Why I use Wise Cards for International Travel & Business
When I first started travelling overseas, I found navigating the details of the whole foreign currency/travel card to be a very daunting task and I was obsessed with understanding the hidden costs! Somewhere around 2019, I was lucky enough to discover a very savvy solution that streamlines these processes: Wise.
For anyone who engages in international travel and has had their credit card skimmed, you will know what a pain it is. I like the idea of using a debit card for most of my overseas transactions as my exposure is limited by how much is on the account. I also have two factor authentication and I am notified about every transaction that is undertaken on my phone screen. Most major banks are now doing this, but Wise was doing this 4 years ago.
“I also use Wise to send funds overseas. For example, I send money to a family I sponsor in Sri Lanka every 2 months. It generally takes around 60 seconds from the time I put the amount in... to the time it is in the family’s account. ”
We started using Wise within our business to make international payments easy and low-cost. For example, for the past few years, we needed to pay a supplier a significant sum in GBP (British pounds). We attempted this via Macquarie Bank and OFX, however the bank details provided by the supplier were very complex and did not fit into the forms that Macquarie use. I think it took Grace the best part of a month of going backwards and forwards to get it resolved. This year we made the payment using Wise and it took a couple of minutes.
Here are a few reasons I use Wise, and why I think it’s worth considering using Wise on your next trip:
Transparent & Low Fees:
One of the handy features of Wise Cards is their transparency and fair pricing. Traditional banks often impose hefty fees and hidden charges on international transactions. Wise provides real exchange rates with only a small, upfront fee. This means you get more value for your money when transferring funds or making purchases abroad.
For example: It’s free to withdraw $350 per month internationally with Wise. If you were to withdraw $350 AUD to EUR internationally, the fee at other Australian banks would be:
Wise: $0.00
ANZ: $12.50
CommBank: $12.50
ING: $12.50
NAB: $12.50
Westpac: $12.50
Reference: Australia Price Comparison Research 2023 - Wise
Multi-Currency Functionality:
You can hold up to 40+ currencies at once, and convert them in real time with the free Wise app.
Real Exchange Rates:
Wise employs the real exchange rate without adding a markup aka the ‘mid-market rate’ you see on the news. This ensures that you're not losing money to inflated exchange rates, a common problem when using other financial institutions. I was getting quite frustrated with PayPal on international transactions. Wise is much cheaper and probably more secure.
For example: If you were to convert $500 AUD to USD, this is how much USD other Australian banks would give you:
USD $328 on Wise
USD $321 with NAB & Qantas card
USD $316 with CBA
USD $312 with ANZ
USD $311 with PayPal
Exchange rate as at 27/11/2023. Reference: Money transfer comparison | Compare best exchange rates - Wise
Highly secure:
Wise Cards prioritise the safety of your money with security measures including two-factor authentication and the mobile app provides real-time notifications for every transaction giving you peace of mind and control over your finances.
It took me around 5 minutes to setup my Wise account, and basically you can transfer funds and begin using the digital version of the card on your phone within a few minutes.
We hope this encourages you to explore your options with travel cards so you can reduce hassles and fees to give you more time and money for your trip!