Is it a good option to use TransferWise as a money transfer provider? Get the full scoop here.
TransferWise is the newest company that is trying to disrupt the money exchange industry. Their profile is pretty high, with owners like Richard Branson and although their headquarters is in London, they do a lot of business in the US and have spread worldwide.
- This is a data driven and tech-based company, therefore, the online experience is top notch.
- TransferWise prides itself in being transparent and offering competitive exchange rates.
- Using our comparison tool you can compare foreign exchange rates, fees and services of other providers.
What we’ll cover:
The most important takeaways of this article are whether or not TransferWise is safe and if you should use them. In the following, we’ll touch on:
- The history and origin of TransferWise.
- What fees should you expect with TransferWise?
- How to send and receive money overseas with TransferWise.
- Is TransferWise recommended? Detailed pros and cons.
The history and origin of TransferWise
TransferWise was founded by Kristo Käärmann and Taavet Hinrikus who were looking to send money from the UK back to their native Estonia. They thought they could do better than the offerings at the time, and hence TransferWise was born. Since that time, it has spread across Europe and into the US and Australia.
What fees should you expect with TransferWise?
One of the things that are unique about TransferWise is their fee structure. They charge all their customers one fee, which comes in the form of a percentage of each transaction.
The company boasts about having no hidden fees, and they’re telling the truth. They charge a percentage fee (usually around 1%) and best of all they are giving you the market exchange rate. For more information click here.
TransferWise offers customers the mid-market exchange rate to offer for transferring money between countries. This rate is what you’ll see on xe.com or Google currency checker . However, this practice is somewhat unheard of among other money transfer providers.
Your exchange rate is guaranteed as long TransferWise receives your money in 24 hours and they are committed to matching any better price you find elsewhere.
How to send and receive money overseas with TransferWise
To use TransferWise you’ll need to take a few minutes and set up an account. This includes inputting basic information, selecting which type of transfer you want to make, confirming your identity and verifying the account.
It’s important to note that you must set up your TransferWise account with the same name as the bank account you intend to fund any transfers with.
How Do I fund a transfer?
You cannot pay TransferWise with cash or check. For most currency transfers, a direct bank transfer or credit or debit card payment is the best option. When it comes to doing some transfers into Euros, you can use SOFORT. For full, details click here.
Can I pay with a credit card?
You can pay for a transfer with a credit card, but currently, the only currencies accepting this are GBP, USD, EUR, AUD, NZD, CHF, PLN, NOK, SEK, and DKK.
Be aware that, although it can seem easy paying your funds using a credit card, this does carry an additional handling fee of 0.3% for GBP, DKK, NOK and SEK, 0.4% for EUR, 0.5% for PLN, as well as 2% for both AUD and NZD. You may also be subjected to any fees levied by your card issuer.
Visa and Mastercard are both accepted, but AmericanExpress is currently not. As we mentioned in the statement above, to successfully fund a transfer with a credit card the name on the card must match the TransferWise account.
For any other information you might need, TransferWise has a very helpful FAQ section.
Available Currencies and Countries
AED, AUD, BGN, BRL, CAD, CHF, CLP, COP, CZK, DKK, EUR, GBP, GEL, HKD, HUF, IDR, INR, JPY, MAD, MXN, MYR, NGN, NOK, NZD, PHP, PKR, PLN, RON, SEK, SGD, THB, TRY, UAH, USD, ZAR
TransferWise as a money transfer provider – Is it recommended?
Pros of using TransferWise as a money transfer provider::
- Simple and transparent fee structure.
- Guaranteed exchange rates equal less risk.
- Great online experience.
- Many different options for funding transfers including credit cards.
Cons of using TransferWise as a money transfer provider:
- You cannot pay with cash or check.
- Being a new player in the currency exchange market TransferWise does not support as many currencies as some other providers.