

Payout method

How the recipient gets the money: bank deposit, cash pickup at an agent, or a mobile wallet such as M-Pesa or GCash.

Why it matters: The same provider often quotes different rates and fees for different methods. Cash pickup usually costs more than a bank deposit. Compare like for like.

Corridor

A specific send-country to receive-country pair, such as UK to Nigeria. Pricing is set per corridor.

Why it matters: A provider can be the cheapest on one corridor and the most expensive on another. Being 'good' in general means little — check your route.

Rate lock / guaranteed rate

A promise to hold the quoted rate for a period (often 24–48 hours) once you've started a transfer, so a market move doesn't change what arrives.

Why it matters: Worth checking on volatile currencies. A quote that isn't locked can change between when you look and when the money moves.

Plyna Cost Index

Our daily measure of the gap between the best and worst provider on each corridor we track, averaged across corridors. It's the amount a sender loses purely by picking the wrong provider.

Why it matters: It puts a number on why comparing is worth doing. You can see today's figure on the Cost Index page.