In the stream of emails I receive daily that promote a product or service, this particular one caught my eye as it was something I had been anticipating. At last, for the first time since 2023, individuals in the USA could obtain a Wise debit card.
I felt thrilled because while Wise.com (previously Transferwise) users in Europe or Asia could access a card to withdraw cash from an ATM, users in the United States couldn’t do the same. While our peers around the globe were utilizing their multi-currency accounts at retail locations and ATMs, we were limited to accessing our funds in Wise accounts only by transferring to another bank account first, incurring a fee in the process. There was no straightforward method to withdraw our own money.
However, the more I examined the terms and conditions related to this card, the more my excitement faded. I admire the company and have frequently recommended their services to others. Yet, I found myself contemplating whether to even acquire this Wise debit card as an emergency backup—that’s how disappointing it is.
Here’s how this card will end up costing you a significant amount just to access your own resources. When you tally up the fees, you’re likely to spend more than you would with your regular bank ATM card when traveling abroad, even if it charges you each time.
An Elevated 2% Fee on Nearly Every Transaction
You may need to pay just to receive this card, which I will discuss shortly, but thereafter this Wise debit card will consistently take money from you again and again. Here’s a simplified overview from their own website:
“The Wise Multi-Currency Card alleviates the stress of utilizing ATMs internationally. You only incur a super-low fee on withdrawals after the first $100.”
Who actually withdraws less than $100 from an ATM?! The only occasion I can recall in the last two decades when I did this was while using a machine in Argentina that restricted customers to $80 at a time. Generally, anyone who knows the ropes withdraws enough cash for an extended period or takes out the maximum allowed.
Thus, the only scenario in which you’d benefit from the “free” withdrawal is if you use the card at a grocery store, pharmacy, or café for a minor purchase. But why use this card at all if you possess a standard bank debit card with no foreign transaction fees and no limitations?
And if you’re partaking in the points and miles strategy, wouldn’t it be better to use a credit card that earns rewards instead and pay that off? Or opt for a debit card that offers cash back? This would rank as the least beneficial card in your wallet.
Upon examining the fine print, my astonishment grew. What they label as a “super-low fee” translates to a 2% charge on every transaction. In simpler terms, for each $100 you withdraw from your own account, you’re returning $2 to Wise.com as a transaction fee. For a typical $500 withdrawal, you’ll shell out a $10 fee to them in addition to any fees imposed by the local bank.
This would make the Wise card the priciest option in my collection of cards aside from (occasionally) Paypal’s. My Fidelity card has no fees and reimburses local charges. My Novo.com business account card has no fees and refunds local charges up to $7 per month. (My preferred ATM in Mexico costs $1.50, so I rarely surpass that.)
My wife’s Capital One 360 card imposes no fees on their part, meaning she only bears the cost of the local bank’s fees. My usual Regions bank card charges a flat fee of $5—half of what Wise charges for a $500 transaction—plus any local charges.
Even if I were to obtain this Wise ATM card, it would rank as #4 on my backup list, or #5 after returning stateside and acquiring a Schwab debit card that incurs no fees. Consequently, a significant streak of bad luck would need to occur before it ever sees the light of day from my safe or a concealed spot I’ve designated while traveling “just in case.”
Incurring Another Fee on Top of the Fee
But hold on, it becomes even less favorable! You’ll face additional charges if you make more than two ATM withdrawals within a single month. You’ll be penalized for the frequency with a $1.50 fee in addition to the 2% fee already charged, any currency conversion fees they apply, and the local bank fees. Here’s the chart from their website:
Therefore, they provide you with this oh-so-useful guidance: “Planning to withdraw cash for a holiday? It’s more economical to make one large withdrawal rather than several smaller ones. This will save you from incurring the fixed 1.5 USD fee every time.” Thanks a lot.
Wise May Charge You $$ Just to Send It
Have you ever had to pay a bank merely to receive one of their debit cards? Probably not, but with Wise you’re already in the negative before the