Transferwise: how does it work? Reviews + promo code

Get a Transferwise promo code by clicking on this link: https: //transferwise.com/invite/u/jean-benoitm1. Your first transfer will be 100% free.

Transferwise is a service that allows you to have a multi-currency account for free, get a withdrawal card and send or receive money in (almost) any country at a low cost.

Let’s see how it works.

I already have an N26, Revolut or Boursorama Ultim card, what is Transferwise for?

N26, Revolut or Boursorama Ultim are neo-banks that have revolutionized money management when traveling. Thanks to the cards they offer, there is no need to worry about exchange rates. Wherever you are, you will benefit from the real exchange rate without commission when you pay or withdraw money with your card. This saves you a lot of fees.

On the other hand, these banks do not solve the problems of receiving and sending money in foreign currencies.

• N26 only handles euro transfers within the SEPA zone.
• A transfer outside the SEPA zone will cost you between 16 and 32 euros.
• With Boursorama, it will cost you a minimum of €20.

Having needed to make a transfer outside the SEPA zone to pay our provider in Egypt for our cruise on the Nile, we were able to experience how complex and expensive the experience of a transfer outside the SEPA zone is (especially since between the fees of your bank and those of the beneficiary, you never know how much it will cost us).

With Transferwise, it’s just the opposite: it’s simple and inexpensive 🙂

Creating a Transferwise account and obtaining account numbers

Creating a Transferwise account is as easy as creating an account on any website.

Once registered, you can start creating “Scales”. A balance is simply an account in a given currency. Transferwise manages over 50 currencies so there is plenty to do. You can even create a balance with Zambian Kwacha so there is plenty to do.

For 6 currencies: Euro (EUR), Australian dollar (AUD), British pound (GBP), New Zealand dollar (NZD), Singapore dollar (SGB) and US dollar (USD), you can even get a local account number.

For that, I first had to feed (by credit card) my balance in euros (with a minimum of 20 euros) and bring a proof of identity (passport, national identity card or driving license). While I did the process on a Sunday morning, the validation took less than 5 minutes.

Once the verification is done, you get a RIB to receive money in Euro.

Or an account number to receive transfers in New Zealand dollars.

I’ve never had this need before but I think it’s a really perfect solution for those in PVT in New Zealand or Australia. It’s also ideal for freelancers who need to bill foreign clients.

How to feed a scale?

If you want to send money to someone, you will have to feed one of your scales. If you are European, the simplest and cheapest way is to feed your balance in euro.

As a French person, we have two options:

• A credit card feeding which has the advantage of being instantaneous but which will generate some expenses (barely 41 cents) in this example of a 100 euros feeding.
• A feed by bank transfer which will take a few days but will be free of charge.

There are other options for residents of other European countries but I don’t know what they are.

How do I make a transfer in a foreign currency with Transferwise?

Let’s take the example of an Egyptian travel agency that I have to pay for my Nile cruise in Egyptian pounds (EGP). Let’s say it costs 18 084 EGP (the equivalent of 1000 euros).

Go to Transferwise’s fee comparator and calculate how much it would cost in Euro to send a shipment of 18,084 EGP. This would cost 1012.46 EUR, including 12.84 EUR in fees.

You must therefore top up your balance in euros with the corresponding amount, preferably by bank transfer so as not to incur additional costs.

Once the balance is loaded, it’s very simple, click on “Send Euros”, choose the country where you want to send money and the recipient’s details. If you don’t know the account number, you can enter his e-mail. Transferwise will send them a message asking them to enter their account number. How convenient!

So it costs €12.84 to send the equivalent of 1000 euros in Egyptian pounds.

In November 2018, I had done the same operation with Boursorama, it had cost me 35 €, almost three times more!

And I spare you the stress related to delays, requests for supporting documents, …

The Transferwise Mastercard payment card

For 6€ (to be paid once), you can get a Mastercard payment card that you can use to pay or withdraw money anywhere in the world.

You will not be charged for payments in foreign currencies for which you have a funded balance.

If you do not have the currency in which you are spending, you will be charged between 0.24% and 3.69% depending on the country.

ATM withdrawals are limited to 200 euros per month. Beyond this amount you will pay a 2% fee.

If these fees are correct compared to traditional banks, I don’t find the Transferwise card very attractive. Unless you only use it to pay in a currency you have (and don’t withdraw money from the ATM), you should rather transfer your money to an N26, Revolut or Boursorama Ultim card, you will have much lower fees.

A Transferwise sponsorship code

If you wish to create a Transferwise account, I suggest you use my referral code, your first transfer will be 100% free: https: //transferwise.com/invite/u/jean-benoitm1