Personal Finance

International Money Transfer - TransferWise

  • Last Updated:
  • Jan 15th, 2019 8:33 pm
Deal Addict
Feb 29, 2012
2654 posts
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Richmond
Poutinesauce wrote:
Oct 20th, 2017 8:38 am
But even if you have them as a bill payee, how do you pay specific transfer to specific people with them?
Apparently you initiate the transfer on their site, then do a bill pay when you get to the payment part. Haven't tried this method yet though.
Deal Addict
Dec 20, 2004
4643 posts
299 upvotes
Toronto
You initiate a transfer on their site and they will give you a rate in CAD that is locked in for a certain amount of time. Then you simply send them a bill payment for that exact amount.

Alternatively, you can use bill payment to fund a Transferwise borderless account and then fund your transfer from the borderless account balance.
Member
Nov 27, 2011
242 posts
117 upvotes
Canadia
gei wrote:
Oct 22nd, 2017 9:41 am
You initiate a transfer on their site and they will give you a rate in CAD that is locked in for a certain amount of time. Then you simply send them a bill payment for that exact amount.

Alternatively, you can use bill payment to fund a Transferwise borderless account and then fund your transfer from the borderless account balance.
It's exactly this. I've used the Tangerine Bill Payment both to fund transfers and fund my borderless account
Deal Addict
Feb 29, 2012
2654 posts
1435 upvotes
Richmond
TENSEVEN wrote:
Oct 22nd, 2017 6:42 pm
It's exactly this. I've used the Tangerine Bill Payment both to fund transfers and fund my borderless account
Tangerine? There hasn't been any mention by Transferwise of supporting payment via Tangerine bill payment. They said BMO and National Bank only. Have they yet again introduced a new option without mentioning it?
Member
Nov 27, 2011
242 posts
117 upvotes
Canadia
Faith24 wrote:
Oct 23rd, 2017 10:32 am
Tangerine? There hasn't been any mention by Transferwise of supporting payment via Tangerine bill payment. They said BMO and National Bank only. Have they yet again introduced a new option without mentioning it?
Yes, TRANSFERWISE only mentions BMO on its website and I believe that might have been the case before.

But 2 weeks ago I noticed TRANSFERWISE listed as a bill payment payee when I searched with Tangerine. So I did a test payment of $1 and it showed up in my borderless account the next day.

So then I subsequently used it to fund a USD transfer and it went through with no issues as well.

I'm guessing they just haven't updated the website yet to mention supporting payments through Tangerine bill payment
Deal Addict
Sep 19, 2009
1163 posts
256 upvotes
Toronto
TENSEVEN wrote:
Oct 23rd, 2017 10:58 am
Yes, TRANSFERWISE only mentions BMO on its website and I believe that might have been the case before.

But 2 weeks ago I noticed TRANSFERWISE listed as a bill payment payee when I searched with Tangerine. So I did a test payment of $1 and it showed up in my borderless account the next day.

So then I subsequently used it to fund a USD transfer and it went through with no issues as well.

I'm guessing they just haven't updated the website yet to mention supporting payments through Tangerine bill payment
Can you please explain what are the steps for a transfer when using bill payment? I am trying to do a transfer in a EU country and I can see "Exchange rate (Not guaranteed)" when preparing the transfer.

Do you need to fund the Transferwise account in advance or after placing the order? If it is after, considering that the bill payment in not instantaneous, is the rate kept for the duration of the bill payment transfer?

Thank you.
Member
Jan 28, 2010
212 posts
28 upvotes
Montreal
andrew4321 wrote:
Mar 23rd, 2018 6:55 pm
Can you please explain what are the steps for a transfer when using bill payment? I am trying to do a transfer in a EU country and I can see "Exchange rate (Not guaranteed)" when preparing the transfer.

Do you need to fund the Transferwise account in advance or after placing the order? If it is after, considering that the bill payment in not instantaneous, is the rate kept for the duration of the bill payment transfer?

Thank you.
No, rates that show "Not guaranteed" are not kept during the processing time. I did a couple of transfers and it takes 2 business days to complete the processing (online bill payment) and the rates keep changing during the period. However, they have a "rate limit" which stops/interrupts the processing if the rate goes below the limit. by default, the limit is 3% but you can change it.

As for the process, you can initiate the transfer and then you can pay them through online bill payment (I did it with BMO). it takes 2 business days for them to get your payment and then they complete the transfer the same business day. it might be instant if you have sufficient funds in their borderless account and you pay through it but I never tried.
Deal Addict
Sep 19, 2009
1163 posts
256 upvotes
Toronto
CanadaDealSeeker wrote:
Mar 24th, 2018 3:20 am
No, rates that show "Not guaranteed" are not kept during the processing time. I did a couple of transfers and it takes 2 business days to complete the processing (online bill payment) and the rates keep changing during the period. However, they have a "rate limit" which stops/interrupts the processing if the rate goes below the limit. by default, the limit is 3% but you can change it.

As for the process, you can initiate the transfer and then you can pay them through online bill payment (I did it with BMO). it takes 2 business days for them to get your payment and then they complete the transfer the same business day. it might be instant if you have sufficient funds in their borderless account and you pay through it but I never tried.
Thank you for your answer CanadaDealSeeker. I watched this video https://transferwise.com/help/article/1 ... a-transfer and I am still confused. The sequence of steps, as I understand it, is like this:

  1. I start with no funds with transferwise
  2. enter the transfer on transferwise.com. Let's assume it is 1000CAD and "Exchange rate (Not guaranteed)"
  3. I can put a "rate limit", let's say 1% - is this limit from mid-market rate when the order is placed?
  4. transferwise waits for me to do the bill payment - you said it takes 2 business days for my money to reach transferwise
  5. transferwise does the exchange and deposits the exchanged amount into the recipient account.

My question is how would I know how much to do the bill payment for? Since "Exchange rate (Not guaranteed)" the rate will be certainty different than what I see on the screen when I place the order. I think they say somewhere on their website something about 1% markup for CAD-USD exchange, for smaller currencies I am certain that is more than that 1%. They have If I just transfer 1000CAD as I placed the order for, most-likely the transaction will never be completed as the transaction was estimated at mid-market rate. And BTW, how long does it take to get money sent as bill payment back if they cannot complete the order, any fees?
Deal Addict
Jul 15, 2009
1334 posts
447 upvotes
Right now, it says that for 1000 CAD you will get 621.75 EUR. The CAD amount is fixed once you go ahead with the transfer but the foreign currency amount can change with rate fluctuations. So you start the transfer and it gives you instructions about the bill payment for $1000. After a few days, you get about 621.75 EUR, but it could be a little less or a little more depending on how the rate fluctuates over the next few days.

If you need an exact amount of foreign currency, I think you can do that with their borderless account, but that's new and I have never used it.
Deal Addict
Sep 19, 2009
1163 posts
256 upvotes
Toronto
bubak wrote:
Mar 24th, 2018 1:17 pm
Right now, it says that for 1000 CAD you will get 621.75 EUR. The CAD amount is fixed once you go ahead with the transfer but the foreign currency amount can change with rate fluctuations. So you start the transfer and it gives you instructions about the bill payment for $1000. After a few days, you get about 621.75 EUR, but it could be a little less or a little more depending on how the rate fluctuates over the next few days.

If you need an exact amount of foreign currency, I think you can do that with their borderless account, but that's new and I have never used it.
Thank you for your input bubak but the question was for a currency with "Exchange rate (Not guaranteed)". Do you have any real experience with a case like this?
Member
Jan 28, 2010
212 posts
28 upvotes
Montreal
andrew4321 wrote:
Mar 24th, 2018 9:16 am
Thank you for your answer CanadaDealSeeker. I watched this video https://transferwise.com/help/article/1 ... a-transfer and I am still confused. The sequence of steps, as I understand it, is like this:

  1. I start with no funds with transferwise
  2. enter the transfer on transferwise.com. Let's assume it is 1000CAD and "Exchange rate (Not guaranteed)"
  3. I can put a "rate limit", let's say 1% - is this limit from mid-market rate when the order is placed?
  4. transferwise waits for me to do the bill payment - you said it takes 2 business days for my money to reach transferwise
  5. transferwise does the exchange and deposits the exchanged amount into the recipient account.

My question is how would I know how much to do the bill payment for? Since "Exchange rate (Not guaranteed)" the rate will be certainty different than what I see on the screen when I place the order. I think they say somewhere on their website something about 1% markup for CAD-USD exchange, for smaller currencies I am certain that is more than that 1%. They have If I just transfer 1000CAD as I placed the order for, most-likely the transaction will never be completed as the transaction was estimated at mid-market rate. And BTW, how long does it take to get money sent as bill payment back if they cannot complete the order, any fees?
your source amount remains as is, and that is what you pay. in your example, you're sending 1000CAD to whatever currency. you would pay 1000CAD fixed.
once they receive your 1000CAD, they exchange it at your step 5 based on the rate at that point of time (and stops if rate goes below your set limit) and send that money to recipient.

I don't know what markup you're referring here. As far as i know, they dont charge any markup and their rates are mid-market. They do charge fee, which is shown upfront at the time you initiate the process. Fee is dependent upon the amount of transfer plus the currencies involved.

For 1% limit, do read their FAQ on rate limit as setting the lower rate limit could cause in delays as rates fluctuate often.
Deal Addict
Sep 19, 2009
1163 posts
256 upvotes
Toronto
CanadaDealSeeker wrote:
Mar 24th, 2018 6:53 pm
your source amount remains as is, and that is what you pay. in your example, you're sending 1000CAD to whatever currency. you would pay 1000CAD fixed.
once they receive your 1000CAD, they exchange it at your step 5 based on the rate at that point of time (and stops if rate goes below your set limit) and send that money to recipient.

I don't know what markup you're referring here. As far as i know, they dont charge any markup and their rates are mid-market. They do charge fee, which is shown upfront at the time you initiate the process. Fee is dependent upon the amount of transfer plus the currencies involved.

For 1% limit, do read their FAQ on rate limit as setting the lower rate limit could cause in delays as rates fluctuate often.
So, for my example I can see "11.86 CAD Our fee" and an "Exchange rate (Not guaranteed)". The rate is indeed mid-market but according to the T&C, it can be 3% higher, although I can set a variance limit between 0.5% and 3%. That means that the worst case scenario is a 4.2% (11.86 / 1000 = 1.2% plus 3%) fee while the best case would be 1.7% fee. The issue is that, as you mention it, if I set a lower than 3% limit, the order might not execute.

I cannot imagine any reason for them to actually charge me a fee lower than 4.2% once they have my money and I already acknowledged upfront that I accepted they T&C which implies the 4.2% fee.

My question was after they have my $1000, if they only offer me the 4.2% option, how do I get my money back?
Deal Addict
Jul 15, 2009
1334 posts
447 upvotes
andrew4321 wrote:
Mar 24th, 2018 7:26 pm
So, for my example I can see "11.86 CAD Our fee" and an "Exchange rate (Not guaranteed)". The rate is indeed mid-market but according to the T&C, it can be 3% higher, although I can set a variance limit between 0.5% and 3%. That means that the worst case scenario is a 4.2% (11.86 / 1000 = 1.2% plus 3%) fee while the best case would be 1.7% fee. The issue is that, as you mention it, if I set a lower than 3% limit, the order might not execute.

I cannot imagine any reason for them to actually charge me a fee lower than 4.2% once they have my money and I already acknowledged upfront that I accepted they T&C which implies the 4.2% fee.

My question was after they have my $1000, if they only offer me the 4.2% option, how do I get my money back?
The 3% is not a fee. The fee is only the $11.86 that they quoted you. The 3% is the maximum allowed rate fluctuation. They charge you the actual rate at the time they get your money and do the conversion. If the rate changes in your favour, they will even give you more than they originally said they would. If you think that if it the rate went up by 3% you would want your money back, then set a lower limit at the amount that the rate can go up before you want to cancel the transaction.

Yes, I have done this converting to currencies without a guaranteed rate.

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