When it comes to sending money internationally, Wise (formerly TransferWise) has become a go-to platform for its low fees and competitive exchange rates. But if you’re like me, you might wonder if you can use your credit card to fund transactions on Wise. After all, credit cards offer convenience and sometimes even rewards, making them a popular choice for payments.

Understanding how Wise works with credit cards can help you decide if it’s the right option for your needs. Whether you’re paying someone abroad or managing personal finances, knowing the payment methods available—and their costs—can save you time and money. Let’s dive into whether credit cards are compatible with Wise and what you should consider before using one.

What Is Wise And How Does It Work?

Wise, formerly known as TransferWise, facilitates international money transfers with transparent fees and real exchange rates. It operates as an online platform and mobile app, enabling users to send, receive, and convert money across over 170 countries.

The platform uses a local transfer system to reduce costs. For instance, I fund a transfer in my currency, and Wise pays the recipient from a local account in their currency. This process eliminates intermediary bank charges, ensuring lower fees and faster transactions.

I can choose from multiple payment methods, including bank transfers and credit cards, depending on the region. Wise provides clarity by showing upfront fees and delivery times before confirming a transfer.

This service is widely used for purposes like paying overseas invoices, supporting family abroad, or conducting international business transactions.

Can You Pay Wise With A Credit Card?

Yes, Wise accepts credit card payments for funding transactions. This provides flexibility for users, but it’s important to weigh the benefits against potential costs.

Supported Payment Methods

Wise supports several payment methods, including credit cards (Visa, Mastercard, and sometimes American Express), debit cards, and bank transfers. Availability depends on the payer’s country. Additionally, users in select regions can use alternative options like Apple Pay and Google Pay. Wise provides a detailed breakdown of accepted methods during the payment process.

Credit Card Payments On Wise: Pros And Cons

Pros:

• Convenience: Credit cards allow quick and hassle-free international payments.
• Rewards: Users may earn points, miles, or cashback from their credit card providers on transactions.
• Flexibility: Ideal for individuals needing to transfer funds without immediate bank account access.

Cons:

• Higher Fees: Using credit cards incurs additional costs compared to bank transfers.
• Cash Advance Charges: Some issuers treat credit card payments on Wise as cash advances, leading to higher interest rates and fees.
• Limitations: Not all cards are accepted, and some regions may restrict credit card use for money transfers.

Understanding these factors helps users decide if funding Wise transfers with a credit card aligns with their financial goals.

Fees Associated With Using A Credit Card On Wise

Using a credit card on Wise involves additional fees compared to other payment methods like bank transfers. Wise applies a processing fee of 1.1% to 2.5% for credit card payments, depending on the card type, currency, and region. This fee is charged to cover the cost of handling card transactions and varies by transaction specifics.

Credit card issuers may also impose cash advance fees if they classify Wise payments as cash-equivalent transactions. These fees typically range from 2% to 5% of the total amount or a fixed minimum charge, whichever is greater. It’s important to confirm with your credit card provider how such payments are categorized to avoid unexpected costs.

Exchange rate markups are not a concern when using Wise, as the platform offers real mid-market rates without hidden margins. However, international usage fees might apply if the credit card is not designed for global transactions. Checking for charges like foreign transaction fees, which are usually 1% to 3%, ensures accurate budgeting.

Understanding these fee structures helps me decide if using a credit card aligns with my transaction needs or if alternative methods would be more cost-effective.

How To Use A Credit Card For Wise Payments

Using a credit card to fund Wise payments offers flexibility, but it’s essential to approach the process with attention to detail. Follow these steps and tips to ensure a smooth transaction experience.

Step-by-Step Guide

1. Log in to your Wise account: Access your account on the Wise website or mobile app. If you don’t have an account, create one by providing the required details and verifying your identity.
2. Start a transfer: Select the option to send money and enter the transfer amount and recipient details. Wise will display an estimate of fees and delivery time.
3. Choose payment method: On the payment screen, pick “Credit Card” as the funding source. Wise supports Visa, Mastercard, and sometimes American Express, depending on the region.
4. Enter card details: Provide accurate credit card information, including the card number, expiry date, CVV, and billing address matching the card.
5. Verify payment: Complete any additional verification required by your card issuer, such as entering a one-time PIN or responding to an authorization alert.
6. Confirm the transfer: Review the payment summary, including fees, exchange rates, and delivery time. Confirm to finalize the transaction. You’ll receive a notification once the payment is processed.

Important Tips To Avoid Issues

• Check card compatibility: Confirm that your card issuer allows international payments on Wise and won’t classify transactions as cash advances.
• Be mindful of fees: Review the credit card processing fee (1.1%-2.5%) on Wise and any potential issuer-imposed fees, such as foreign transaction or cash advance charges.
• Use a reliable card: Use cards designed for global usage, such as those with no foreign transaction fees or offering rewards for international payments.
• Ensure sufficient credit limit: Verify that your credit card limit accommodates the transfer amount and associated fees to avoid declined payments.
• Avoid multiple attempts: If a transaction fails, contact your credit card issuer instead of retrying repeatedly to prevent restrictions on your card.

Accurately entering card details while staying informed about associated charges ensures hassle-free Wise payments with credit cards.

Alternatives If Credit Cards Are Not Accepted

1. Bank Transfers

Bank transfers provide a secure and cost-effective payment method. Wise supports both local bank transfers and international wire transfers. Local transfers are usually free or inexpensive, while international wire transfers may carry bank-imposed fees.

1. Debit Cards

Debit cards are a convenient alternative, offering lower fees compared to credit cards. Visa and Mastercard debit cards are widely accepted by Wise, ensuring quick processing for online transactions.

1. Direct Debit

Direct debit allows users to link a checking account for automatic transfers. This option is efficient for recurring payments, though availability depends on the transaction’s origin country.

1. Apple Pay and Google Pay

Digital wallets like Apple Pay or Google Pay can be used on Wise if supported in the region. These methods offer a fast, secure, and smartphone-compatible way to transfer funds.

1. Wise Account Balances

Using available funds within a Wise account eliminates external processing fees. Users can add money to their balance via supported methods and pay directly through the platform.

1. Third-Party Payment Platforms

Platforms like PayPal or Revolut work for transferring funds indirectly. Converting funds to a Wise-supported payment method may involve additional processing steps and fees.

1. ACH Payments (US)

ACH payments are a low-cost option for users within the United States. These electronic bank-to-bank transfers are ideal for larger transactions with minimal costs.

Conclusion

Using a credit card on Wise offers convenience and flexibility, especially for those seeking quick payments or earning rewards. However, it’s essential to weigh the benefits against the potential costs, such as processing fees and cash advance charges. Exploring alternative payment options like bank transfers or debit cards can sometimes be more cost-effective, depending on your needs.

Ultimately, understanding the fee structures and selecting the most suitable payment method can help you make the most of Wise’s transparent and user-friendly platform. Whether you’re paying overseas invoices or supporting loved ones abroad, Wise provides a range of options to suit different preferences and budgets.

Frequently Asked Questions

1. Does Wise accept credit card payments?

Yes, Wise accepts credit card payments, including Visa, Mastercard, and sometimes American Express. Availability may vary by country. However, using a credit card might incur higher processing fees compared to other methods.

2. What are the fees for using a credit card on Wise?

Wise charges a processing fee of 1.1% to 2.5% for credit card payments. Additional fees, such as cash advance charges from card issuers, may apply based on your credit card provider.

3. Are there benefits to using a credit card on Wise?

Yes, benefits include convenience, potential rewards, and flexibility, especially for users without immediate access to bank accounts.

4. What are the drawbacks of using a credit card on Wise?

Drawbacks include higher fees, potential cash advance charges from credit card issuers, and the possibility of certain cards being declined in specific regions.

5. How do I use a credit card for payments on Wise?

Log into your Wise account, start a transfer, select “credit card” as the payment method, and enter your card details carefully. Ensure your card is authorized for international payments.

6. Does Wise impose hidden fees for credit card payments?

No, Wise provides transparency in all fees. The platform uses real mid-market exchange rates without hidden markups. However, credit card issuers may charge additional fees.

7. What alternative payment methods does Wise offer?

Wise supports payment options like bank transfers, debit cards, ACH payments (in the U.S.), direct debit, digital wallets (Apple Pay, Google Pay), and Wise account balances.

8. How does Wise maintain low fees for international transfers?

Wise uses a local transfer system, sending money from a local account in the sender’s currency and paying the recipient from a local account in their currency.

9. Can credit card payments on Wise incur cash advance fees?

Some credit card issuers may categorize Wise payments as cash advances, leading to additional fees, usually between 2% and 5%. Check with your card provider beforehand.

10. How long does a Wise transfer take when using a credit card?

Transfer times depend on multiple factors, including the currency and recipient’s country, but they typically range from a few minutes to 1-2 business days.

11. Is Wise safe to use with a credit card?

Yes, Wise is secure and utilizes encryption to protect user information. However, ensure your credit card is designed for international payments to avoid transaction issues.

12. Are there cards that Wise does not accept?

Wise may not accept certain prepaid cards or regionally restricted credit cards. It’s advisable to verify your card’s compatibility for international transfers before attempting a transaction.

13. Can I avoid fees when paying with a credit card on Wise?

To minimize costs, consider using credit cards with no foreign transaction fees or rewards that offset processing charges. Alternatively, explore lower-fee payment methods like bank transfers.

14. What credit card types work best with Wise?

Credit cards with no foreign transaction fees and those designed for international use, such as travel rewards cards, work best for Wise payments.

15. Does Wise accept American Express cards?

Wise supports American Express in some regions, but availability is limited. Confirm whether Amex is accepted in your country before attempting a payment.