Does zero FX markup mean zero FX cost?

How do you verify a zero-markup promise?

• Name the reference-rate source and fixing time.
• List the currency pairs and payment methods covered.
• Confirm the markup is zero in the contract, including exceptions.
• Request every separate conversion and payment fee.
• Reconcile a sample invoice to the agreed calculation.

“No FX fee” is not precise enough on its own. Ask whether it refers to an explicit line-item fee, the exchange-rate markup, or both.

When can a higher monthly fee still cost less?

In our fictional 20-employee example, a $399 monthly service fee plus 2% on $100,000 of monthly converted payroll costs $119,760 per year in provider charges. A $449 service fee with zero markup costs $107,760, before any other provider charges. The difference is $12,000.

This does not establish which supplier is best. Enter all applicable fees, use equivalent service scope and validate each quote. Employment compliance, payroll reliability and country coverage still need to meet your requirements.

Make the claim measurable

Ask: “For each currency pair, confirm the reference rate, fixing time, calculation base, markup and every additional conversion or payment charge. State the exceptions and provide the proposed contract wording.”

A claim is comparable only when its conditions are visible. If a provider cannot document the basis, leave the FX cost unconfirmed rather than assuming savings.

Sources & calculation basis

The buying checklist and examples are EOR Truth’s analysis. Examples are illustrative, not observed supplier prices. See our calculation methodology and editorial standards.