Brazil’s “VET Law” Incomplete on FX Rates, Risks Hidden Markups
Although Brazil’s VET law requires fees to be disclosed since 2022, it does not mandate using the true mid-market rate. This loophole has allowed providers to embed hidden markups into their own exchange rate settings. As a result, currency conversion costs remain obscure, and transparent price competition has not materialized.
Brazil’s diaspora — around 4.4 million strong — sends remittances home frequently. Achieving true transparency could dramatically reduce costs to both senders and recipients. Global institutions like the World Bank argue that clearer disclosures are essential to reducing remittance costs below the UN’s 2030 goal of 3% — Brazil currently ranks second-highest in the G20, at approximately 7.61%.
DogPay’s Transparent Framework—Putting Control Back in User Hands
Against this backdrop, DogPay introduces a user-centered, transparent remittance model to counter prevailing opacity:
- Mid-Market Rates Upfront: Users see the actual interbank rate used—no hidden markups built into exchange rates.
- Fully Disclosed Fees: All fees—FX cost, taxes, service charges—are plainly visible before confirming a transaction.
- Comparison Made Easy: Clear presentation of total costs and service routes enables informed decision-making and better market competition.
- Inclusive Cross-Border Support: Perfect for families sending funds internationally—education, living expenses, or small business needs—all at visible costs with no surprise markups.
DogPay stands firmly behind the principles of transparency, fairness, and trust, offering a payment experience free of hidden traps and promoting a fairer remittance ecosystem.
