Wise Review
(formerly Transferwise)
Is it Right for You?
Pros
- Is usually very inexpensive
- Transparent fees
- Easy sign up
- Guaranteed rates up to 48 hours
- Fast transfers
- Excellent App
Cons
- May not be the best choice for larger transfers
- Phone support is limited
- Most transactions 100% online
It is easy to find 5-star reviews for Wise however…
The truth is, some people also give 1 and 2-star reviews and there is a lot we can learn from their experiences (below).
For example, if keeping fees low (below) is important it is good to understand ALL the fees and costs.
But successful money transfers are not all about fees.
What you need to know: Is Wise right for you?
In full disclosure, I personally use Wise every week to transfer money, pay others and their card is awesome for travel, especially when you first arrive in a new country. BUT I don’t use them for everything and I want you to know why so you can make the best decision.
Also
In the situations where Wise is not your best option, I will suggest some alternatives and explain why they could work better.
What you REALLY pay
You could be forgiven for thinking that many money transfer companies are not 100% upfront and clear about fees. Unfortunately you would be right to think this way! Quite often the fees that are highlighted are only the tip of the iceberg.
Fortunately, Wise is different.
Possibly the best thing about Wise is that you know exactly how much your transaction will cost you before you even sign up.
This is great because different amounts and different currencies alter the costs significantly.
How to find actual costs
Simply open the Wise calculator, (opens in a new tab) and follow these two easy steps to compare your Wise fees with any other service:
- Start by calculating the fees.
Using the widget from the link above calculate the exact rate you will get and the transfer fee you will have to pay.
Note: The fees you get should be very low below – usually below 1% and often below 0.5%. Remember this is total fees for Wise because when you are comparing with other services you have to consider all the fees including the ones that may not be explicitly mentioned.
2. Add ALL the bank fees
It is clear, while assessing 1000s of 3rd party reviews on website like Trustpilot – people HATE getting hit with unexpected fees. The reality is that banks at both ends can charge a fee which can make up a significant percentage of the total costs. This is especially true if you are moving smaller amounts which is exactly what Wise is great at doing!
Fortunately Wise does a lot to reduce fees. By having local bank accounts around the world the banks usually don’t charge fees. This means when you transfer money to Wise (to fund the transaction) and they transfer these funds to the recipients bank account (to complete the transfer) you save on fees that banks and some money transfer companies have that don’t have these local bank accounts.
The best bit about Wise?
Wise offers what they call the “mid-market rate”, which is basically the same as the interbank rate – or the rate at which banks buy currency.
Simply put, the exchange rate you see on XE, Google or Reuters is the mid-market or interbank rate.
However, that is not the rate that you usually get from a bank or money transfer service. But Wise DOES make all its transfers at the mid-market rate. From this they charge a fee on all transactions, which is a combination of a fixed fee and percentage on the rate.
And this fee is very low. Usually around 0.35% – 1%.
For example, if you work in the UK and need to send some money back home: For a £1000 GBP transfer to Your Country, you will have to pay approximately £3.5 – £5 GBP as the transfer fee. Moreover, this rate is guaranteed for up to 24 hours. Wise also makes a comparison across various fund transfer services although most of these are banks, if you do your own research you will find they are extremely competitive.
Why Guaranteed Rates Matter
Getting a great rate is one thing, but many people do not realise that “Guaranteed Rates” are critical to give you time to transfer funds to your bank account.
The reason: The bank you are sending money from will normally take 1-3 days to get your funds to Wise. In the meantime, the awesome exchange rate you locked in can move significantly. To help with this, Wise guarantees rates for 24 or 48 hrs depending on where you are in the world. This is a risk Wise takes. However many money transfer companies do not guarantee rates, which essentially means they can give you a worse exchange rate when they get you money.
In our real-life transfers, we found Wise actually goes beyond their guarantee even if they are losing money.
Top Tip 1: Use the Wise widget to check the fees you pay. Then send funds promtly after you set up a transfer so that the guarantee lasts.
The Negatives (and Positives) from Real Reviewers
Wise enjoys a 4.3 star rating from over 236000+ reviews on Trustpilot.
This speaks a lot about what their customers think about their services. Most reviews we came across on different sites were complimentary.
Customers appreciate the transparent fees, low exchange rates and quick transfers.
The Negatives
Still, there is about 3 percent of people who did not have a good experience with Wise. It is extremely important to find out what went wrong.
Some of the common complaints reviewers had about Wise were:
Delays in funds arriving
Some reviewers have complained of funds being delayed. In the majority of cases it appears the delay occurs because of banks on both sides, and is rarely a result of anything the Wise can control.
Banks at either end of the transaction generally take between 1 and 3 working days. So while Wise says it will take a maximum time of 48 hours (usually much quicker) it can take far longer for the whole money to go from one point to another.
UPDATE: Wise has continually increased transfer speeds over time and can be the fastest (low cost) way to transfer funds. They also give you multiple options based on speed and cost, so you can choose.
Accounts frozen
Of concern is that some reviewers claim that their accounts were frozen after a transfer. This occasionally occurs because a suitable ID is not able to be provided. This seems mostly limited to businesses who have to prove the company is legitimate as well as the people who are authorized to manage the money.
While Wise makes it easier to set up your account initially to make transfers according to the reviewers they seem to ask for additional verification documents after you reach a certain threshold.
Most likely for compliance reasons, Wise needs more information as certain thresholds are reached. In the meantime, the account can be frozen until additional documents are approved (or not – where money is returned).
Got better rates elsewhere
In our testing of major currencies, we found them to be a standout performer. That said, it is worth checking that your currency and the amount are competitive. To do this follow our steps above and compare the rate you get with the interbank rate. If the cost is 1.5% or less you can be pretty sure you will not find a better rate with another money transfer company especially if they check costs and avoid extra bank fees (above).
Top Tip 2: Nothing is perfect. However, understanding how funds can be delayed or accounts frozen helps to avoid this small possibility (simply read this section).
How it Works and When it Doesn't
When you transfer funds with Wise, quite often your funds do not actually move abroad.
What !?
The beauty of Wise because of the network of banks they have and customers all around the globe is that they can essentially swap a lot of money and efficiently manage the rest.
In this way, they can save you a lot of time and cost.
When it does not work so well
While Wise offers a quick and inexpensive to transfers, there are situations where other services might be better.
The biggest of these is for very large transfers.
The challenge with Wise is because they are super efficient at transferring your money they keep their customer service costs to a minimum. Think chat and email instead of 24/7 phone support.
This means, even though they can handle large amounts (well over £4000 GBP /$7000 USD) often more ID is required and banks can also cause more issues as they have limits on how much they can send.
The best answer to these challenges is using a service where you are able to pick up the phone and easily.
And competitors like OFX have 24/7 phone support.
Also, if you want phone support throughout the fund transfer process, you need to look elsewhere. In order to keep their costs low, Wise is focused on an online experience.
Top Tip 3: For large amounts comparing Wise with other services is no just about fees.
True Speed of Transfers + How to Make it Faster
Top Tip 4: If you need to transfer funds fast, make payment using a credit or debit card. However this does come at an additional cost!
There are really three steps which take time.
Step 1. Sending Bank
Step 2. Wise exchange
Step 3. Receiving Bank
In all, the whole process can often take just a few minutes or up to 6 days for lesser known currencies.
Of course incorrect bank details and compliance issues rarely but can slow things down.
How to Make it Faster
When you are setting up a transfer you will be presented with multiple ways to fund the transfer, each will show how much it costs and the time it will take. Simple choose the option that works best for you.
Is it Safe?
The first thing you need to know about a fund transfer service is whether your money is safe with them.
Wise has millions of customers. This speaks a loud of their integrity and quality of services.
The company has all the licences and registrations it needs to operate its business.
In the UK, Wise Ltd is licensed as an Electronic Money Institution (EMI) by the Financial Conduct Authority.
Wise Ltd Australia is registered by the Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA) and authorised as an Authorised Deposit-taking Institution (ADI) limited to a provider of purchased payment facilities (“PPF licence”).
In Canada, it is regulated by Authorité des Marchés Financiers (AMF) and has a Money Service Business (MSB) license through FINTRAC.
In the US, Wise is registered with the Financial Crimes Enforcement Network (FinCEN).
It is also registered in Japan, Singapore and New Zealand. You can stay assured that your money and data is as safe with them as with any other bank or financial institution.
Top Tip 5: It is good to know Wise is regulated in som many countries because each has it’s own set of hoops that need to be jumped through which means you money is a safe as possible.
Quick Signup & How to Transfer
Signing up and making your first transfer are tied together on Wise is very simple and straightforward with the ability to use Facebook and Google accounts to make it even easier.
1 Register email
You can use the get started button from the widget.
This takes you to the sign up page. You can sign up using your email address, Google account or Facebook.
2 Verification
They will send you an email and a text with a security code. You need to enter the security code and click on the email link to set up your fund transfer.
3 Fund transfer
You enter the amount you need to transfer and you will get an estimate of when the funds will arrive in the recipient’s account. They will also show you teh time they guarantee the exchange rate for which will be 24 or 48 hours.
4 Recipient details
You will be asked you enter bank details of the recipient.
5 Verification
Like any other fund transfer service, TransferWise will also ask you for some verification details. You have to provide your proof of identity and residence. You can simply click a photograph of the document on your smartphone and upload it.
Verification can take a maximum of two days. In most cases, it happens pretty much instantly.
6 Make transfer
You can choose the mode of transfer, such as bank transfer, card transfer or another type depending on the country where the money is coming from. You can then use the chosen mode to make payment to TransferWise.
7 Track your money
TransferWise will keep sending you emails to help you track progress of your fund transfer. Alternatively, you can login and check the status of your funds.
Top Tip 6: If you are worried at all about signing up and loosing money, perhaps you could send a small amount initially to help get comfortable with how things work.
Bottom Line
Wise is a simple, secure and inexpensive way to transfer funds abroad.
What sets it apart is its ease of use and transparency about what they charge and the rates they offer which you can check yourself (above). They offer mid-market rates and charge a fixed fee on transfers.
You can calculate the cost of the transfer even before you make the payment. However, it may not work well in all situations, especially when you have to make large transactions or you are not too comfortable doing everything online.
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