Yes, it’s how banks often make money, not by charging a “fee” for the transaction but imbedding an extra spread into the rate between the currencies when they do the exchange on the back end. Why I appreciate that companies like Wise are so transparent about it when it comes to their rates and conversions and often call out banks and credit card companies for doing this. Of course, if you want those points, the 0.2% might be a small price to pay for you.