By: Money Navigator Research Team
Last Reviewed: 05/02/2026
FACT CHECKED
Quick Summary
Tide’s FX conversion for international payments is described as using an interbank exchange rate basis and applying an FX markup that depends on your plan, with the live rate and the FX markup fee shown before you confirm a transfer.
The key practical point is that the “rate” and the “cost of conversion” are not always the same thing, and the conversion may be performed by a bank outside Tide in some receiving scenarios.
This article is educational and not financial advice.
What “Tide FX rate” actually means for international payments
When people talk about an “FX rate” on an international payment, they usually mean one of two things:
The conversion rate used (how one currency is converted into another), and/or
The conversion cost (often shown as a markup/spread or a separate FX fee).
Tide’s help content separates these ideas by showing a live exchange rate and a fixed FX markup fee on the confirmation screen for EUR SEPA payments, alongside the total in GBP (as described in Tide’s EUR SEPA sending flow). You can see this described in How do I send euro payments via EUR SEPA?.
This matters because a payment can look “fee-free” in one place while still being more expensive than a reference rate elsewhere, purely due to FX markup.
How Tide says the conversion rate is determined
1) Interbank-rate basis (Tide’s stated reference point)
For both USD and EUR conversions in its international payment flows, Tide states that it uses “the current interbank exchange rate of the day” and then applies an FX markup. See Tide’s explanation for USD payments and for EUR payments via EUR SEPA.
Separately, the Bank of England publishes daily spot rates and notes these are not “official” and are no more authoritative than commercial-bank rates. That’s a useful reminder that many “reference rates” exist and can differ by purpose and timing (see Bank of England exchange rates).
2) Plan-based FX markup (the conversion cost component)
Tide states that it applies a 1.5% FX markup, reduced to 0.5% for paid plan members, and presents this as an FX markup fee in the payment flow for USD and EUR conversions (see Tide’s USD FX rate explanation and EUR FX rate explanation).
This is separate from (and can be more material than) any per-transfer provider fee. If you want a broader map of where provider fees and bank-chain fees can sit, see Tide international transfer fees explained.
3) When the rate is shown and how often it refreshes
Tide states the exchange rate is shown in the flow once the amount is entered, and that it updates automatically every 30 seconds for USD and EUR conversion screens (see Tide’s USD FX rate explanation and EUR FX rate explanation).
For EUR SEPA specifically, Tide also states you’ll see a live exchange rate and a fixed FX markup fee together on the confirmation screen (see How do I send euro payments via EUR SEPA?). “Fixed” here refers to the fee shown for that transaction at that point in time, even though the underlying live rate can refresh.
When Tide’s rate is not the rate that matters
There are scenarios where the conversion is not performed by Tide at all, meaning a different institution’s rate governs what the recipient ends up with.
A common pattern is: the money arrives in a foreign currency and the recipient’s bank converts on receipt.
Lloyds, for example, explains that incoming payments are processed using its standard exchange rate and converted when received, and that this standard rate includes a margin compared with the wholesale rate (see Lloyds: receive international payments).
That distinction (who converts and when) is one reason two parties can look at the “same payment” and disagree about whether the FX rate was “good” or “bad”: they may be talking about different conversions.
Summary Table
| Scenario | Outcome | Practical impact |
|---|---|---|
| Tide converts GBP to USD/EUR in the payment flow | Live exchange rate is shown and refreshes; FX markup fee is shown | Total conversion cost is the live rate plus the FX markup fee shown before confirmation |
| Recipient bank converts on receipt | Recipient bank’s exchange rate (and any margin) is applied | Amount received in the account currency can differ from any sender-side reference rate |
| FX markup is reduced on certain plans | Lower FX markup percentage is applied | The same payment amount can have a different FX cost depending on plan terms |
| Rate refreshes during entry | The displayed conversion rate changes over time | The shown cost can change between starting and confirming a payment |
| Payment is rejected and returned | Return conversion may use the rate available at return time | The returned amount can differ from the original outgoing amount purely due to FX movement |
Scenario Table
| Scenario-level | Process-level | Outcome-level |
|---|---|---|
| Tide performs conversion for an international payment | Tide uses an interbank-rate basis and applies an FX markup; rate display refreshes during entry | The transaction shows an exchange rate plus an FX markup fee at confirmation |
| Conversion is performed outside Tide | Recipient bank converts funds when they are received using its own rate (which can include a margin) | The credited amount depends on the recipient bank’s rate at receipt, not the sender-side reference |
| Payment returns after rejection | Return processing applies the rate available at the time of return | Returned funds can differ from the original amount even without additional provider fees |
| Business compares against a public reference rate | Reference rates vary by source, time, and purpose | “Difference vs Google/BoE” does not automatically identify which institution converted the funds |
Practical implications: reconciling FX on Tide international payments
The “rate” and the “markup” are both part of the conversion outcome
Tide’s international payment screens and help content make it clear that conversion is presented as an exchange rate plus an FX markup fee (see EUR SEPA send flow and Tide’s USD FX rate explanation). That means reconciliation is rarely just “compare the rate”.
The payment rail can change what “conversion” even means
In Tide terms, international payments commonly involve EUR via SEPA and USD via ACH, while SWIFT is relevant to receiving certain international payments in GBP (as described in Tide’s own international payments overview).
Rail choice affects which currencies are involved and when conversion occurs, which is why the same business can see different FX behaviours across payment types. For rail-level mechanics, see SWIFT vs SEPA vs ACH.
Details and timing can matter operationally, even when FX is “correct”
On the EUR side, SEPA processing and cut-offs can affect when a payment is executed and therefore which live rate is seen at confirmation.
For Tide-specific SEPA timing and common error patterns that can trigger delays, see Tide SEPA payments explained: timings and common errors. For USD availability constraints and how the USD feature is structured, see Tide USD payments via ACH explained.
Tide Business Bank Account
Tide’s pricing and feature structure can affect what is shown in-app for international payment conversion (including how the FX markup fee is presented), but it cannot prevent a recipient bank from applying its own conversion rate if the recipient bank is the one converting funds on receipt.
For a neutral overview of Tide’s account positioning and plan structure in the UK business banking market, see our Tide business account review.
Frequently Asked Questions
Tide describes the reference point as “the current interbank exchange rate of the day” for both USD and EUR conversions, and then applies an FX markup (see Tide’s USD FX rate explanation and EUR FX rate explanation).
“Interbank” is a term used to indicate a wholesale-market basis rather than a retail counter rate. Public reference rates also vary: the Bank of England publishes daily spot rates and explicitly notes these are not official and are no more authoritative than commercial-bank rates (see Bank of England exchange rates).
No. Tide describes a percentage FX markup as part of EUR and USD conversion and presents it as an FX markup fee in the flow (see Tide’s USD FX rate explanation). A per-transfer “transfer fee” can exist separately depending on plan and product, and Tide’s flow can show both items.
This is why an international payment can have a low or zero “transfer fee” but still have a meaningful FX cost. For a broader breakdown of fee layers (provider fees versus bank-chain fees), see Tide international transfer fees explained.
For EUR SEPA payments, Tide states that after entering the amount and recipient details, it shows a live exchange rate and a fixed FX markup fee on the same screen, along with the payment total in GBP (see How do I send euro payments via EUR SEPA?).
For USD and EUR conversion screens, Tide also states the exchange rate updates automatically every 30 seconds while you are viewing the quote, allowing you to see changes in real time (see Tide’s USD FX rate explanation and EUR FX rate explanation).
Foreign exchange prices move throughout the day, and Tide states that the displayed exchange rate refreshes automatically every 30 seconds on its USD and EUR conversion screens (see Tide’s USD FX rate explanation).
This means two quotes for the same currency pair can differ if they are taken at different times, even minutes apart. It also means screenshot comparisons can be misleading if they are taken at different points in the flow or at different timestamps.
Yes, if the recipient’s bank is the one performing conversion into the recipient’s account currency on receipt. In that situation, the recipient bank’s own exchange rate and any built-in margin drive the final credited amount.
Lloyds, for example, explains that incoming payments are processed using its standard exchange rate and converted when received, and that its standard rate includes a margin compared with the wholesale rate (see Lloyds: receive international payments). That illustrates the general mechanism: the institution doing the conversion determines the rate applied.
Public reference rates are not a single universal truth. The Bank of England notes its published exchange rates are not official and are no more authoritative than commercial-bank rates (see Bank of England exchange rates). Different sources use different sampling times, methodologies, and purposes.
Separately, some published rates are purpose-specific rather than payment-execution rates. HMRC publishes monthly exchange rates for customs valuation purposes on the UK Integrated Online Tariff site (see HMRC monthly exchange rates). Those rates can be useful for the context they provide, but they are not designed to mirror a live payment conversion quote.
Yes. Tide states that after making the payment you can see the exchange rate used again by tapping on the transaction in your timeline, and that the same applies for received payments by tapping the transaction (see Tide’s USD FX rate explanation).
That matters for audit trails and reconciliation because it separates “what was quoted” from “what was actually applied”. It also provides a consistent place to retrieve the FX details that were used for that specific transaction.
Tide states that for rejected outbound payments it will apply the exchange rate available at the time of the return, and that the returned amount might therefore be different (see Tide’s USD FX rate explanation and EUR FX rate explanation).
This is an FX timing issue rather than an error by itself: the return is a separate event happening later, potentially under a different market rate. For related handling of fees versus reversals in Tide’s wider charging logic, see Tide refunds of fees explained.
The direction of a payment helps determine who is likely to do the conversion and where the FX information appears (sender-side quote versus recipient-side credit). Even when the same currency pair is involved, the conversion point can shift depending on product design and the receiving bank’s account currency.
Within the Tide context, differences in charges and how they appear across directions can also complicate “all-in cost” comparisons. For Tide-specific context on how charges can differ between directions, see Tide incoming vs outgoing transfer charges.
The FCA has published examples of good and poor practice in international payment pricing transparency. The FCA indicates good practice includes clearly showing the exchange rate applied and clearly explaining when a conversion rate includes a markup, with markups communicated as a cost (see FCA international payment pricing transparency examples).
In practical terms, this framing is relevant because international payment costs can combine variable FX effects with fixed/variable fees and third-party charges. A transparent breakdown helps distinguish “rate movement” from “markup” and from “bank-chain deductions”.
There are three separate levers that determine what “FX rate” someone experiences on an international payment:
- Who performs the conversion
- What reference point that converter uses
- What markup or margin is applied on top
Tide’s documentation is relatively explicit about two of these levers in its own flow (interbank-rate basis and plan-based FX markup), but the “who converts” question can still shift to a recipient bank depending on how funds are received and credited.
Most confusion comes from treating FX as a single number. In reality, the outcome is a bundle: the displayed conversion rate at the point of confirmation, the markup (often expressed as a fee or margin), and the timing of execution (including returns).
Separating these elements makes it easier to understand why two screenshots, two statements, or two counterparties can be describing different parts of the same payment.
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