Wise Money Transfer Tutorial 2024: How to Send Money Internationally?

Imagine you’re planning to send money to your family abroad urgently. You’ve been through the hassle of high fees and delayed transfers before. This time, you discover Wise. With its promise of low fees and speedy transfers, you decide to give it a try. This tutorial will guide you through the process of using Wise, making international money transfers simple and affordable.

In today’s globalized world, sending money across borders has become a necessity for many. Whether it’s for supporting family members, paying for services, or conducting business, the need for efficient and cost-effective international money transfers is ever-present. This is where Wise, formerly known as TransferWise, steps in. Founded in 2011 by two friends frustrated with the exorbitant fees and poor exchange rates offered by traditional banks, Wise has since revolutionized the way we think about sending money abroad.

Wise’s key selling points are its transparency, low fees, and use of the mid-market exchange rate, which ensures you get the fairest rate possible. Unlike traditional banks that often charge hefty fees and offer unfavorable exchange rates, Wise provides a more economical and straightforward solution. Moreover, Wise transfers are typically faster, and often completed within hours rather than days.

This tutorial is designed to walk you through the entire process of using Wise, from setting up your account to making your first transfer and exploring advanced features. By the end of this guide, you will have a comprehensive understanding of how Wise works and how you can make the most of its offerings for your international money transfer needs.

Understanding Wise

History and Background

Wise, initially launched as TransferWise in 2011, was the brainchild of two friends, Taavet Hinrikus and Kristo Käärmann. Both were living in different countries and experienced firsthand the high costs and inefficiencies of transferring money internationally through traditional banks. They set out to create a solution that would make sending money abroad easier, cheaper, and more transparent. Over the years, Wise has grown exponentially, serving millions of customers worldwide and transferring billions of dollars each month.

What Makes Wise Unique

Wise stands out in the crowded field of financial services for several reasons:

1. Mid-Market Exchange Rate: Unlike traditional banks and many money transfer services that add a markup to the exchange rate, Wise uses the mid-market rate – the real exchange rate you see on Google or Reuters. This ensures you get the fairest rate possible for your transfer.
2. Low, Transparent Fees: Wise is committed to transparency, clearly showing the fees upfront before you make a transfer. These fees are significantly lower than those charged by traditional banks, making Wise a more cost-effective option.
3. Speed of Transfers: Wise transfers are typically much faster than those made through traditional banks. In many cases, transfers are completed within a few hours, although the exact time can vary depending on the currencies involved and the recipient’s bank.
4. Transparency and Trust: Wise is regulated by financial authorities in every region it operates. This ensures that it adheres to strict security standards, giving users peace of mind when transferring money.

Wise fees

How Wise Works

Wise operates on a unique peer-to-peer system. When you initiate a transfer, Wise matches your currency exchange with someone else who is looking to transfer money in the opposite direction. This system allows Wise to avoid the high costs associated with traditional banking systems, and these savings are passed on to the customers in the form of lower fees and better exchange rates.

By understanding the fundamentals of Wise, you can better appreciate how it offers a more efficient and cost-effective solution for international money transfers compared to traditional methods.

Setting Up a Wise Account

Creating an Account

Getting started with Wise is a straightforward process. Follow these steps to create your account:

1. Visit the Wise Website:
   • Click the “Get a FREE Wise Account” button below to go to the Wise website.

👉 Get a FREE Wise Account ⮕

1. Sign Up:
   • Click on the “Open an account” button.
   • You can sign up using your email address or Google or Facebook account for a quicker registration process.
2. Choose Account Type:
   • Select between a personal account and a business account based on your needs. If you plan to use Wise for business purposes, choose a business account; otherwise, select a personal account.
3. Select Your Country:
   • Choose the country where you live from the dropdown menu. For example, if you live in the US, select the United States and click on “Continue.”
4. Verify Your Phone Number:
   • Enter your phone number and click on “Send Verification Code.”
   • Once you receive the code, enter it in the provided field and click on “Submit.”
5. Set a Password:
   • Choose a strong password for your new Wise account. Enter the password and click on “Continue.”
6. Access Your Dashboard:
   • After creating your account, you will see three options. For now, click on the “Decide later” link at the bottom to proceed to your Wise account dashboard.

This is what you will see every time you log in to your Wise account. The dashboard is your central hub for managing transfers, viewing balances, and accessing other Wise features.

By following these steps, you will have successfully created your Wise account and can begin exploring the platform’s features to manage your international money transfers efficiently.

Verification Process

Verifying your Wise account is essential for security and regulatory compliance. Here’s a detailed guide on how to complete the verification process.

1. Verifying Your Email Address

What’s Email Verification? Email verification is the process of confirming the validity and ownership of an email address. Wise uses this step to authenticate users, keeping all accounts secure. By verifying your email, Wise can better assist in account recovery and notify you of any unauthorized changes to your account.

How Do I Verify My Email Address?

• When you sign up and provide your email, you’ll receive a verification request in your inbox.
• Click on the link within the specified timeframe to verify your email address.
• If you don’t verify your email, you might get limited access to your account.

What Happens If My Account Is Compromised?

• If you believe an incorrect email address was verified on your account, contact Wise support immediately.

2. Identity Verification

Why Does Wise Verify My Identity?

As a financial institution, Wise needs to know who is using its service to combat money laundering and keep everyone’s money safe. Depending on where you’re sending money from and how much you send, Wise will ask you to verify your identity.

Types of Identification Accepted:

• Passport (photo page only)
• National ID Card (with the exception of US military IDs)
• Photo Driver’s License (Electronic Driving Licenses not accepted)

Exceptions and Specific Requirements:

• EU/EEA Residents: Driving licenses are not accepted.
• New Zealand Residents: Must verify identity and address; Kiwi Access Card not accepted.
• Sending JPY: Must confirm My Number along with my ID.
• Brazilian ID Cards: Accepted if issued in the past 15 years.
• Nigerian Documents: Only passports, driving licenses, and the most recent national ID are accepted.
• Russian Government-Issued IDs: Not accepted for new customers or for re-verification.

Other Documents Accepted:

• Passport from another country
• Driving license from another country
• Permanent residency card/Work visa
• Copy of naturalization or citizenship certificate
• Student or other visa valid for more than 6 months

Security of Your Information: All your data, financial details, or documents provided to Wise are stored securely, encrypted, and kept private as per Wise’s privacy policy.

Troubleshooting Verification Issues:

• Document Rejection: Ensure all information is visible, valid, and matches the details on your Wise account. Upload both sides if the document has information on both sides.
• No Response from Wise: Ensure you’ve set up and paid for your transfer as Wise begins verification only after receiving the payment. Check your email for updates.

3. Verifying Your Address

Why Address Verification?

As a financial institution, Wise needs to verify the addresses of its users to combat money laundering and maintain security.

Accepted Proof of Address Documents:

• Utility bills (gas, electric, or landline phone)
• Tenancy or rental agreement
• Bank or credit card statement
• Council tax bill or HMRC notification
• Vehicle registration or tax documents
• Photo driving license showing your address and expiry date
• Government or financial institution-issued documents

Documents Not Accepted:

• Statements or bills older than 3 months
• PO box addresses
• Address proofs issued to a business
• Wise statements or transfer receipts

Important Notes:

• If requested, provide separate documents for ID and address verification.
• Use your residential address if your country recognizes both registered and residential addresses.
• Documents from a Local Authority or FCA-authorized institution issued within the last 12 months are also acceptable.
• Rental agreements must display the address, your name, your landlord’s name, signatures, and tenancy dates.

Verification Timeline:

The verification process typically takes a few hours to a few days. You will receive an email notification once your documents have been reviewed and approved.

By following these steps, you can complete your Wise account verification, ensuring secure and efficient money transfers.

Setting Up Your Profile

After your account is verified, it’s time to set up your profile:

1. Complete Your Profile:
   • Fill in any additional details required for your profile. This might include adding a payment method (such as a bank account or debit card) and setting your preferred currency.
2. Personalize Your Experience:
   • Customize your account settings according to your preferences. This includes setting up notifications, choosing your preferred language, and linking other accounts if necessary.

By following these steps, you’ll be ready to start using Wise for your money transfers.

Managing Your Currencies

One of the standout features of Wise is the ability to hold and manage multiple currencies. Here’s how you can make the most of this feature:

1. Adding Currencies:
   • To add a new currency to your account, go to the “Total Balances” section and click on “Open.” You’ll be able to choose from a wide range of currencies supported by Wise.
2. Holding Balances:
   • Once you’ve added a currency, you can hold a balance in that currency. This is particularly useful if you frequently receive payments in different currencies or if you travel often and want to avoid conversion fees.
3. Converting Currencies:
   • If you need to convert money between different currencies, Wise makes it easy. Simply select the amount you want to convert, choose the target currency, and Wise will show you the exchange rate and any fees before you confirm the conversion.

Making a Transfer

Transferring money abroad with Wise is a straightforward process. Here’s a detailed guide to help you through each step.

Preparing for a Transfer

Before you initiate a transfer, ensure you have the following information:

• Recipient’s Details: Full name, bank account number, and, if applicable, the bank’s SWIFT/BIC code.
• Amount and Currencies: Decide the amount you want to send and the currencies involved (e.g., sending in euros, receiving in British pounds).

Step-by-Step Transfer Process

1. Initiate the Transfer:
   • Click on the Send button at the top left of the dashboard.
2. Enter Transfer Details:
   • Choose the currency you want to send and the currency the recipient should receive. For example, if you’re sending 1,000 euros and the recipient should receive British pounds, select these options accordingly.
3. Select Transfer Type:
   • Wise offers several types of transfers, each with different speeds and fees:
     • Fast Transfer: Pay with a debit or credit card for quicker processing, but with higher fees.
     • Low-Cost Transfer: Manually send money from your bank account to Wise’s account, which then transfers the funds to the recipient. This method is cheaper as it avoids card fees.
     • Easy Transfer: Send money directly from your bank using an online payment, with slightly higher fees than the low-cost transfer.

   For most users, the Low-Cost Transfer is recommended due to its balance of speed and low fees.

4. Review Fees and Rates:
   • Wise will show the fees and the amount the recipient will receive. For instance, if you’re sending 1,000 euros, Wise might charge a fee of 5.14 euros and the recipient will receive the equivalent in British pounds after the fee deduction.
   • You can also view the conversion rate and how it has developed over the past months. The rate is usually guaranteed for a certain period, which varies depending on the currencies involved.
5. Provide Personal Details:
   • Choose whether the transfer is personal or business.
   • Enter your personal details for verification purposes, as Wise is a regulated financial institution. This step ensures security and compliance.
6. Enter Recipient Details:
   • Specify whether you’re sending money to yourself or someone else.
   • Provide the recipient’s email and bank account details. If you don’t have the bank details, Wise can send an email to the recipient to obtain this information.
   • Depending on the recipient’s location, you may need to choose between local bank details or international bank account details (e.g., IBAN).
7. Verify Your Identity:
   • Complete the identity verification process by scanning your ID and your face. This can be done via a link sent to your email or by scanning a QR code.
8. Reason for Transfer:
   • Choose the reason for the transfer, such as personal, business, or other.
9. Review and Confirm:
   • Double-check all the details in the summary to ensure everything is correct.
   • Confirm the transfer and proceed to the payment method selection.
10. Choose Payment Method:
    • Select how you want to fund the transfer. Options include manual bank transfer (recommended for lower fees), debit/credit card, or online banking.
    • Follow the instructions to transfer the funds to Wise’s bank account. Make sure to include the reference number provided to ensure your payment is correctly attributed.
11. Complete the Transfer:
    • Once you’ve made the payment, Wise will process the transfer. You can track its progress in the dashboard under the “Transfers” section.
    • You’ll receive updates on when the money is received by Wise, when it’s converted, and when it’s sent to the recipient’s bank account.

Tracking Your Transfer

• Real-Time Updates: Wise provides real-time updates on your transfer’s status.
• Notifications: Set up email or SMS notifications to receive updates.
• Transfer History: Access your transfer history to view details of past transactions.

Navigating these steps ensures a smooth and efficient money transfer process with Wise.

👉 Get a FREE Wise Account ⮕

Advanced Features

Wise offers several advanced features that enhance its usability and make it a powerful tool for managing international finances. Here’s an overview of these features and how you can make the most of them.

Borderless Account

The Wise Borderless Account is a multi-currency account that allows you to hold and manage money in multiple currencies. This feature is particularly beneficial for frequent travelers, freelancers, and businesses with international clients. Here’s how to use it:

1. Opening a Borderless Account:
   • Navigate to the Borderless account section on your Wise dashboard.
   • Follow the prompts to open a new Borderless account. You can hold and manage balances in over 50 currencies.
2. Receiving Money:
   • Wise provides you with local bank details for different currencies (e.g., a US bank account for USD, a UK account for GBP). Share these details with clients or anyone who needs to send you money.
3. Managing Balances:
   • You can hold multiple currencies in your account and convert them at the real exchange rate when needed. This helps avoid conversion fees when spending or transferring money internationally.
4. Using the Balance:
   • You can use your Borderless account balance to make transfers, pay bills, or use the Wise debit card for spending.

Wise Debit Card

The Wise debit card allows you to spend your money in multiple currencies with minimal fees. Here’s how to get and use the card:

1. Applying for the Card:
   • Go to the debit card section in your Wise account.
   • Follow the instructions to apply for the card. The card will be mailed to your address.
2. Using the Card:
   • The Wise debit card can be used for online and in-store purchases. It automatically uses the local currency balance if available, saving you from conversion fees.
   • Withdraw cash from ATMs worldwide, with low fees and competitive exchange rates.
3. Managing the Card:
   • Use the Wise app or website to manage your card, set spending limits, and freeze or unfreeze the card if needed.

Recurring Payments

For users who need to make regular payments, Wise offers a recurring payment feature. This is ideal for paying bills, rent, or sending regular remittances. Here’s how to set it up:

1. Setting Up a Recurring Payment:
   • Go to the recurring payments section on your Wise dashboard.
   • Enter the details of the payment, including the amount, currency, recipient details, and the frequency of the payment (e.g., weekly, or monthly).
2. Managing Recurring Payments:
   • You can view and manage all your recurring payments in one place. Modify or cancel payments as needed.
   • Wise will automatically process these payments according to the schedule you set, ensuring you never miss a payment.

Multi-Currency Direct Debits

Wise also offers the ability to set up direct debits in multiple currencies. This is especially useful for paying international subscriptions or utility bills. Here’s how to set it up:

1. Setting Up Direct Debits:
   • Navigate to the direct debits section on your Wise dashboard.
   • Enter the details of the service provider and the currency in which you need to make the payment.
2. Managing Direct Debits:
   • View and manage all your direct debits in one place.
   • Ensure there are sufficient funds in the relevant currency to cover the payments.

Tips

1. Maximizing Savings:
   • Always check the exchange rate and fees before making a transfer or conversion.
   • Use the low-cost transfer option whenever possible to minimize fees.
2. Ensuring Security:
   • Enable two-factor authentication on your account.
   • Regularly review your transaction history and report any suspicious activity immediately.
3. Utilizing Notifications:
   • Set up notifications for low balance alerts and transfer updates to stay informed about your account activity.

By leveraging these advanced features, you can enhance your Wise experience and manage your international finances more effectively.

👉 Get a FREE Wise Account ⮕

Tips and Best Practices

Using Wise efficiently can save you money and ensure your transfers are secure. Here are some tips and best practices to help you maximize your experience with Wise.

Maximizing Savings

1. Avoiding Hidden Fees:
   • Wise is transparent about its fees, but it’s always good to double-check the total cost before confirming a transfer. Look for any additional charges that might apply based on the payment method or currency.
2. Getting the Best Exchange Rates:
   • Wise uses the mid-market exchange rate, which is the fairest rate available. However, exchange rates fluctuate throughout the day. If your transfer isn’t urgent, consider monitoring the rates and initiating your transfer when the rate is most favorable.
3. Timing Your Transfers:
   • Exchange rates can be more favorable at certain times of the day or week. Try to avoid making transfers during weekends or holidays when the market is closed, as this can sometimes lead to less favorable rates.
4. Using the Low-Cost Transfer Option:
   • Whenever possible, use the low-cost transfer option. This method involves sending money from your bank account to Wise’s bank account, which then transfers the funds to the recipient. It’s generally the cheapest way to transfer money through Wise.

Ensuring Security

1. Enabling Two-Factor Authentication (2FA):
   • Two-factor authentication adds an extra layer of security to your account. Enable 2FA in your account settings to protect against unauthorized access.
2. Using Strong Passwords:
   • Ensure your Wise account password is strong and unique. Use a mix of letters, numbers, and special characters, and avoid using the same password across multiple accounts.
3. Recognizing and Avoiding Scams:
   • Be wary of phishing emails or messages that ask for your account details. Wise will never ask for your password or sensitive information via email. If something seems suspicious, contact Wise support directly.
4. Regularly Reviewing Account Activity:
   • Periodically check your account activity for any unusual or unauthorized transactions. If you notice anything suspicious, report it to Wise immediately.

Utilizing Notifications

1. Setting Up Notifications:
   • Enable email or SMS notifications for important account activities such as transfers, balance changes, and security alerts. This keeps you informed about your account status and any actions taken.
2. Customizing Alerts:
   • Customize your notification settings to receive alerts for low balances, completed transfers, and upcoming payments. This helps you stay on top of your finances and avoid any missed payments.

Additional Tips

1. Understanding Transfer Times:
   • Transfer times can vary based on the currencies involved and the recipient’s bank. Wise provides an estimated delivery time before you confirm the transfer. Be aware of these times, especially if your transfer is time-sensitive.
2. Using the Wise App:
   • The Wise app offers the same functionality as the web platform but with the convenience of on-the-go access. Use the app to initiate transfers, manage your account, and receive real-time notifications.
3. Referring Friends:
   • Wise offers a referral program where you can earn rewards by inviting friends to use the service. Share your referral link and enjoy the benefits when your friends sign up and make their first transfer.

By following these tips and best practices, you can ensure that your Wise experience is as cost-effective and secure as possible.

Real-Life Examples

To illustrate the practical benefits of using Wise, here are some real-life examples of how individuals and businesses have effectively utilized Wise for their international money transfer needs.

Case Study 1: Personal Transfer

Jane’s Story: Sending Money to Family Abroad

Jane is an expatriate living in the United States, and she regularly sends money to her family in India. Previously, she used traditional banks for her transfers, which often resulted in high fees and unfavorable exchange rates, causing significant reductions in the amount her family received.

Discovering Wise:

• Jane learned about Wise from a friend and decided to give it a try. She was impressed with the transparency of Wise’s fees and the real exchange rate used for conversions.

The Process:

• Jane set up her Wise account and verified her identity within a few hours.
• She initiated a transfer of $1,000 to her family in India, selecting the low-cost transfer option to minimize fees.

The Outcome:

• The total fee for the transfer was significantly lower than her previous bank charges.
• Her family received the money in their Indian bank account within 24 hours, much faster than the usual 3-5 days with traditional banks.
• Jane was able to track the transfer in real time and received notifications at each step.

Impact:

• Jane’s family received more money due to the better exchange rate and lower fees.
• She felt more confident and satisfied with the transfer process, knowing exactly what fees were charged and the timeline for delivery.

Case Study 2: Business Transfer

Mark’s Story: Managing International Supplier Payments

Mark owns a small e-commerce business in the UK, and he regularly purchases goods from suppliers in Europe and Asia. Managing these international payments through his bank was costly and time-consuming, affecting his cash flow and profit margins.

Switching to Wise:

• Mark decided to use Wise for his international supplier payments after hearing about its cost savings and efficiency from a business associate.

The Process:

• He opened a Wise Borderless account, allowing him to hold and manage balances in multiple currencies.
• Mark set up recurring payments for his European and Asian suppliers, ensuring timely and consistent payments each month.

The Outcome:

• By using Wise’s low-cost transfer option, Mark saved a significant amount on transaction fees.
• The transfers were completed quickly, often within a day, improving his relationship with suppliers due to timely payments.
• Mark was able to manage his international finances more effectively, holding euros and USD in his Borderless account and converting them when rates were favorable.

Impact:

• Mark’s business saw improved cash flow and higher profit margins due to the savings on transaction fees.
• The ability to manage multiple currencies and make quick, cost-effective transfers helped Mark streamline his international operations and focus more on growing his business.

Conclusion: The Practical Benefits of Wise

These real-life examples highlight the practical advantages of using Wise for both personal and business transfers. Individuals like Jane benefit from lower fees and faster transfer times, ensuring their loved ones receive more money and quickly. Businesses like Mark’s can optimize their international payments, improve cash flow, and build stronger relationships with suppliers.

By choosing Wise, you can experience these benefits firsthand, making your international money transfers more efficient, cost-effective, and reliable.

Final Thoughts

Wise stands out as a reliable and efficient platform for international money transfers. Its commitment to transparency, low fees, and the use of the mid-market exchange rate ensures that you get the best value for your money. Whether you’re an individual sending money to family abroad or a business managing international payments, Wise offers the tools and features to make the process straightforward and cost-effective.

Encouragement to Start Using Wise:

If you haven’t yet tried Wise, now is the perfect time to start. By following this tutorial, you’ll be well-equipped to set up your account, make transfers, and take advantage of Wise’s advanced features. Experience the ease and savings of Wise for yourself and see why millions of users worldwide trust Wise for their international money transfer needs.

Invitation to Explore More:

Wise continuously innovates and adds new features to enhance user experience. Stay updated with the latest developments by exploring Wise’s website and blog. Whether you’re looking for tips on maximizing savings or learning about new features, there’s always something new to discover.

Start your Wise journey today and enjoy a better way to send money abroad.

👉 Get a FREE Wise Account ⮕