Wise Multi-Currency Account Features Flashcards

How does a Wise multi-currency account differ from a traditional bank's multi-currency account?

Answer: Wise uses the mid-market rate with transparent fees, while banks often use marked-up rates with hidden fees

The key difference is that Wise charges a transparent fee at the mid-market rate, whereas banks typically embed profit in a less favorable exchange rate.

What is a Wise 'borderless' account now officially called?

Answer: Wise Multi-Currency Account

Wise rebranded its 'borderless account' to the 'Wise multi-currency account' to better reflect its core features.

When using Wise to send money abroad, what determines whether the recipient receives funds via local payment rails or SWIFT?

Answer: Whether Wise has local banking infrastructure in the recipient's country

Wise uses local payment networks where it has infrastructure, and falls back to SWIFT only when local rails are unavailable in the destination country.

Which of the following correctly describes Wise's fee structure for sending money internationally?

Answer: A percentage-based fee plus a small fixed fee, shown before confirming

Wise charges a combination of a percentage of the transfer amount and a small fixed fee, always displayed transparently before the user confirms.

A US freelancer working for a UK client wants to receive GBP payments. Which Wise feature enables this?

Answer: UK local bank details (sort code and account number) provided by Wise

Wise provides UK sort code and account number details to eligible users, allowing them to receive GBP as if they had a local UK bank account.

What is the Wise card spending limit behavior when you have balances in multiple currencies?

Answer: Wise automatically uses the currency matching the merchant's country, then falls back to other balances

Wise prioritizes the local currency of the merchant; if that balance is insufficient, it draws from other held currencies in a predefined order.

What safeguard does Wise use to protect customer balances held in the multi-currency account?

Answer: Safeguarding regulations requiring customer funds to be held separately from Wise's own funds

Wise follows safeguarding rules that require it to keep customer funds separate from its operational money, held in top-tier financial institutions.