By zoostoki 
Key Takeaways
- Wise (formerly TransferWise) accepts credit cards as a payment option for international money transfers, including most Visa and Mastercard cards.
- Credit card transactions on Wise may incur additional fees, typically ranging from 1.75% to 3%, along with potential cash advance charges from your card issuer.
- Using a credit card ensures faster processing times compared to bank transfers, making it ideal for urgent transactions.
- Steps to transfer money with a credit card via Wise are simple, including signing in, entering transfer details, selecting the credit card payment method, and confirming the transaction.
- Verify credit card limits, fees, and recipient details beforehand for a smooth and error-free transaction.
- Alternative payment methods, such as debit cards, bank transfers, and mobile wallets, may offer lower fees and suit different financial preferences.
Sending money internationally has never been easier, thanks to platforms like TransferWise, now known as Wise. If you’re like me, you probably value speed, convenience, and affordability when it comes to transferring funds across borders. But what if you want to use a credit card for the transaction? It’s a common question for those looking to maximize rewards or simply use their available credit.
Understanding how Wise works with credit cards can save you time and help you make smarter financial decisions. Whether you’re paying for services abroad or sending money to loved ones, knowing your payment options is key. Let’s dive into whether Wise supports credit card payments and what you should consider before using this method.
What Is TransferWise And How Does It Work?
TransferWise, now known as Wise, is an online platform built for international money transfers. It offers cross-border payments with lower fees compared to traditional banks by using a local-to-local transfer system. Instead of moving money across borders, Wise matches your transfer with one sent in the opposite direction, reducing intermediary costs.
When using Wise, you select the amount, currency, and recipient’s bank details. The platform displays transparent fees upfront, showing exactly how much the recipient will get. Payments can be made via bank transfer, debit card, or credit card, depending on your country.
Wise also provides mid-market exchange rates without hidden markups. If you send $1,000 from the US to Europe, for example, it matches your dollars with euros at the real market rate, ensuring no loss in value. Transactions are typically processed within hours to a few days, depending on the payment method and destination.
Can You Use A Credit Card With TransferWise?
Yes, you can use a credit card with Wise (formerly TransferWise) to send money internationally. It’s one of the accepted payment methods on the platform but comes with specific fees and constraints.
Accepted Payment Methods
Wise supports various payment methods, including bank transfers, debit cards, and credit cards. For credit cards, Visa and Mastercard are commonly accepted. Payments through credit cards ensure faster processing times compared to bank transfers, which may take longer. However, availability may vary by country or region.
Credit Card Fees And Restrictions
Using a credit card on Wise incurs additional fees compared to debit card or bank transfer payments. These fees typically range between 1.75% and 3% of the transaction amount. Credit card providers may also charge cash advance fees, depending on their policies. Some transactions may have limits in place for credit card payments, and Wise provides real-time information about fees and applicable restrictions during the transaction process.
How To Send Money Through TransferWise With A Credit Card
Sending money through Wise using a credit card is straightforward and efficient. Below, I’ve outlined a step-by-step guide and essential tips to ensure a hassle-free transaction.
Step-By-Step Guide
- Sign In To Your Wise Account
Access your Wise account on their website or mobile app. Create an account if you’re a new user by providing basic personal information.
- Enter Transfer Details
Specify the amount you want to send, choose the currency, and provide the recipient’s bank account details. Wise automatically shows transparent fees and the exact amount the recipient will receive.
- Select Credit Card As The Payment Method
Choose “Credit Card” from the payment options listed. Wise accepts most Visa and Mastercard credit cards.
- Provide Card Information
Enter your credit card details, including card number, expiration date, and CVV code. Wise processes credit card payments quickly once the information is submitted.
- Review And Confirm The Transfer
Verify all details, including the fees and recipient information. Confirm the payment after ensuring everything is accurate.
- Track The Transaction
Use the Wise dashboard to monitor the status of your transfer. Notifications are sent via email or app updates once the recipient receives the money.
Tips For A Smooth Transaction
- Check Credit Card Fees
Some credit card providers impose cash advance fees on international transactions, in addition to Wise’s fees. Verify these charges with your provider to avoid surprises.
- Ensure Sufficient Credit Limit
Confirm your credit card has enough available credit to complete the transfer without disruptions.
- Use Accurate Information
Inputting the correct recipient details and card information reduces the risk of delays.
- Transfer Within Limits
Wise enforces limits for credit card payments depending on currency and region. Check these limits before initiating a transaction.
- Monitor Exchange Rates
Wise uses mid-market exchange rates, but rates can fluctuate. Sending during favorable rates maximizes the recipient’s received amount.
Following these steps and tips simplifies using a credit card with Wise for international money transfers.
Pros And Cons Of Using A Credit Card With TransferWise
Using a credit card with Wise offers specific benefits but also comes with certain limitations. Below, I outline the advantages and potential drawbacks to help you make an informed decision.
Advantages
- Faster Transactions: Credit card payments process quicker compared to bank transfers. This speeds up international money transfers, which is valuable in urgent situations.
- Accessibility: Credit cards provide a readily available payment option, especially for users without immediate funds in their bank accounts.
- Reward Points and Bonuses: Many credit cards offer rewards like cashback, miles, or points, which can benefit you when paired with Wise transactions.
- Flexibility: Credit cards help manage expenses by allowing transfers even when you don’t have sufficient debit funds.
Potential Drawbacks
- High Fees: Wise charges additional fees for credit card use, averaging 1.75% to 3% of the transaction value. These costs reduce the overall transfer savings offered by Wise.
- Cash Advance Charges: Some credit card providers classify international transfers as cash advances, leading to extra interest fees or charges.
- Transaction Limits: Credit card payments on Wise may be restricted by either Wise or your card issuer, impacting the amount you can send.
- Possible Declines: Certain banks restrict international credit card transactions for security reasons, potentially causing delays or failed payments.
Understanding these pros and cons is crucial for optimizing credit card use with Wise while mitigating risks.
Alternative Payment Methods To Consider
Several payment methods are available for transferring money internationally, each catering to different preferences and needs.
- Bank Transfers
Bank-to-bank transfers are a direct way to fund transactions. They often involve lower fees compared to credit cards but may take longer to process. This option is ideal for those transferring larger sums without time constraints.
- Debit Cards
Debit cards allow users to complete transactions quickly with lower fees than credit cards. They withdraw funds directly from your bank account, avoiding cash advance fees while maintaining quick processing times.
- Apple Pay or Google Pay
These mobile wallet options provide a convenient and secure way to send money. Wise supports these platforms in certain countries, offering a seamless payment experience for users with enabled devices.
- SWIFT Transfers
SWIFT payments are suitable for international bank transactions where Wise’s local transfer network isn’t available. These transfers may come with additional processing fees and longer timelines.
- Direct Debit
Direct debit allows automatic payments from your linked bank account. Though slightly slower to process than debit cards, this method is reliable for recurring transfers or larger amounts.
Conclusion
Using a credit card with Wise can be a convenient way to send money internationally, especially if you’re looking for speed and flexibility. However, it’s essential to weigh the benefits against the potential costs, such as higher fees and cash advance charges.
By understanding how Wise works and exploring alternative payment methods, you can choose the option that best suits your needs. Whether you’re prioritizing affordability, speed, or earning rewards, Wise offers a reliable platform for seamless cross-border transactions.
Frequently Asked Questions
1. Can I send money internationally using Wise with a credit card?
Yes, Wise allows you to send money internationally using major credit cards like Visa and Mastercard. However, be aware of additional fees ranging from 1.75% to 3% and possible cash advance charges from your credit card provider.
2. How does Wise ensure low fees for international transfers?
Wise uses a local-to-local transfer system, avoiding intermediary banks. They provide transparent mid-market exchange rates without hidden markups, making them more affordable than traditional banks.
3. How long do Wise money transfers typically take?
Wise transactions are usually processed within hours to a few days, depending on the payment method and destination country.
4. What are the advantages of using a credit card with Wise?
Using a credit card provides faster processing times, flexibility in managing expenses, and the opportunity to earn reward points, depending on your card’s benefits.
5. Are there any limits on credit card transactions with Wise?
Yes, Wise may impose transaction limits on credit card payments, which vary depending on the amount, currency, and your location. Check these limits within the Wise platform during the transaction process.
6. Will my credit card company charge additional fees for using Wise?
Some credit card issuers treat Wise transactions as cash advances, which may incur extra fees or higher interest rates. Always check with your credit card provider before proceeding.
7. What other payment methods does Wise support?
Wise supports bank transfers, debit cards, mobile wallets like Apple Pay and Google Pay, SWIFT transfers, and direct debit, catering to various preferences and needs.
8. How can I avoid high fees when using Wise?
To avoid high fees, consider using bank transfers or debit cards instead of credit cards since they typically have lower associated costs.
9. Is Wise secure for international money transfers?
Yes, Wise is highly secure and regulated in multiple countries, ensuring safe transactions through encryption and strict compliance with financial regulations.
10. Can I track my transaction after sending money through Wise?
Yes, Wise provides real-time tracking for your transactions through their platform, allowing you to see the status of your transfer at any time.