In a landscape oversaturated with marketing emails, one particular message recently piqued my interest. It declared the launch of the Wise debit card for customers in the USA, a long-anticipated move since 2023. Until now, while Wise.com (previously Transferwise) users in Europe and Asia benefitted from the ability to access their multi-currency accounts straight from ATMs, American users had to shift money to other bank accounts and face fees.
Yet, after reviewing the terms and conditions, my earlier enthusiasm diminished. Even though I regularly recommend Wise, I found myself reluctant to obtain this debit card, even as a backup for emergencies, due to its steep fees.
The card carries a hefty 2% fee on nearly all transactions. While the initial $100 withdrawal is free of charge, subsequent withdrawals incur this fee, rendering it pricier than a conventional bank ATM card overseas. For example, a $500 withdrawal would add an extra $10 in fees, exceeding those of other cards like Fidelity or Capital One 360, which have little to no fees.
Additionally, Wise imposes a $1.50 fee for more than two ATM withdrawals each month, on top of any currency conversion and local bank charges. This situation encourages making larger withdrawals to evade frequent fees.
To add to the annoyance, Wise might levy a fee merely to deliver the card. Though my order indicated a “Free” shipping option, the standard cost is $9 for personal accounts and $5 for business accounts. Conversely, incorporating the card into a digital wallet avoids this shipping fee, yet the transaction fees persist as a hindrance.
The complete terms and conditions are hard to find, with non-functioning links on Wise’s website, leaving prospective users unaware of further charges, including fees for replacing lost cards or costs related to currency conversion.
In spite of these drawbacks, I decided to place an order for the card as a safety measure, given the free shipping offer. Wise’s key benefit is its multi-currency storage, which theoretically enables withdrawals in local currencies while traveling. However, the actual savings remain uncertain due to potential conversion fees.
In the end, the Wise debit card appears to serve more as a backup solution than a principal financial instrument, considering its high fees in comparison to other cards. For those aiming to reduce travel expenses, more advantageous alternatives are available, permitting more funds for enjoyable activities rather than bank fees.