TransferWise offers a streamlined and relatively inexpensive approach for its international money transfers. Started in 2011, the United Kingdom-based company combines low overall costs with a convenient Web experience for sending money to family or friends in other countries. Its foreign exchange rates tend to be among the best available.
But the service isn’t for everyone. TransferWise sends only online- and mobile-initiated international transfers to bank accounts in 60 countries. Although it covers the majority of Europe, the biggest English-speaking nations and some major Asian countries, it’s spotty elsewhere. The holes in its coverage include some of the countries that get heavy transfer volume from the U.S., such as Vietnam, Nigeria and Guatemala.
Transfers rely on banking hours and other factors, so they can take several business days. If you need to send money in person, deliver cash or transfer to another part of the U.S., you’ll need to look elsewhere.
» MORE: Best ways to send money
TransferWise may be right for you if:
- You want to save money on international transfers to the countries it supports.
- You’re OK with making Web-based transfers from a bank account and don’t need the money to arrive right away.
- You want an easy-to-use website and mobile app for sending money.
TransferWise at a glance
| Pros | Cons |
|---|---|
|
Exchange rates are hard to beat; TransferWise doesn't mark up rates for a profit like banks and other providers normally do |
Doesn’t support debit or credit card payments for U.S. customers |
|
Sending fee is straightforward and easy to find on its cost calculator |
No way to make cash payments or choose cash delivery |
|
Easy to sign up with email address or by connecting a Google or Facebook account |
Limited to 60 destination countries and 36 currencies for transfers sent from the U.S.; no U.S.-to-U.S. transfers accepted |
TransferWise money transfers
| Feature | Details |
|---|---|
| Transfer options | Sending option: Website, mobile app Delivery option: Bank account Payment option: U.S. bank account (money sent to TransferWise via ACH bank debit or wire transfer) |
| Sending fee | Varies by currency and transfer amount 40 of 60 supported countries (especially in Europe) are priced as follows: Sending less than $300: $3 Sending between $300 and $5,000: 1% of transfer amount Sending over $5,000: 1% for first $5,000 + 0.7% for the amount over that Pricing for the other 20 countries, including Mexico, India and China, follows a similar structure, but with slightly different flat and percentage fees. If you pay via wire transfer, there’s an additional fee that your bank will likely charge. |
| Delivery speed | Generally several business days, depending on destination, payment method, bank hours and TransferWise's verification process (if required for transfer) |
| Foreign exchange rates | Exchange rates are the midmarket, or interbank, rates that big banks use among one another; they're not usually available to consumers |
| Sending limits | Paying via ACH bank debit: $10,000 maximum per 24-hour period; increases to $15,000 after the first month Paying via wire transfer: $1 million maximum |
» MORE: Best ways to wire money internationally
Where TransferWise shines and where it falls short
TransferWise makes sending money abroad simple, with login and set-up processes designed for people who tend to do online and mobile banking. Its peer-to-peer platform lets you view transfers, save contacts and see a cost calculator with current exchange rates. The overall cost if you choose a standard ACH transfer is a combination of an upfront fee and the exchange fee. The upfront fee is generally a flat fee for smaller transfers and a percentage of the total for larger transfers. The exchange rate is usually more favorable to you than those that many banks and other providers offer.But with its simplicity comes limits. Transfers from the U.S. go to only 60 countries, many of them in Europe, and they work only with bank accounts. Paying with debit or credit cards, which tend to make transfers faster, is not available, so usually a transfer takes several business days for delivery. The fastest ones involve sending your amount to TransferWise with a domestic bank wire transfer, which banks generally charge a fee for.
» MORE: What wire transfers cost at banks
Next steps
If your destination, cost and delivery speed needs match up with what TransferWise offers, then this provider can be right for you. Otherwise, consider other ways to send money.
Spencer Tierney is a staff writer at NerdWallet, a personal finance website. Email: spencer@nerdwallet.com. Twitter: @SpencerNerd.
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