Wise Money Transfer: Features, Pros, and Cons

Sending money abroad is rarely as straightforward as one would hope. What is more, some transfer methods have such exorbitant fees that you might waste hundreds of dollars per transaction. The good news is that there are transfer services specifically designed to reduce costs.

Wise is one such option — a service that claims to make international transactions cheap without making them inconvenient. Is Wise money transfer legit, though? In this article, we will discuss its features and fees so that you can make an informed decision.

Is Wise the Right Choice for You?

Most Wise money transfer reviews seem to agree that there are specific categories of users who can benefit from this service the most. You’ll be able to get the most from a Wise prepaid card or account if:

• You travel frequently, whether for work or other purposes.
• You’re an international student who needs to regularly receive money from home.
• You run a business and need to pay employees, distributors, or vendors based in other countries.
• You run a business, and often receive payment from clients living abroad.
• You want to shop online on international platforms and/or in a different currency.

If you fall into any of these categories, it may be a good idea to consider adding a Wise account to your financial arsenal.

Key Features of Wise

Before you set up your Wise account, it’s a good idea to learn more about its main features.

Wise Debit Card

Unlike other similar services, Wise gives you the option to order a physical debit card. There's no subscription fee, just a one-time $9 issuance payment. Once you have the card, you can use it to transfer any of the supported currencies available in your account.

This card is useful for anyone traveling abroad, as it allows you to conveniently convert money to local currencies. At the moment, you can use the Wise debit card in more than 70 countries.

When it comes to transaction limits, the daily ones are:

• Online payment: $1,000 default — $2,000 maximum;
• Chip or PIN payment: $1,000 default — $2,000 maximum;
• ATM withdrawal: $250 default — $1,000 maximum;
• Contactless payment: $200 default — $400 maximum.

The monthly limits are:

• Online payments: $2,000 default — $15,000 maximum;
• Chip or PIN payments: $5,000 default —  $15,000 maximum;
• ATM withdrawals: $1,500 default — $6,000 maximum;
• Contactless payments: $1,500 default — $4,000 maximum.

Wise Multi-Currency Account

As the name suggests, this account allows you to receive, send, and save money in different currencies. How does Wise money transfer work when using this account? First, you have to create a balance for a specific currency, then make a payment in your local currency. The sum will be converted according to the interbank exchange rate.

Wise multi-currency account supports more than 50 currencies, and you can use it to make payments both online and offline. It is also possible to link the account to your Wise debit card.

Wise Interest

Wise Interest is another feature often mentioned in Transfer Wise reviews. By using this optional service, you can earn interest on balances in EUR, USD, or GBP. Also, your returns are added to your balance every day, so you don’t have to wait to use them.

However, you’ll have to pay some fees on your interest, with the amount determined by your currency of choice. For EUR, the annual fee is 0.27% of the amount you hold, while saving in USD will cost you 0.29%. GBP has the highest fee at 0.59%.

The safety of your funds is assured by government-guaranteed assets that Wise holds.

Wise Pricing Structure

Another positive aspect often mentioned in Wise wire transfer reviews is the service’s pricing structure. The platform uses a transparent pricing model, so you won’t have to deal with hidden fees.

There are no monthly, annual, or subscription fees when using Wise. The service charges transfer fees, which vary depending on the transaction type and currency, and offer discounts if you send larger sums. Multi-currency account and bank transfer fees start at 0.33% of the amount sent. The recipient doesn't have to pay anything. Note that if you use a credit or debit card, transfer fees may reach up to 4%, depending on the currency or destination.

When you convert money from one currency to another, Wise uses the real-time interbank exchange rate, which can vary depending on the day. However, there are zero markups, so the rate remains reasonable most of the time.

Wise Pros and Cons

Now that you have the answer to “What is Wise money transfer?”, let’s summarize the main pros and cons of this service.

The benefits that you get include:

• Transparent and reasonable fees. This service doesn’t have hidden fees, and its pricing structure is remarkably transparent.
• Plenty of payment options. You can choose a transfer method that best suits your needs: debit card, Wise account, or bank transfer.
• Multi-currency account. Right now, Wise supports payments in over 50 currencies.
• Interbank exchange rates. Wise uses interbank exchange rates without any additional markup.
• Widespread availability. You can use your Wise card in more than 71 countries. You won’t have to use cash abroad ever again!

As for the disadvantages, we should mention that:

• Customer support can be difficult to reach. During non-business hours, your options are limited to writing an email and hoping for the best.
• Some currencies have higher fees. The fees that Wise may charge vary significantly depending on the currency.
• Fixed exchange rates have a limit. The interbank exchange rate stays fixed for no more than 48 hours. This means the rate can change if your transfer is taking more than several days.

So, TransferWise: is it safe and affordable? Yes, it definitely is, and it offers plenty of benefits as well.

Bottom Line

To sum up this Wise transfer review, it is clear that the service is convenient and reasonably priced despite having some drawbacks. It is a good way to receive and send money internationally at reasonable fees. Wise also uses the interbank exchange rates, which is a significant advantage. Finally, you can use a physical Wise debit card while traveling instead of relying on cash.