Wise Understanding Fees & Rates Flashcards

What type of exchange rate does Wise use for currency conversions?

Answer: The mid-market rate

Wise uses the mid-market exchange rate, which is the midpoint between the buy and sell prices on global currency markets.

How does Wise typically structure its transfer fee?

Answer: A percentage-based fee plus a small fixed fee

Wise charges a combination of a small fixed fee and a variable percentage fee based on the amount being transferred.

Which of the following is TRUE about receiving money into a Wise account (USD)?

Answer: Domestic ACH transfers are received free

Wise provides free US account details for ACH transfers, so domestic bank transfers to your Wise USD balance are typically free to receive.

What happens to Wise's percentage fee as the transfer amount increases significantly?

Answer: The percentage fee stays exactly the same regardless of amount

Wise's percentage fee remains constant — it does not offer volume discounts for larger transfers, though the fixed component becomes proportionally smaller.

A customer wants to send money from the US to the UK. Where can they see the exact fee BEFORE confirming the transfer?

Answer: On the Wise fee calculator on the website or app before initiating

Wise displays the full fee breakdown upfront in its fee calculator, so users see exactly what the recipient will receive before confirming.

Which payment method in the US typically results in the LOWEST Wise transfer fee?

Answer: Bank transfer (ACH)

Paying via ACH bank transfer usually carries the lowest fee because processing costs are minimal compared to card payments.

If Wise lists a fee of '0.43% + $0.79' for a USD to EUR transfer, what is the total fee on a $500 transfer?

Answer: $2.94

0.43% of $500 = $2.15, plus the fixed $0.79 = $2.94 total fee.