Personal Finance

International Money Transfer - TransferWise

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Deal Addict
Dec 3, 2009
1211 posts
767 upvotes
Vancouver

International Money Transfer - TransferWise

Hello All,

I'm trying to transfer some money to S. Korea, but am finding it very difficult... I tried both my banks (TD and BMO), and neither was able to send a KRW wire transfer. Tried PayPal and XE as well, but KRW is not a supported currency apparently...

So after some googling, found a company called TransferWise (https://transferwise.com/ca). Has anyone had any experience with this service before? Wondering whether it is legitimate...

Otherwise, anyone aware of some other options I can use to transfer CAD to KRW?

Thanks
474 replies
Jr. Member
Aug 29, 2012
121 posts
121 upvotes
Toronto
Transferwise is a legitimate business and I have used them several times before. The good thing with them is they show their fee upfront before you commit to the transaction. You should ask them if they use a local domestic account to deliver the funds to your destination account in KRW as that way you will be sure that there are not any inbound wire fees that typically occur from swift transfers inwards and instead they just do a local EFT transfer.

I did take a quick look at CurrencyFair and KRW does not appear to be a currency they support so transferwise.

There is another thread here that may have some useful resources for you : best-place-exchange-korean-won-1617475/
Deal Addict
Feb 29, 2012
2654 posts
1461 upvotes
Richmond
Yes, Transferwise is legit. They have been discussed in the news and in a few previous threads in this forum. I've used them several times.

Pro:
- They use the proper mid-rate for currency exchange calculation and don't bury their fee in a poor exchange rate.
- Their total cost including fee is less than most other services.
- It goes straight into the receiver's bank account by a local direct deposit, usually avoiding any fees at their end.

Con:
- The only cheap way to send money in Canada is to give them direct access to your bank account, which is very insecure, especially since they go through third party processors unknown to you. They have alternatives, but they all cost more, losing the price advantage.
- One of the ways they stay cheap is that they don't maintain any float in the different currencies, so it takes them a couple of days to match up balancing exchanges between countries. It can take from 3 to 5 business days to complete a transaction.
Deal Addict
Dec 3, 2009
1211 posts
767 upvotes
Vancouver
Thanks for the advice guys.

Good to hear that they're reputable. And the heads-up regarding local vs wire deposits on their end.
Sr. Member
Mar 7, 2011
604 posts
558 upvotes
Vancouver
I've used it a couple of times to send to Korea and it worked just fine.
Deal Addict
Dec 3, 2009
1211 posts
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Vancouver
sky417 wrote: I've used it a couple of times to send to Korea and it worked just fine.
Can you confirm whether the receiver ended having to pay any fees?
Deal Addict
Feb 17, 2017
1318 posts
1144 upvotes
I transfer money from my UK account to my Canadian account all the time with them. Normally get the money the same day (arrives late evening) as sending. They usually send the payment out via a local bank so no receiver fees.
Deal Fanatic
User avatar
Aug 29, 2012
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Great service, I used to send Philippine pesos many times and it always worked perfectly.

I know you have to give them access to your bank account, but if that concerns you, you can just use a secondary bank account for that, something that you only use for such purposes (like Tangerine or PCF).
Sr. Member
Mar 7, 2011
604 posts
558 upvotes
Vancouver
pentiumvi wrote: Can you confirm whether the receiver ended having to pay any fees?
I actually sent it to my own account, and I didn't see any extra fee charged on the receiving side.
Sr. Member
User avatar
Dec 28, 2010
650 posts
298 upvotes
CanadianSpruce wrote: I transfer money from my UK account to my Canadian account all the time with them. Normally get the money the same day (arrives late evening) as sending. They usually send the payment out via a local bank so no receiver fees.
ditto.

The person transferring the money pays the fee. I had some issues in the beginning where my Canadian bank didn't allow access but the other way around: no problem. Very good service!
.
Sr. Member
User avatar
Dec 28, 2010
650 posts
298 upvotes
Faith24 wrote: - One of the ways they stay cheap is that they don't maintain any float in the different currencies, so it takes them a couple of days to match up balancing exchanges between countries. It can take from 3 to 5 business days to complete a transaction.
I use a secondary PC account on my Transferwise, one only used for international transfers.
.
Newbie
User avatar
May 12, 2017
1 posts
Have you used their Direct Debit method to transfer funds from a CAD based account before?

Despite the risks, I attempted it with both TD and Tangerine and was unsuccessful. It seems to fail during the MFA phase. I contacted Transferwise directly about it and they indicated that they have been having some issues with access to Canadian bank accounts. I'm unsure why they can't have it setup as an EFT link to avoid having the user input their login credentials on a 3rd party site.
Deal Fanatic
User avatar
Dec 20, 2004
5600 posts
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Toronto
Faith24 wrote: Yes, Transferwise is legit. They have been discussed in the news and in a few previous threads in this forum. I've used them several times.

Con:
The only cheap way to send money in Canada is to give them direct access to your bank account, which is very insecure, especially since they go through third party processors unknown to you. They have alternatives, but they all cost more, losing the price advantage.
If you choose the "Bank Transfer" method, you can actually do a bill payment to send them the money, in addition to a normal wire transfer (which would incur wire fees). I just did a transfer using Transferwise and was able to fund the transaction by making a bill payment to Transferwise from my BMO account, which incurs no fees at all.

This is great since it's fast, no fees, and I can make the bill payment online without having to go in to my bank or call them. The catch is that they only support this payment method from BMO and National Bank.
Member
Nov 27, 2011
363 posts
264 upvotes
Canadia
+1 for TranferWise... they are legitimate

I use them a lot and find it the fees low and transparent... and the services are fast and convenient with lots of payment options.
Deal Addict
Feb 29, 2012
2654 posts
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Richmond
gei wrote: If you choose the "Bank Transfer" method, you can actually do a bill payment to send them the money, in addition to a normal wire transfer (which would incur wire fees). I just did a transfer using Transferwise and was able to fund the transaction by making a bill payment to Transferwise from my BMO account, which incurs no fees at all.

This is great since it's fast, no fees, and I can make the bill payment online without having to go in to my bank or call them. The catch is that they only support this payment method from BMO and National Bank.
Transferwise offers direct debit as a payment method, with BMO and other Canadian banks. As it happens Transferwise uses BMO as their Canadian bank, so after you authorize their payment service "Transcendremit", it will show up in your list of Payees along with other bill payments, and you can pay them like any bill. Payments are also processed quicker via BMO than with other banks. You still have to grant them unlimited irrevocable authorization to debit your account.

With other Canadian banks you still have to give them your account login information (card number and password) each time, in addition to pre-authorizing them.

You can avoid this highly risky and insecure payment method by using debit card payment now, but it costs an additional 1.15% to pay by debit card in Canada.
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Dec 20, 2004
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Faith24 wrote: You still have to grant them unlimited irrevocable authorization to debit your account.

With other Canadian banks you still have to give them your account login information (card number and password) each time, in addition to pre-authorizing them.

You can avoid this highly risky and insecure payment method by using debit card payment now, but it costs an additional 1.15% to pay by debit card in Canada.
No, you don't. Not with BMO. As I previously posted, I simply added "TransferWise" as a payee along with my account number and I was able to send them a regular bill payment. So they most certainly do not have unlimited irrevocable access to my account - in fact they have no access to my account whatsoever. This was NOT the "direct debit" method you are talking about - this was the "bank transfer" method.

The catch is this method only works with BMO and National Bank as per their website. With all other banks you have to use the method you described.
Deal Addict
Feb 29, 2012
2654 posts
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Richmond
gei wrote: No, you don't. Not with BMO. As I previously posted, I simply added "TransferWise" as a payee along with my account number and I was able to send them a regular bill payment. So they most certainly do not have unlimited irrevocable access to my account - in fact they have no access to my account whatsoever. This was NOT the "direct debit" method you are talking about - this was the "bank transfer" method.

The catch is this method only works with BMO and National Bank as per their website. With all other banks you have to use the method you described.
Transferwise has been making changes to their payment methods in the last several weeks. Previously when I used BMO, I had to give them my BMO bank card number and password. After the most recent changes, I again had to give them my BMO bank card number and password. Now for the first time Transcendremit appears as a possible Payee in the dropdown list of Payees for my BMO account. I'm not sure how that is used with Transferwise, since I obviously can't just initiate a payment at the BMO end, I have to go through booking a transfer on the Transferwise site. I take it from what you are saying that you can select "Bank transfer", which previously only referred to high-fee wire transfers, and there is now a free option to pay from your BMO account as a bill payment? * sigh * If only Transferwise bothered to explain these things!

You are dangerously mistaken about authorizations. Once you have authorized a bill payee, it is an unlimited irrevocable authorization to take money from your account. Most banks allow you to remove a payee from the visible list, but the authorization remains in place. If a transfer comes through they will process it, and it will be up to you to sort out any disagreement with the authorized payee. Do you even know who "transcendremit" is? Do you have a phone number?
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Dec 20, 2004
5600 posts
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Toronto
Faith24 wrote: Transferwise has been making changes to their payment methods in the last several weeks. Previously when I used BMO, I had to give them my BMO bank card number and password. After the most recent changes, I again had to give them my BMO bank card number and password. Now for the first time Transcendremit appears as a possible Payee in the dropdown list of Payees for my BMO account. I'm not sure how that is used with Transferwise, since I obviously can't just initiate a payment at the BMO end, I have to go through booking a transfer on the Transferwise site. I take it from what you are saying that you can select "Bank transfer", which previously only referred to high-fee wire transfers, and there is now a free option to pay from your BMO account as a bill payment? * sigh * If only Transferwise bothered to explain these things!
That's correct - I was able to select the "Bank Transfer" method. I was actually assuming the only option I would be given would be to do a wire transfer (which I was prepared to do), but as it turns out I was also able to select "Bill Payment" as an option. Then I was able to add "Transferwise" as a payee via BMO online banking (not "Transcendremit" as you mentioned). The TransferWise page, when you select the "Bill Payment" method, mentions that it is only supported by BMO and National Bank.

Then it tells you to make a bill payment for the exact amount. You can also fund your Borderless Account using this method, and then make transfers using your Borderless Account balance as a source.
You are dangerously mistaken about authorizations. Once you have authorized a bill payee, it is an unlimited irrevocable authorization to take money from your account. Most banks allow you to remove a payee from the visible list, but the authorization remains in place. If a transfer comes through they will process it, and it will be up to you to sort out any disagreement with the authorized payee. Do you even know who "transcendremit" is? Do you have a phone number?
As mentioned above, the payee was "TransferWise" and not "transcendremit". Also I am quite certain you are mistaken about bill payees - as far as I know, the only way for money to be transferred to a bill payee is when *I* do a bill payment from my online banking and specify the amount. Bill payee recipients have no way of simply removing money from your account whenever they want (if they could, then Rogers, credit cards, etc, would just do this automatically whenever a bill was due).

I never provided any access to TransferWise to my bank account (ie I never provided them my bank card number or password) - I was the one who added the bill payee myself.

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