Title: Wise Debit Card Makes Its Comeback in the U.S.—But Is It Worthwhile?
After an extended absence, Wise (previously known as TransferWise) has re-launched its debit card for users in the United States. For many who depend on Wise’s multi-currency accounts for international travel and business, this announcement initially generated enthusiasm. However, a deeper analysis of the card’s conditions and fees indicates that this long-anticipated product may not meet expectations—particularly for U.S.-based customers used to more advantageous banking solutions.
Here’s a summary of what the Wise debit card provides and why it may not be the ideal travel companion you anticipated.
A Long-Awaited Comeback
Starting in 2023, U.S. customers lost access to a Wise debit card, while users in Europe and Asia continued enjoying the ease of withdrawing cash from ATMs or making overseas purchases. For American users, the sole method to access their Wise funds was through transferring money to a domestic bank account—frequently incurring fees and delays.
The return of the Wise debit card in the U.S. aimed to remedy this situation. Customers can now use their Wise accounts to make purchases or withdraw cash directly. Yet, this convenience comes at an additional price.
The 2% Fee That Quickly Accumulates
One of the most significant drawbacks of the Wise debit card is its fee structure. While Wise markets a “super-low fee” for ATM withdrawals, the reality is that users get only the first $100 in ATM withdrawals per month at no charge. Beyond that point, a 2% fee applies.
To provide context: if you withdraw $500 from an ATM, you’ll owe Wise $10 in fees alone. This excludes any local ATM charges or currency conversion fees. For frequent travelers or digital nomads reliant on ATM withdrawals, these fees can escalate rapidly.
In contrast, many U.S. banks provide debit cards without foreign transaction fees and even reimburse ATM expenses. For instance:
– Fidelity’s debit card charges nothing and refunds all ATM fees.
– Novo.com’s business account refunds up to $7 in ATM fees monthly.
– Capital One 360 and Charles Schwab debit cards facilitate fee-free international withdrawals and have no foreign transaction fees.
When compared to these alternatives, the Wise debit card stands out as one of the pricier options for accessing your own funds abroad.
Additional Fees for Frequent Withdrawals
Wise doesn’t merely impose a percentage-based fee after the initial $100 in withdrawals. If you exceed two ATM withdrawals in a month, you’ll incur an extra $1.50 for each transaction. This means if you’re traveling and require multiple withdrawals, you’ll pay both a flat fee and the 2% fee along with any local ATM costs.
Wise suggests making one significant withdrawal instead of several smaller ones. Although this might help reduce fees, it isn’t always practical or safe—especially in regions where carrying large sums of cash poses a risk.
You Might Have to Pay to Receive the Card
Another unexpected downside: you may need to pay to obtain the Wise debit card. While some users report receiving the card at no charge, others have been quoted $5 to $9 for shipping, depending on whether they hold a personal or business account.
There is a workaround—adding the card to your digital wallet via Apple Pay or Google Pay. However, even then, the elevated transaction fees make it a last-resort option rather than a go-to travel card.
Lack of Clarity on Terms and Missing Information
Transparency is another area where Wise falters. The comprehensive terms and conditions for the debit card were not easily accessible at the time of writing, with links on the ordering page leading to 404 errors. This lack of clarity raises flags about potential hidden charges, such as those for currency conversion or card replacement in the event of loss or theft.
While Wise is generally recognized for its transparency and affordable international transfers, the debit card offering appears to be an exception.
The One Benefit: Multi-Currency Capability
To be fair, the Wise debit card does provide one distinctive advantage: the ability to hold and spend in various currencies. If you already possess euros, yen, or pounds in your Wise account, you can utilize the card to spend directly in those currencies—possibly avoiding conversion fees.
Nevertheless, even this feature has limitations. If you lack adequate funds in the local currency, Wise will automatically convert from another currency in your account—likely incurring extra fees.
A Secondary Option, Not a Primary Choice
Considering the hefty fees and limited advantages, the Wise debit card is best regarded as a secondary option rather than a primary travel card. It may be worthwhile to keep in your wallet for emergencies, particularly if you already use Wise for currency transfers or international payments. But for regular usage, there are significantly better options provided by traditional banks and fintech companies alike.
Final Verdict