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See all posts Frank GogolEverything You Need to Know About Sending Money with TransferWise
Updated on April 10, 2024
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Sending money abroad can be a pain to do because of all the fees and rates companies want to slam you with. However, it is something that people are going to continue doing as our world becomes more globalized. Companies are realizing the potential this market has and are making moves to become the most competitive money transferring services. Until cryptocurrency takes over the market, we are going to review one of the most popular remittance services you should consider to transfer your money abroad: TransferWise.
TransferWise is a money transfer service company developed in Estonia that is now based in the UK. With TransferWise, you can send money from one country to another without suffering high costs and hidden transfer fees. In addition to saving you money on fees, they convert your money at a mid-market exchange rate which beats out comparatively higher rates at other transferring companies. On top of all of those benefits, Transferwise also allows you to make payments via bank transfer, such as with your debit and credit card. Depending on the country you live in, you can treat yourself with more convenience and make transfers from your phone using Apple Pay with the TransferWise iOS app.
The most important part of the company? TransferWise works fast and the money usually only takes one to four business day to arrive in the recipient’s bank account you have selected. If you need some social approval, you can check out one of the thousands of great reviews on Trustpilot about the company. Trustpilot converts over 38 different currencies to 72 countries worldwide, and the homepage is available in 6 different languages, catering to a large mass of people interested in the service.
In this article, we are going to give you all the details on the money transfer service so you can learn why it is a good option to use to transfer your money. We list our advantages and disadvantages so you can decide if it is a company you want to transfer money with.
What is TransferWise?
TransferWise was founded by two Estonians, Taavet Hinrikus, and Kristo Käärmann, while living in London. Both had problems sending money back home to their families so they developed a peer to peer model to avoid high international bank transfer costs. Today, the company sends more than $750 million around the world each month and have raised over $115M dollars from investors like Richard Branson and Andreessen Horowitz. The company is very successful and employs more than 600 people in its headquarter in London as well as in their offices in Estonia, USA, Ukraine, Hungary, and Japan.
You can use the company’s website as well as mobile apps for both iOS and Android smartphones and tablets to send money. Aside from the online convenience, the company offers additional services for businesses that help them make international payments to employees, freelancers or suppliers.
What are the Advantages and Disadvantages of TransferWise?
As mentioned above TransferWise has excellent customer reviews on Trustpilot, a good mid-market exchange rate, low and transparent transfer fees, and great user experience. However, the company also has some disadvantages such as a limited number of supported countries and the fact that you can only send money to a bank account and not a local office.
Is TransferWise Safe for Sending Money?
If you have never transferred money online, you are probably wondering whether it is safe or not to transfer money with TransferWise. We can tell you that transferring money with TransferWise is definitely safe, as the company is a license Authorized Electronic Money Institution. This means that the company is regulated in the United Kingdom by both the Financial Conduct Authority (FCA) as well as by the Majesty’s Revenue and Customs (HMRC). In addition to the security, they include a 256-bit SSL encryption with a 2048-bit signature, which makes the website 100% safe and trustworthy.
We know that it is hard to trust internet money service providers because your money is getting slung across the world with no tangible grasp on it. However, you do not need to worry about losing your money because the company is regulated by the FCA and all client’s funds are stored separately from the company into separate business accounts. In the event that something does happen to the company, your money will stay protected.
What are the Fees & Rates with TransferWise?
Like all money transfer companies, TransferWise has fees and exchange rates when using their service. However, TransferWise is the most competitive in the business, offering very low and fully transparent fees. Take the transfer fee, for instance, the amount you will be charged will depend on the amount you are going to send and the currency you are going to send it in. For the exchange rate, the company uses the mid-market exchange rate, which is lower than what other companies choose to use. So that you are not affected by exchange rate fluctuations, your exchange rate will be locked for 24 to 48 hours if you send money in GBP, EUR or USD. In order to be able to transfer on the locked exchange rate, you need to receive your payment within a certain period of time.
Keep in mind that if you choose to pay with a credit card, TransferWise charges fees between 0.3% to 2% – the exact fee depends on the currency you are going to send money in as well as the type of credit card you use. Usually sending money from debit cards is free of charge, however, if you send from AUD, CHF or NZD, a fee of 1.2% to 2% will be charged on the transfer regardless of the card and currency.
If you want to help your family with a reasonably priced loan.
Loans for up to $25,000. No cosigner required.
How to Use TransferWise?
To get started with TransferWise, the first thing you need to do is create an account on their website. You can do that by either signing up for your Google or Facebook account; it should only take a couple of minutes to get your account registered. If you are ready to transfer your money, simply set up your transfer in your new account. At this point, you will have to put in the amount you are going to send and where you want to send it to. Once you have done this, you can choose your payment methods, such as debit or credit card or Apple Pay. After this, TransferWise will convert the money at the mid-market rate and send it to your recipient’s bank account. Once you have finished the process, you will receive a notification email that you have set the process in motion. You will also receive an email notification once the money reaches its final destination.
In order to comply with anti-money laundering regulations, TransferWise will ask you to verify your identity by requesting that you send a copy of an identification document such as your passport, national id, or driver’s license. They will also ask for proof of your current home address to verify where you are handling your transfers from.
Should I use TransferWise to Transfer My Money?
As with all remittance service providers, you are going to see several advantages and disadvantages, however, we believe TransferWise might have more advantages compared to the competition. If you are not sure which service you want to use, we suggest you do tons of research and review all the advantages and disadvantages so that you can make the right decision for yourself. In addition to doing your homework, you can also look at the most popular remittance service providers in your country and use that as a basis to choose your money transfer provider. If you have any experiences or suggestions on which ones to use, please feel free to share in the comments section below. If you have any questions on how you can send money abroad to your family and friends reach out to one of our specialists!
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Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.