In the deluge of emails I receive daily promoting various products or services, this particular one caught my attention because it was something I had long anticipated. At last, for the first time since 2023, customers in the USA were able to obtain a Wise debit card.
I was thrilled because while Wise.com (previously Transferwise) customers in Europe or Asia had the option to use a card for ATM withdrawals, users in the United States had been excluded from that privilege. As our global counterparts were able to access their multi-currency accounts at stores and ATMs, we were forced to transfer funds to another bank account first and incur fees in the process. There was no straightforward method to withdraw our own money.
However, the more I delved into the terms and conditions associated with this card, the more let down I felt. I appreciate the company and have often recommended their services. Yet, I found myself contemplating whether to even acquire this Wise debit card as an emergency backup—which speaks volumes about its drawbacks.
Here’s how this card will cost you a considerable amount just to access your own funds. When you tally up the fees, you will likely end up paying more than you would using your traditional bank ATM card abroad, even if it imposes charges every usage.
A High 2% Fee on Nearly Every Transaction
You may need to pay just to receive this card, which I’ll detail shortly, but afterward, this Wise debit card will repeatedly take money from you. Here’s a simplified overview from their official site:
“The Wise Multi-Currency Card eliminates the hassle of using ATMs abroad. You only pay a very low fee on withdrawals after the first $100.”
Who withdraws less than $100 from an ATM?! I think the only instance I’ve done that in the past two decades was at a machine in Argentina that capped withdrawals at $80. Otherwise, anyone wise enough will take out a sufficient amount of cash to last or withdraw the maximum permissible.
Thus, you’ll only get the “free” withdrawal if you opt to use the card at a grocery store, pharmacy, or coffee shop for a minor purchase. But why bother using this card if you have a regular bank debit card that has no foreign transaction fees and no withdrawal limits?
And if you’re engaged in the points and miles strategy, wouldn’t you be better off using a credit card that earns rewards instead and paying it off? Or utilizing a debit card that provides cash back? This card would end up being the least valuable in your wallet.
After examining the fine print, my astonishment grew. What they describe as a “super-low fee” is actually 2% on every transaction. In reality, for each $100 you withdraw from your own account, you’re effectively giving Wise.com $2 as a transaction fee. For a standard $500 withdrawal, you’ll incur a $10 fee along with any charges from the local bank.
This would position the Wise card as the most costly in my collection of cards to use, second only to (occasionally) PayPal’s. My Fidelity card charges $0 and compensates local fees. My Novo.com business account card charges $0 and reimburses local fees up to $7 monthly. (My preferred Mexican ATM has a $1.50 charge, so I rarely exceed that.)
My wife’s Capital One 360 card applies no charge from their end, so she only faces the local bank fee. My common Regions bank card carries a flat $5 fee—half of what Wise charges for a $500 transaction—plus local fees.
Consequently, even if I obtained this Wise ATM card, it would rank #4 on my backup list, or #5, after I return to the states and can request a Schwab debit card with zero fees. That means I would need to face an extraordinary streak of bad luck before it ever sees the light outside my home safe or wherever I’ve stashed it during travel “just in case.”
Prepare for More Fees on Top of Existing Fees
But hold on, it gets even worse! It appears you will incur additional fees if you make more than two ATM withdrawals in a month. You’ll face a $1.50 penalty on top of the already imposed 2% fee, any currency conversion fee, and local bank charges. Here’s the chart from their site:
They provide this unhelpful advice: “Planning to withdraw cash for vacation? It’s more cost-effective to make one larger withdrawal than several smaller ones. This will help you avoid the fixed $1.50 fee each time.” Thanks for that insight.
Wise Might Charge You to Mail It
Have you ever faced a fee just to receive one of their debit cards? Most likely not, but with Wise, you’ll be out of pocket before the