In the deluge of e-mails I receive daily that promote a product or service, this particular one caught my attention because it was exactly what I had been anticipating. At last, for the first time since 2023, customers in the USA could obtain a Wise debit card.
I was thrilled because while Wise.com (previously Transferwise) clients in Europe and Asia could access a card to withdraw money from an ATM, users in the United States had been excluded from this option. Whereas our counterparts worldwide accessed their multi-currency accounts at retailers and ATMs, we had to transfer money to another bank account first, incurring a fee on that transaction. There was no straightforward method to access our own funds.
However, the deeper I delved into the card’s terms and conditions, the more disheartened I became. I admire the company and have recommended their service countless times. Yet, I found myself questioning whether to even acquire this Wise debit card as a backup for emergencies—that’s how disappointing it is.
Here’s how getting to your own money with this card will cost you a significant amount. When you tally up the fees, you’ll likely end up shelling out more than you would with your regular bank ATM card overseas, even if it incurs charges each time.
A Steep 2% Fee on Nearly Every Transaction
You might have to pay just to receive this card, which I’ll address shortly, but after that, this Wise debit card will continue to siphon money from you each time you use it. Here’s a simplified summary from their website:
“The Wise Multi-Currency Card eliminates the stress of using ATMs internationally. You only pay a minimal fee on withdrawals after the first $100.”
Who ever withdraws less than $100 from an ATM?! The only occasion I’ve done that in the last two decades was when I used a machine in Argentina that limited withdrawals to $80 at a time. Otherwise, anyone who knows what they’re doing withdraws enough cash to last for a while or the maximum amount permitted.
Thus, the only time you’ll benefit from a “free” withdrawal is if you use the card at a grocery store, pharmacy, or café for a small purchase. But why bother using this card at all when you have a regular bank debit card with no foreign transaction fees and no limits?
And if you’re into earning points and miles, wouldn’t you be better off using a credit card that provides rewards and then pay it off? Or a debit card that offers cash back? This card would be the least beneficial in your wallet.
When I examined the fine print, I was taken aback. What they refer to as a “minimal fee” is actually 2% on each transaction. In other words, for every $100 you withdraw from your own account, you are giving $2 back to Wise.com as a processing fee. On a typical $500 withdrawal, you’ll incur a $10 fee in addition to whatever local bank charges apply.
That would render this Wise card the priciest option among my cards, not counting (at times) Paypal’s. My Fidelity card charges $0 and reimburses local fees. My Novo.com business account also charges $0 and refunds local fees up to $7 per month. (My preferred Mexican ATM charges $1.50, so I rarely exceed that.)
My wife’s Capital One 360 card incurs no charges on their end, so she only pays the local bank fees. My regular Regions bank card assesses a flat $5 fee—half of what Wise charges for a $500 transaction—along with local fees.
Even if I were to receive this Wise ATM card, it would rank fourth on my backup list, or fifth once I’m back in the states and can order a Schwab debit card with no fees. That means I would have to hit an exceptionally unlucky streak before it ever sees the light of day from my home safe or from a concealed spot while traveling “just in case.”
Pay Another Fee on Top of the Fee
But hold on, it gets worse! It appears you will face even more fees if you make more than two ATM withdrawals in a single month. You’ll incur a penalty for the frequency, adding a $1.50 fee on top of the existing 2% fee, any currency conversion charges, and local bank fees. Here’s the chart from their website:
So they provide you with this oh-so-generous counsel: “Need cash for your holiday? It’s more cost-effective to make one substantial withdrawal rather than several smaller ones. This will prevent you from incurring the fixed $1.50 fee each time.” Thanks a lot.
Wise May Charge You $$ Just to Mail It
Have you ever been charged by a bank just to receive one of their debit cards? Probably not, but with Wise, you’re at a disadvantage before the