- Quicker international bank transfers!
- Better currency exchange rates!
- Lower fees than any bank can offer!
Sounds terrific, right? Well, it is! Welcome to the 21st century of banking via TransferWise.com!
No, it’s not actually a bank and doesn’t offer super profitable deposits or loans. But they do specialise in one thing, and it’s something that we business owners face on a regular basis – international bank transfers.
If you buy stock for your eBay business from abroad, quite often you’ll need to make international money transfers. Now that’s ok if your supplier is happy to take card payments or PayPal but quite often the only way to pay is by sending a wire transfer via your bank.
So that means either visiting your local branch OR sending the payment through online banking, paying a small fortune in fees while receiving the worst exchange rate imaginable. If we’re talking about a payment of a few thousand pounds or more, then you lose out – big time.
And even with PayPal or a credit card, when you’re paying in a different currency than your base account, chances are the exchange rate you’re getting is far from the best. Plus most companies will charge extra if you pay via PayPal or credit card as they have to cover the payment fees at their end.
TransferWise fixes all of these problems! Now you can send money to international bank accounts without leaving your office and most importantly without overpaying in fees!
Here’s what TransferWise currently offers:
- Quick (2-3 days, usually less than a day) bank transfers to all Euro Zone countries, USA and many more!
- Super low fees at just 1 pound for payments below £200 and 0.5% for anything above. This means, a £2000 payment would cost you just 10 quid and that’s WITHOUT considering the savings you make with better currency exchange rates.
- Real time, mid-market currency exchange rate. This really is their strongest feature and often the saving you make with the exchange rate offsets the transfer fee altogether!
Unfortunately China is not yet in the list of supported countries, and neither is Hong Kong. But I’m sure it’s just a question of time as from the TW blog you can see that they’re introducing new countries all the time and it is very unlikely that China will be left out.
Of course, if you mainly do simple EUR transfers to other European countries AND your income/bank account is in EUR, this service is not much use to you as banks do offer cheap & fast EUR transfers within the EU. BUT if you need to transfer Euros from a GBP bank account, check out TWs exchange rate as I’m almost certain it will be better than what your bank offers.
I have personally started using Transfer Wise for USA payments – as most US wholesalers prefer to receive payments via wire transfer. So if you’re doing any wholesale transactions with US based suppliers, you should definitely check this service out!
Lastly, a quick reminder that you should only pay via wire transfer to companies you trust 100%. Companies you have made multiple orders with, or established European and American companies. If at all possible, try avoiding wire transfers for your first order even if it means paying a bit more in fees. PayPal and credit cards are still significantly safer than wire transfers, which offer no payment protection at all.
To sum it up – yet another great service coming from the creators of Skype & PayPal! I’m almost certain that in the upcoming years TransferWise.com will become a household name for international bank transfers and ‘real’ banks will have to change too because of this, simply to stay competitive in this market.
P.S. As for the safety of your money – you really do not need to worry about that. Transfer Wise is a 100% legit, genuine company and fully FSA regulated. As I said, the company was launched by the same people who built Skype & PayPal and has received millions upon millions of dollars from investors so far.