By zoostoki 
Key Takeaways
- Using Credit Cards on Wise: Yes, you can use a credit card for Wise transactions, but fees and limitations, such as availability by region and card type, may apply.
- Higher Fees for Credit Cards: Payments made with credit cards on Wise typically incur percentage-based fees (0.3%-2%) and may face additional charges from the card issuer, such as cash advance or foreign transaction fees.
- Exchange Rate Transparency: Wise uses the real mid-market exchange rate, but your card issuer may add foreign exchange markups if the billing currency differs from the transfer currency.
- Supported Credit Cards: Wise generally supports Visa and Mastercard, while options like American Express and Discover are often excluded.
- Alternative Payment Methods: Debit cards and bank transfers are more cost-effective alternatives, with lower fees and a lack of cash advance charges, making them ideal for large or recurring transfers.
- Tips for Savings: To save on fees, carefully compare payment methods and ensure the billing currency of your card matches the currency being transferred.
When it comes to sending money internationally, TransferWise (now known as Wise) has become a popular choice for its low fees and transparent exchange rates. But if you’re like me, you might wonder if you can use your credit card to fund those transfers. After all, credit cards are convenient and often come with perks like rewards or cashback.
The answer isn’t as straightforward as you might think. While Wise does allow credit card payments in many cases, there are a few details you’ll want to consider before swiping your card. From potential fees to eligibility, knowing how it works can save you time and money. Let’s dive into what you need to know about using a credit card with Wise.
What Is TransferWise?
TransferWise, now known as Wise, is a global financial platform specializing in low-cost international money transfers. It operates with transparent exchange rates and minimal fees, earning trust from millions of users worldwide.
Overview Of TransferWise Services
Wise enables individuals and businesses to send and receive money across borders in 175+ countries. Its services include account-to-account transfers, multi-currency accounts, and integration with payroll or invoice systems. Users can hold balances in over 50 currencies and instantly convert funds at competitive mid-market rates. The platform also offers local account details for different regions, such as IBANs in Europe and account/routing numbers in the US.
Benefits Of Using TransferWise
Wise keeps fees low and exchange rates transparent, utilizing the real mid-market rate with no hidden markups. Processing time for most transfers is fast, often completing within hours or a single business day. It supports various funding methods like debit cards, bank transfers, and credit cards in some regions, adding flexibility. Its user-friendly interface and mobile app make transactions seamless for individuals and businesses alike. Security measures, including encryption and regulatory compliance, ensure users’ financial data stays safe.
Can I Use A Credit Card For TransferWise?
Yes, you can use a credit card with Wise (formerly TransferWise) for international money transfers. However, certain limitations and fees may apply depending on the card type and your location.
Steps To Use A Credit Card On TransferWise
- Create or log in to your Wise account: Access your account on the Wise app or website.
- Start a new transfer: Enter the recipient’s details, amount, and currency.
- Select the payment method: Choose “credit card” as the payment option.
- Input card details: Enter your card information, including the card number, expiration date, and CVV.
- Confirm the transaction: Review the details, including fees and exchange rates, then complete the transfer.
Processing times might vary, but credit card payments are usually processed instantly.
Supported Credit Card Types
Wise supports most major credit card types, including Visa and Mastercard. In some regions, Maestro cards might also be accepted. American Express and Discover cards are generally not supported. Users should check their card issuer’s policies and any additional fees for Wise transactions.
Costs And Fees Associated With Credit Card Payments
Using a credit card for transfers through Wise comes with specific costs and fees. It’s essential to understand these charges to make informed decisions.
Credit Card Transaction Fees
Wise charges a percentage-based fee for credit card payments. This usually ranges between 0.3% and 2% of the transaction amount, depending on the currency and location. For example, transferring USD to EUR could incur a credit card fee close to 1.1%, while other currency routes might have slightly higher or lower charges. Additionally, your card issuer might levy cash advance fees or international transaction fees if applicable. Checking your card’s terms can help avoid unexpected costs.
Exchange Rate Considerations
Wise applies the real mid-market exchange rate to transfers, ensuring transparency. However, using a credit card might introduce extra costs if your card’s billing currency differs from the transfer currency. In this case, the issuer could impose a foreign exchange markup, often ranging between 1% and 3% of the amount. I recommend verifying the exchange rate policy of your credit card before proceeding with a transaction to avoid additional surprises.
Pros And Cons Of Using A Credit Card For TransferWise
Using a credit card with Wise can provide flexibility and speed, but it also comes with potential costs and limitations. Here’s a breakdown of the main advantages and drawbacks.
Advantages
- Fast Processing: Credit card payments on Wise often process instantly, reducing delays compared to traditional bank transfers. This is helpful when time-sensitive transfers are required.
- Accessibility: Funding transactions with a credit card doesn’t rely on direct access to a bank account, which can be beneficial when you prefer not to share or use your banking details.
- Reward Opportunities: Depending on the card, transactions might earn cashback, travel miles, or other card-specific rewards, offering additional value for users.
Potential Drawbacks
- Higher Fees: Transactions using credit cards typically incur higher fees on Wise, ranging from 0.3% to 2%, based on the currency and location. These rates can make it less cost-effective than other methods.
- Issuer Charges: Card providers might categorize Wise payments as cash advances, applying additional fees and interest rates that increase the overall cost of the transaction.
- Foreign Exchange Markups: If the credit card’s billing currency differs from the transfer currency, the card issuer may impose unfavorable exchange rates, adding extra costs.
- Limited Card Support: Wise doesn’t accept all cards, excluding options like American Express and Discover in most cases, which restricts payment flexibility.
Understanding these pros and cons can help assess whether a credit card is the best option for Wise transactions.
Alternatives To Using A Credit Card On TransferWise
Using alternatives to credit cards on Wise can help avoid additional fees and streamline transactions. Options like debit cards and bank transfers offer cost-effective ways for funding transfers.
Debit Cards
Debit cards work seamlessly on Wise, providing lower fees compared to credit cards. They carry payment processing fees that are usually smaller, ranging between 0.2% and 0.5%, depending on the currency and location. Debit cards avoid cash advance fees, making them more predictable for budgeting. Wise supports most major debit card networks like Visa and Mastercard, enabling convenient and secure transfers. I recommend checking your card’s billing currency to avoid potential exchange rate markups.
Bank Transfers
Bank transfers are often the cheapest method for funding Wise transactions. They come with flat fees or no added costs, depending on your local bank’s policies. Wise’s local account details allow direct transfers in supported currencies, speeding up the process and enhancing affordability. For large transfers, bank transfers are particularly beneficial as they bypass percentage-based card fees. However, I ensure my bank doesn’t apply outgoing wire fees if I’m using this method.
Tips For Using TransferWise Effectively
Using Wise for international transfers can be efficient and cost-effective when approached strategically. I focus on two key areas: security and fees.
Ensuring Security
I always confirm that my Wise account details and login credentials are secure. Enabling two-factor authentication adds an extra layer of protection during transactions. I consistently verify the recipient’s information to avoid errors, ensuring funds reach the correct destination. When using a credit card, I monitor my card statements for unauthorized charges, contacting my card issuer immediately if I notice any discrepancies.
Saving On Fees
I carefully compare the payment method options before finalizing a transfer. Credit cards incur fees ranging from 0.3% to 2%, so I minimize costs by using alternatives like debit cards or bank transfers whenever possible. For larger transfers, I prioritize bank transfers due to their lower or flat fees. Additionally, I always check if my currency billing matches the transfer currency to avoid extra conversion fees from my card issuer.
Conclusion
Using a credit card with Wise can be a convenient option for international transfers, especially if speed and rewards are a priority. However, it’s essential to weigh the potential costs, including fees from both Wise and your card issuer, to avoid surprises. Exploring alternatives like debit cards or bank transfers might offer better value, particularly for larger transactions.
By understanding the available options and keeping an eye on fees, you can make smarter decisions when funding your transfers. Wise’s platform offers flexibility and transparency, so take advantage of its features to ensure your money reaches its destination efficiently and cost-effectively.
Frequently Asked Questions
Can I use a credit card to fund international transfers through Wise?
Yes, you can use a credit card with Wise to fund international transfers. However, not all card types are accepted—American Express and Discover are generally not supported. Be sure to check for additional fees from both Wise and your card issuer before proceeding.
What fees apply when using a credit card with Wise?
Wise charges a percentage-based fee, typically ranging from 0.3% to 2%, for credit card transactions. Additionally, your card issuer may apply cash advance fees or international transaction fees. Check your credit card’s terms to avoid unexpected costs.
How long does it take for a transfer to process using a credit card?
Credit card payments through Wise are typically processed instantly. However, processing times may vary depending on factors like your bank or location.
Are there cheaper alternatives to using a credit card with Wise?
Yes, using a debit card or bank transfer is often cheaper. Debit card fees are lower, usually between 0.2% and 0.5%, while bank transfers may involve flat fees or no costs, making them ideal for large transfers.
Does Wise support all credit card types?
Wise supports most major credit cards, excluding American Express and Discover. Always check your card’s eligibility before using it for Wise transactions.
What steps can I take to minimize fees with Wise?
To minimize fees, compare payment methods. Bank transfers typically offer the lowest costs. Additionally, match your billing and transfer currencies to avoid extra conversion fees.
Are there any potential drawbacks to using a credit card with Wise?
While credit cards offer fast processing, they come with higher fees, potential cash advance charges, and, in some cases, unfavorable exchange rates. Consider these factors when deciding on your payment method.
Is it safe to use a credit card on Wise?
Yes, Wise employs strong security measures, including encryption and two-factor authentication, to secure transactions. Ensure your account details are protected, and always verify recipient information to prevent errors.
Does using a credit card with Wise earn rewards or cashback?
It depends on your credit card’s reward program. Some cards may allow you to earn points or cashback, but it’s essential to weigh the rewards against potential fees to determine if it’s worth it.
What should I do if my credit card transaction is declined on Wise?
If your transaction is declined, check with your card issuer to see if there are restrictions or limits on international transactions. You can also try an alternative payment method like a debit card or bank transfer.