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Yes they do. This is usually the difference in the current value of the dollar with respect to the Euro and the Euros they offer you. For ex: if 1 dollar = 0.85 Euros and if you convert 1000 dollars, the bank might give you only 840 euros. They are paying you only 0.84 Euros per dollar whereas the market rate is 0.85 Euros per dollar. This is the fee they charge you for the conversion

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