Wise Test Wise Understanding Fees & Rates 3 — Questions and Answers
Question 1: What is a key reason Wise's fees are often lower than traditional banks for international transfers?
- Wise is government-subsidized to promote financial inclusion
- Wise uses a peer-to-peer matching model and does not always move money across borders (Correct answer)
- Wise operates without any regulation, reducing compliance costs
- Wise only makes money from currency speculation
Correct answer: Wise uses a peer-to-peer matching model and does not always move money across borders
Wise routes money locally where possible — matching opposite-direction transfers — so funds rarely need to cross borders, drastically cutting costs.
Question 2: When converting currencies in the Wise multi-currency account, when is the rate typically LEAST favorable?
- On weekdays during peak trading hours
- On weekends when currency markets are closed (Correct answer)
- During US business hours on Mondays
- Rates are identical every day of the week
Correct answer: On weekends when currency markets are closed
Because global currency markets are closed on weekends, Wise adds a small weekend markup to protect against rate movements that occur when markets reopen.
Question 3: Which Wise product charges a monthly or annual fee to access enhanced features?
- Wise Personal (standard)
- Wise Business (Correct answer)
- Wise Debit Card (basic)
- Wise Platform for banks
Correct answer: Wise Business
Wise Business accounts require a one-time setup fee and may have additional charges, unlike the standard personal account which is free to open.
Question 4: If you use your Wise debit card to make a purchase in a foreign currency while traveling abroad, what rate applies?
- Visa or Mastercard's daily rate with a 3% surcharge
- The mid-market rate with a small conversion fee after the free monthly limit (Correct answer)
- Your home bank's exchange rate
- A fixed rate set at the start of your trip
Correct answer: The mid-market rate with a small conversion fee after the free monthly limit
Wise cardholders get the mid-market rate for currency conversion, with a small fee applying once the monthly fee-free conversion limit is exceeded.
Question 5: What does Wise show customers to prove they are using the mid-market rate?
- A certificate from the Federal Reserve confirming the rate
- A live comparison widget showing the rate alongside Google/Reuters rates (Correct answer)
- An annual audit report from a Big Four accounting firm
- A screenshot from Bloomberg terminal
Correct answer: A live comparison widget showing the rate alongside Google/Reuters rates
Wise's website and app display the mid-market rate alongside publicly verifiable sources like Google, helping customers confirm they are receiving a fair rate.
Question 6: How does Wise disclose fees differently from most traditional banks?
- Wise embeds fees in the exchange rate without itemizing them
- Wise shows fees as a separate line item so the rate and fee are clearly distinct (Correct answer)
- Wise charges no fees and earns only from float on held balances
- Wise fees are disclosed only in the Terms and Conditions PDF
Correct answer: Wise shows fees as a separate line item so the rate and fee are clearly distinct
Unlike banks that hide profit in a marked-up exchange rate, Wise separates the fee from the exchange rate so customers see both clearly.
Question 7: Which scenario would result in the HIGHEST effective cost when using Wise?
- Sending a large amount via ACH using the standard transfer speed
- Sending a small amount via credit card with instant transfer selected (Correct answer)
- Sending a mid-size amount via debit card on a weekday
- Receiving USD via ACH into your Wise account
Correct answer: Sending a small amount via credit card with instant transfer selected
Small transfers magnify the fixed fee component, credit cards add processing costs, and instant transfer options carry a premium — combining all three maximizes cost.
Wise Test Wise Understanding Fees & Rates 3
What is a key reason Wise's fees are often lower than traditional banks for international transfers?