Wise Multi-Currency Account Features Flashcards

A Wise account holder wants to convert USD to JPY. Which factor most directly affects the final JPY amount received?

Answer: The mid-market USD/JPY rate at the time of conversion plus Wise's fee

The final amount depends on the live mid-market rate between USD and JPY at conversion time, minus Wise's transparent conversion fee.

What does Wise's 'hold balance' feature enable that a standard international wire transfer does not?

Answer: Storing foreign currency and spending it later without repeated conversions

Holding a balance lets you convert once when the rate is favorable and spend or transfer that currency multiple times without additional conversion costs.

Which of these correctly explains why Wise transfers are often faster than traditional bank international wires?

Answer: Wise uses a network of local bank accounts to make domestic transfers at both ends, avoiding the SWIFT network

Wise holds local accounts in many countries; when you send money internationally, Wise debits its local account in the destination country, making it a domestic transfer rather than a slow cross-border one.

Under which circumstance would Wise decline to open or maintain a multi-currency account for a US customer?

Answer: The customer intends to transact with sanctioned countries or fails identity verification

Wise declines accounts or closes them when customers are involved with sanctioned entities or fail to pass KYC/AML identity verification requirements.

What is the correct way to describe Wise's approach to exchange rate markups?

Answer: Wise does not mark up the exchange rate; it charges a separate, visible fee instead

Wise's core promise is to use the mid-market rate with zero markup and charge a separate, clearly disclosed fee for the service.

How does the Wise multi-currency account handle a situation where your primary currency balance is zero but you make a card payment?

Answer: Wise converts from another held currency balance to cover the payment, applying a conversion fee

If your primary currency balance is insufficient, Wise converts from another currency you hold at the mid-market rate plus a small fee to complete the transaction.

Which Wise account feature is most useful for a US-based Amazon seller who receives EUR payments from European sales?

Answer: EUR local bank details to receive marketplace payouts directly, then convert to USD when favorable

Wise provides EUR bank details so sellers can receive EUR payouts from marketplaces directly and choose when to convert to USD at the mid-market rate.