How Do You Receive Money from TransferWise? A Simple Guide to Getting Paid Easily

Getting paid from abroad used to be complicated, but platforms like TransferWise, now known as Wise, have made it incredibly simple. I’ve found that receiving money through Wise is not only fast but also transparent, with no hidden fees eating into the amount you’re expecting. It’s a game-changer for anyone dealing with international payments.

Whether you’re a freelancer, a small business owner, or just receiving money from family overseas, Wise makes the process straightforward. You don’t need to be tech-savvy to set it up, and the best part is, you’ll often get better exchange rates compared to traditional banks. Let me walk you through how you can easily receive money using this platform.

What Is TransferWise?

TransferWise, now called Wise, is an international money transfer platform allowing users to send and receive money across borders. It prioritizes transparency by providing exact fee breakdowns and mid-market exchange rates without hidden markups.

Wise operates in over 170 countries, supporting 50+ currencies such as USD, EUR, GBP, and AUD. Its multi-currency account lets users hold, send, and receive money in different currencies, making it ideal for freelancers or businesses handling international transactions.

The platform uses local banking systems to process payments, which bypasses costly international banking networks. This reduces fees and ensures faster processing. Wise is fully licensed and regulated in multiple jurisdictions, ensuring security and compliance.

Setting Up Your TransferWise Account

Getting started with Wise is straightforward. To receive money through the platform, you must create an account and complete the necessary verification steps.

Creating an Account

Sign up on the Wise website or app by entering your email address and setting a password. Select the account type—personal or business—based on your needs. Provide your full name, country of residence, and phone number to proceed.

After submitting your details, confirm your email address by clicking the link in the automated email Wise sends. This activation step ensures your account is ready for use.

Verifying Your Identity

To comply with regulations, Wise requires identity verification. Upload a government-issued photo ID, such as a passport or driver’s license. For some transactions or countries, you may need to provide proof of address, like a recent utility bill or bank statement.

The verification process typically takes a few hours but may vary. Once your identity is confirmed, you can begin receiving money without restrictions.

How Do You Receive Money From TransferWise?

Receiving money through Wise is straightforward and efficient, whether you’re using your local bank account or Wise’s multi-currency account. Follow these steps to ensure a smooth transaction.

Providing Your Bank Details

I provide my local bank details to the sender when I prefer receiving deposits directly into my bank account. This includes the account number, routing number (if applicable), and the name matching my bank records. Wise processes the transfer through local banking systems, minimizing fees and delays.

Sharing Your Wise Account Details

I use my Wise account details if I want the funds deposited into my Wise multi-currency account. After logging in to Wise, I navigate to the “Balances” section to find account details for various supported currencies. For example, I might share my UK Sort Code and Account Number for GBP transfers or my Australian BSB and Account Number for AUD transfers.

Using USD Bank Details (For US Residents)

If I’m based in the US, I use the USD bank details provided by Wise to receive payments in dollars. These details, accessible in the “Balances” section of my Wise account, include an ACH routing number, an account number, and the bank’s name. This option ensures domestic transfer benefits, such as faster processing and no intermediary bank fees.

Understanding TransferWise Fees

Wise simplifies receiving money internationally, but understanding the associated fees is crucial. Here’s a breakdown of the types of fees and ways to reduce them.

Types Of Fees Involved

Wise charges transparent fees based on the transaction type and currency. The main fees include:

• Transfer Fee: A fixed amount plus a percentage of the transaction, dependent on the currencies involved. For example, sending USD to EUR may incur a 0.43% fee plus a small fixed amount.
• Currency Conversion Fee: Applied when money is converted between currencies. This rate is often more competitive than traditional banks. For instance, converting GBP to USD typically involves a mid-market exchange rate with a fee as low as 0.35%.
• Additional Bank Charges: In rare cases, intermediary or recipient banks may impose extra fees for receiving funds, which Wise cannot control.

Tips To Minimize Fees

• Utilize Same-Currency Transfers: Avoid conversion fees by receiving money in the same currency as the sender. For example, request USD if both parties are in the US.
• Choose Local Bank Transfers: Use Wise’s local account details for direct transactions, reducing additional banking charges.
• Leverage Wise Balances: Hold money in multiple currencies using the Wise multi-currency account to limit the need for frequent conversions.
• Review Before Sending: Confirm the applicable fees in Wise’s cost calculator before finalizing a transaction. This ensures transparency and helps avoid surprises.

Pros And Cons Of Using TransferWise For Receiving Money

Pros

1. Low Fees

TransferWise charges lower fees compared to traditional banks. For example, same-currency transfers avoid conversion charges, and the platform’s fee structure is transparent.

1. Better Exchange Rates

The platform uses mid-market rates without additional markups. This provides more value for international payments than other remittance options.

1. Fast Transfers

Payments typically arrive within 1-2 business days, depending on the currency and country.

1. Global Accessibility

Operating in over 170 countries, TransferWise ensures broad access. It also supports more than 50 currencies, like USD, EUR, and GBP.

1. Security And Regulation

TransferWise is fully licensed and uses secure encryption protocols. It complies with global financial standards, ensuring protection for users’ money.

1. User-Friendly Platform

The intuitive website and app make processes like sharing details or tracking transfers straightforward.

Cons

1. Limited Cash Pickup

The platform primarily supports bank account transfers, lacking a cash pickup option common in other services.

1. Potential Sender Restrictions

Some currencies or payment methods may not be available for certain countries, impacting the sender’s options.

1. Intermediary Bank Fees

In rare cases, additional charges from intermediary banks may reduce the final amount received.

1. No Credit Card Deposit

Funds cannot be directly deposited into a credit card account, unlike some traditional money transfer providers.

1. Verification Delays

Account setup and first-time transfers might face delays during identity verification.

1. Varied Speeds For Less Common Currencies

Transfers with non-major currencies can take longer to process.

This balance of advantages and disadvantages helps me assess if TransferWise aligns with my receiving needs.

Conclusion

Wise has transformed how we receive money internationally, offering a reliable, cost-effective solution with unmatched transparency. Its combination of low fees, competitive exchange rates, and global accessibility makes it a standout choice for individuals and businesses alike. While no platform is without limitations, the benefits of using Wise far outweigh the drawbacks for most users.

Whether you’re managing cross-border payments or receiving funds from family, Wise ensures a seamless experience. By understanding its features and fees, you can make the most of this innovative platform and enjoy fast, secure, and affordable transactions every time.

Frequently Asked Questions

What is Wise, and how does it help with receiving money from abroad?

Wise, formerly TransferWise, is a money transfer platform that simplifies receiving payments from abroad. It offers fast transactions, low fees, and competitive exchange rates using mid-market rates. It operates in over 170 countries and supports 50+ currencies.

How do I set up a Wise account to receive payments?

To set up a Wise account, sign up on Wise’s website or app, verify your identity with the required documents, and create a multi-currency account. Share the account details (like a local bank account or Wise USD account details) with the sender to get paid.

What fees does Wise charge when receiving international payments?

Wise charges a transfer fee based on the transaction type and currency. It also applies a small currency conversion fee if applicable. However, fees are transparent and clearly shown before each transfer.

Why are Wise’s exchange rates better than traditional banks?

Wise uses mid-market exchange rates, which are the fairest rates without added markups. Banks often add hidden fees within their exchange rates, making Wise a more cost-effective option.

Can I receive payments in multiple currencies using Wise?

Yes, with a Wise multi-currency account, you can receive payments in over 50 currencies. You also get local bank account details for specific currencies (like USD, EUR, GBP, etc.), enabling easier direct deposits.

Is Wise safe for receiving international payments?

Yes, Wise is licensed and regulated globally by financial authorities, ensuring high security standards. It uses advanced encryption and complies with strict industry standards to protect your money and information.

How long does it take to receive money through Wise?

Most payments arrive within 1-2 business days, though some transactions can be almost instant. Processing times depend on the currency, amount, and payment method used by the sender.

Are there any hidden charges when using Wise?

No, Wise prides itself on transparency. All fees, including transfer and conversion fees, are shown upfront. However, intermediary banks may occasionally charge additional fees not controlled by Wise.

What are the benefits of using Wise over traditional banks?

Wise offers low fees, faster transfers, transparent transactions, mid-market exchange rates, global accessibility in over 170 countries, and a user-friendly experience—advantages that traditional banks often lack.

What are the potential drawbacks of using Wise?

Drawbacks include limited cash pickup options, potential intermediary bank fees, restrictions on some payment methods, varied processing times for uncommon currencies, and delays in account verification.

Can I send or receive payments without verifying my Wise account?

No, you must complete identity verification to use Wise for sending or receiving money. This is a regulatory requirement to ensure security and prevent fraud.

How can I reduce fees when using Wise?

You can minimize fees by opting for same-currency transfers, using local bank transfer options, leveraging Wise balances, and reviewing costs beforehand with Wise’s online fee calculator.

Is Wise suitable for freelancers and small business owners?

Yes, Wise is an excellent option for freelancers and small business owners due to its low fees, competitive exchange rates, multi-currency support, and seamless international payment processing.

Can I use Wise to deposit money directly into a credit card account?

No, Wise does not support direct deposits into credit card accounts. Funds can only be sent to bank accounts or Wise multi-currency accounts.