TransferWise uses a peer-to-peer platform to convert currencies so customers can send money abroad without paying the hefty fees traditionally associated with such services. Here’s how the process works: instead of making one international transfer, TransferWise carries out two local transfers on your behalf. For example, when transferring money from the U.S. to Great Britain, your U.S. dollars will be sent to a local U.S. TransferWise account and then TransferWise will send British pounds from a local British account to your nearby destination.
- With TransferWise, fees largely depend on the amount of money you’re transferring. As a general guide, you can expect to pay a $3 flat-fee for transfers up to $300, a 1% fee for transfers of $301 to $5,000, and a .7% fee for any additional amount over $5,000.
- Fees can additionally differ based on the types of currencies your money transfer will involve. For example, when transferring $100 U.S. dollars, the flat fee for a transfer to GBP is $3 but the flat fee for a transfer to INR is $2.70. If your money transfer involves two currencies with different fee rates, the higher charge will apply.
- Depending upon the country and currency involved, the time it takes for TransferWise to complete the money transfer can differ. Usually, transfers from US Dollars are received in one working day. However, a transfer may take up to five working days based on the payment method you choose.
TransferWise was founded in 2011 by Taavet Hinrikus and Kristo Käärmann, two friends who made local deposits in one another's bank accounts so Taavet could access pounds and Kristo could access euros without either having to pay for international transfers. On the platform, TransferWise users now move over $600 million a month. In the United States, TransferWise primarily acts as a service provider and is sponsored by the Community Federal Savings Bank.
TransferWise is a great solution for cost-conscious individuals who need to send money abroad. Because TransferWise helps you bypass international transfer fees, the company estimates its fees as costing up to eight times less than what a bank charges. Because TransferWise has a network of bank accounts throughout the world, the company is able to send money in a wide variety of currencies while operating in over 40 countries.
This is what we love about TransferWise:
- TransferWise’s commission fees are low and there are no hidden fees.
- TransferWise offers conversions at the mid-market rate and guarantees that the specific rate you see when setting up your transfer will be used for the transfer as long as your money is received within 24 hours. - Transactions can be completed online.
- TransferWise lets you request money in order to initiate getting paid.
- You can send transfers to an email address or to other TransferWise users even if you don’t know their bank account information.
What We do not Like About TransferWise:
- As a currency conversion service, TransferWise does not generally process single-currency money transfers. (As an exception, the “Request Money” feature does allow GBP-GBP and EUR-EUR payments.)
- TransferWise does not accept payment in the form of cash or check.