10.01.06 Appleseed and Chicago Appleseed Release Report Detailing the "Fair Exchange" Pilot Program
Appleseed, along with industry leaders GroupEx, Mitchell Bank, Viamericas, Wells Fargo, and other partners announced an important new initiative that provides immigrants who send money to their native countries with clear, up-front information on remittance fees and exchange rates. The project is part of Appleseed's effort to establish a "Fair Exchange" brand, similar to Fair Trade (TM) branded coffee that would make it easier for consumers to shop for the best remittance deals and reward transparent market players with greater market share.
The pilot launch follows up on Appleseed's December 2005 report, "Creating a Fair Playing Field for Consumers: The Need for Transparency in the US-Mexico Remittance Market," which revealed that remittance pricing structures of many firms, particularly with regard to exchange rates, often made effective comparison shopping cumbersome for consumers. Receipts for remittance transactions currently include some pricing disclosures, but there are no consistent standards for disclosures prior to initiating a transaction.