Personal Finance

International Money Transfer - TransferWise

  • Last Updated:
  • Aug 11th, 2019 8:24 am
Member
Nov 27, 2011
299 posts
178 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
1446 upvotes
Richmond
gei wrote:
Oct 5th, 2017 5:50 am
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.
Deal Addict
Dec 20, 2004
4736 posts
397 upvotes
Toronto
Faith24 wrote:
Oct 5th, 2017 9:44 am
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
1446 upvotes
Richmond
gei wrote:
Oct 5th, 2017 3:46 pm
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?
Deal Addict
Dec 20, 2004
4736 posts
397 upvotes
Toronto
Faith24 wrote:
Oct 5th, 2017 4:03 pm
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.
Deal Addict
Feb 29, 2012
2654 posts
1446 upvotes
Richmond
gei wrote:
Oct 5th, 2017 4:32 pm
The TransferWise page, when you select the "Bill Payment" method, mentions that it is only supported by BMO and National Bank.
It would have been nice if Transferwise had mentioned that they'd added a new payment option buried under another little-used payment option. Have you verified that there's no extra % fee when you pay that way?
Deal Addict
Dec 20, 2004
4736 posts
397 upvotes
Toronto
Faith24 wrote:
Oct 5th, 2017 6:16 pm
It would have been nice if Transferwise had mentioned that they'd added a new payment option buried under another little-used payment option. Have you verified that there's no extra % fee when you pay that way?
It may be new - but yes I'm surprised they didn't mention it either. I would not have discovered it myself... I only did because I was prepared to make a wire transfer to fund my borderless account. There is definitely no charge for this.
Deal Addict
Feb 7, 2002
1608 posts
150 upvotes
Scarborough
Has anyone paid by credit card? Their fee is 1.75% for credit cards, if your card has cash back or points, it may be okay as long as your credit card company doesn't treat the payment as a cash advance.
----------------------------------------------------------------
Deal Addict
Feb 29, 2012
2654 posts
1446 upvotes
Richmond
TRK9 wrote:
Oct 5th, 2017 10:55 pm
as long as your credit card company doesn't treat the payment as a cash advance.
... and that's the problem.
Member
Nov 27, 2011
299 posts
178 upvotes
Canadia
TRK9 wrote:
Oct 5th, 2017 10:55 pm
Has anyone paid by credit card? Their fee is 1.75% for credit cards, if your card has cash back or points, it may be okay as long as your credit card company doesn't treat the payment as a cash advance.
Faith24 wrote:
Oct 5th, 2017 11:35 pm
... and that's the problem.
I pretty sure it comes up as payment for services/purchase on credit cards... someone on here confirmed they paid with a Cash Back CC and received the cash back credit for the transaction.
Deal Fanatic
User avatar
Aug 29, 2012
5705 posts
3750 upvotes
Faith24 wrote:
Oct 5th, 2017 9:44 am
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.
That's why I only use TransferWise with my PC bank account in which I leave no money at all. I have nothing to lose, since I never leave any money in my account for a thief to snag. I just pay all my bills when my pay is deposited there and transfer the rest to another bank.
Deal Addict
Feb 29, 2012
2654 posts
1446 upvotes
Richmond
TENSEVEN wrote:
Oct 6th, 2017 8:20 am
I pretty sure it comes up as payment for services/purchase on credit cards... someone on here confirmed they paid with a Cash Back CC and received the cash back credit for the transaction.
Transferwise changed their payment processor recently, so past experience may not apply. It may also depend on the particular credit card, so it's impossible to say without trying it with your own card. Even if it worked one time, it might not work the next time, since it is actually a cash advance - not recognizing it as such is an error that could be corrected at any time.
Deal Addict
Feb 29, 2012
2654 posts
1446 upvotes
Richmond
Transferwise belatedly got around to announcing the new bill-pay method of payment (at BMO/National Bank only) in an email today:

"Question: What do your utility bill and next money transfer have in common?

Answer: You can pay for both of them through your bank's website or app.

We're happy to announce that TransferWise is now a registered payee with BMO and National Bank. So you can pay for transfers the same way you pay your bills online:

1 Add TransferWise as a payee on your bank's website. Here's how.
2 Set up a transfer on TransferWise and choose "bank transfer" as the payment option.
3 On your bank's website or app, send the exact amount of your transfer to TransferWise – just like you're paying a bill.

The money should reach us in 2-3 business days. We'll email you when we get it.

You can even do this for large transfers. No need to go to a branch to make a wire transfer anymore – unless you want to. Maybe you're old school. We respect that.

Thanks,
The TransferWise Team"

Note that their chatty announcement still makes no mention of the most important thing - how much (if anything) does it cost?

Update: I asked Transferwise, and they confirmed that there is no cost for this method of payment.
Last edited by Faith24 on Oct 12th, 2017 5:03 pm, edited 1 time in total.
Deal Addict
Dec 20, 2004
4736 posts
397 upvotes
Toronto
They consider it a bank transfer - and like the wire option, there is no cost whatsoever for this.

Top