How Do TransferWise Send Money? A Complete Guide to International Transfers with Wise

Sending money internationally used to be a hassle—long waits, high fees, and hidden charges that left you frustrated. When I first heard about TransferWise, now known as Wise, I was curious about how they managed to make global money transfers so simple and affordable. It felt like they were rewriting the rules of traditional banking.

Wise works differently than your typical bank transfer, and that’s what makes it so effective. They’ve built a system designed to save time and money while keeping everything transparent. If you’ve ever wondered how they pull it off, you’re not alone. Understanding their process can help you see why millions trust them for sending money across borders.

What Is TransferWise?

TransferWise, rebranded as Wise, is an international money transfer platform. It enables users to send funds across borders quickly and cost-effectively. Unlike traditional banks, Wise uses a unique transfer system that avoids international fees and provides real exchange rates.

Wise operates by matching local payments within its system. For example, if you transfer dollars to euros, Wise processes your dollars locally and pays euros from a local account in the destination country. This eliminates the need for costly cross-border transactions.

Transparency is a key feature of Wise. The platform displays exact fees and live exchange rates before confirming a transfer. Users can see how much the recipient will get without worrying about hidden costs. Wise also supports over 50 currencies, which covers most global transfer needs.

How Does TransferWise Send Money?

Wise streamlines international transfers through a straightforward process designed for speed and transparency. Each step is optimized to minimize fees while providing real-time updates for users.

Creating An Account

Signing up is simple with Wise. I enter my email, create a secure password, and provide basic details like my name and address. For added security, Wise may verify my identity through documents such as a government-issued ID or proof of address.

Funding Your Transfer

Wise lets me fund transfers using various methods, including bank transfers, credit/debit cards, and other localized payment options. The funding methods available depend on the sending country. For example, in the US, I can use ACH, wire transfers, or cards.

Currency Conversion Process

Wise uses mid-market exchange rates, ensuring no hidden markups. When I confirm a transfer, the platform converts my funds through its local account network. Instead of one international transaction, Wise conducts two domestic ones, avoiding high traditional bank fees.

Sending Money To The Recipient

Once the conversion is complete, Wise pays recipients from its local bank accounts in their currency. I can provide their details, such as bank account information or IBAN, depending on their country’s requirements. Delivery times vary, averaging hours for card payments and 1-2 days for bank transfers, based on processing speeds and currency pairings.

Key Features Of TransferWise

Wise offers several features designed to make international money transfers affordable, fast, and transparent. These capabilities address common issues users face with traditional methods.

Low Fees And Transparent Pricing

Wise charges a small, upfront fee that’s clearly displayed before completing a transaction. Unlike traditional banks adding hidden charges or inflated exchange rate margins, Wise ensures users know the total cost in advance. For instance, sending $1,000 may cost as little as $5-$10 depending on the currencies and payment method, saving users significant amounts compared to other services.

Real Exchange Rates

Wise uses the mid-market exchange rate, which is the rate found on platforms like Google or Reuters. This ensures users get the most accurate currency conversion without markups. For example, converting USD to EUR reflects the live market rate without hidden costs, allowing users to transfer funds internationally without losing on poor rates.

Fast Transfer Times

Transfers processed through Wise reach recipients quickly, with many delivered within hours using card payments. Bank transfers can take 1-2 business days depending on verification or the specific destination country. Wise achieves these speeds by relying on local transactions rather than traditional cross-border processes, cutting delays significantly.

Benefits Of Using TransferWise

Using Wise offers distinct advantages for individuals seeking a reliable, fast, and economical international money transfer platform. Its commitment to transparency, efficiency, and accessibility makes it a favorable choice.

Cost Savings

With Wise, users save on fees compared to traditional banks or other services. The platform charges a small, upfront fee that users see before confirming a transfer, eliminating hidden costs or unexpected charges. Wise uses mid-market exchange rates without adding markups, ensuring every customer gets the best possible rate for currency conversion.

User-Friendly Interface

Wise simplifies the transfer process with an intuitive platform that’s easy to navigate. Creating an account, verifying identity, and initiating transfers require just a few steps. The interface explains the transfer details clearly, including fees, exchange rates, and delivery times. Its mobile app makes managing transfers even more convenient for users on-the-go.

Global Accessibility

Wise supports over 50 currencies, covering major and minor global financial markets. Users can send money to 170+ countries, reaching individuals, businesses, or bank accounts worldwide. This extensive network, combined with localized processing, ensures seamless transfers across borders without the limitations of traditional international banking.

Potential Drawbacks

While Wise offers numerous advantages, it’s essential to consider some potential drawbacks that may affect specific users and scenarios.

Limitations On Certain Transfers

Wise supports over 50 currencies, but not all currencies or countries are available for transfers. For example, transfers to nations with strict currency controls, such as Iran or North Korea, may not be possible. Additionally, transfers involving unsupported payment methods or certain currency conversions could face restrictions within the platform.

Dependency On Banking Systems

Wise heavily relies on local banking networks to process transactions. If banking infrastructure in a recipient’s country is unstable or experiences delays, transfer times may increase. For instance, weekends, holidays, or unexpected bank outages can slow down processing, even though Wise’s system remains functional.

Conclusion

Wise has revolutionized the way we think about international money transfers by offering a service that’s fast, transparent, and cost-effective. Its innovative approach eliminates the hidden fees and inefficiencies often associated with traditional banking methods. While it may not support every currency or country, its benefits far outweigh its limitations for most users.

Whether you’re sending money to family abroad or managing global transactions, Wise provides a reliable platform that prioritizes fairness and simplicity. It’s a tool I trust for hassle-free international transfers, and it continues to set the standard for modern money movement.

Frequently Asked Questions

What is Wise and how does it work?

Wise is an international money transfer platform that provides quick, affordable, and transparent services. Instead of using costly international transfers, Wise matches local payments. It operates with real exchange rates and upfront fees, ensuring no hidden costs. Transfers are processed locally to minimize expenses, and funds are typically delivered within hours or 1-2 days, depending on the method.

What currencies and countries does Wise support?

Wise supports over 50 currencies and allows transfers to over 170 countries. However, certain currencies and countries with strict currency controls, like Iran or North Korea, are not supported.

How does Wise save money on international transfers?

Wise uses mid-market exchange rates with no hidden markups and performs two local transactions instead of one international transfer. This process eliminates traditional cross-border fees, making transfers more affordable.

How long does it take to send money with Wise?

Transfer times vary based on funding methods, but most transactions take a few hours for card payments and 1-2 business days for bank transfers. Delays may occur on weekends, holidays, or due to banking issues in the recipient’s country.

Are there hidden fees when using Wise?

No, Wise is fully transparent. It provides detailed fee information and live exchange rates before transactions are made, ensuring there are no hidden costs.

What are the funding methods for Wise transfers?

Wise allows users to fund transfers via bank transfers, credit/debit cards, and other country-specific methods. Availability depends on the region of the sender.

Is Wise secure for international money transfers?

Yes, Wise is highly secure. It is regulated by financial authorities in multiple countries and uses encryption technologies to protect user data.

Can Wise be used for business transactions?

Yes, Wise offers business accounts tailored for international payments, allowing companies to benefit from low fees, real exchange rates, and batch payment options.

Are there any limitations to using Wise?

While Wise supports many major currencies and regions, certain countries—especially those with strict regulations—are not supported. Transfer times may also depend on local banking infrastructure and holidays.

Why should I use Wise instead of a traditional bank?

Wise typically offers lower fees, real-time exchange rates with no markups, faster transfers, and a more user-friendly interface compared to traditional banks. It also provides greater transparency during the entire process.