Personal Finance

Transferwise - faster than a credit card payment

  • Last Updated:
  • Apr 23rd, 2019 6:29 am
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Dec 13, 2016
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Transferwise - faster than a credit card payment

I'm not whinging and it doesn't bother me.

Now that we have this out of the way, how is it possible in this day and age that a Forex transaction between 2 different countries shows up faster in my bank account than a credit card payment from the same country?

Of course, I am talking about cards issued by different providers than your bank. I am aware that payments from TD bank account to your TD credit card show almost instantaneously.
26 replies
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Apr 19, 2017
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I havent had any problems with them.
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May 31, 2018
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Is this along the same lines as I can receive a package in the mail from Hong Kong faster than one sent from 3 towns over? Some things are just amazingly efficient. Or, other things are just incredibly inefficient.

Although now that you mention it, even the wire transfers from Knightsbridge seemed incredibly fast. So I'm guessing for day to day stuff our banking system is working on the "hey, it works" principle and is probably quite inefficient.
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Jan 9, 2011
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Credit card payments in this country still use the very same daily clearance system that was put in place a half century ago for processing paper cheques. I look forward to the day when all payments are made through real e-transfers and are instantaneous, instead of an e-payment window dressing over the ancient clunky system that still forms the backbone of commerce here.
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Jan 16, 2007
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Payments Canada is working on it, hopefully it goes well (ahahahahahahaha it'll probably still be a mess).
Penalty Box
Dec 16, 2017
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Raincouver
Bill payment system in Canada is manually processed daily as @Kiraly said above.
*cut off time 6PM here and there.

TransferWise OTOH,
- If you pay them w/ a card online, yes it'd be quite fast. Direct debit, not so much.
- Fees: TW is no longer competitive given the new fee implemented on incoming bill pay and fees on withdrawal.
CAN/USA Cross Border Banking

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Jul 15, 2009
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dekvitaly wrote:
Apr 16th, 2019 1:44 pm
Bill payment system in Canada is manually processed daily as @Kiraly said above.
*cut off time 6PM here and there.

TransferWise OTOH,
- If you pay them w/ a card online, yes it'd be quite fast. Direct debit, not so much.
- Fees: TW is no longer competitive given the new fee implemented on incoming bill pay and fees on withdrawal.
The incoming bill pay fee is bad, but what is a more competitive alternative? Haven't been able to find one. Worldremit and XE end up costing even more, even after the new TW fee.
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May 31, 2018
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gbill2004 wrote:
Apr 16th, 2019 6:19 pm
What does whinging mean?
Whining, snivelling, complaining etc.. More of a British term I believe.
Penalty Box
Dec 16, 2017
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Raincouver
bubak wrote:
Apr 16th, 2019 7:12 pm
The incoming bill pay fee is bad, but what is a more competitive alternative? Haven't been able to find one. Worldremit and XE end up costing even more, even after the new TW fee.
I like Knightbridge (recently featured on Drangon's Dens)
CAN/USA Cross Border Banking

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Jan 2, 2009
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Ontario
dekvitaly wrote:
Apr 16th, 2019 1:44 pm
Bill payment system in Canada is manually processed daily as @Kiraly said above.
*cut off time 6PM here and there.

TransferWise OTOH,
- If you pay them w/ a card online, yes it'd be quite fast. Direct debit, not so much.
- Fees: TW is no longer competitive given the new fee implemented on incoming bill pay and fees on withdrawal.
Can you please elaborate on that incoming bill pay and withdrawal fee you mentioned above? I have used TransferWise few times to transfer money abroad.
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Aug 1, 2006
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Toronto
dekvitaly wrote:
Jan 18th, 1970 7:04 pm
I like Knightbridge (recently featured on Drangon's Dens)
Just compared online Knightsbridge to Transferwise to OFX
100,000 CAD buys 74,810 US for Knightsbridge, 74,295 US for Transferwise. and 74389 for OFX .
You think Transferwise is starting to increase their margins now that they have been in business for a while?
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Jul 15, 2009
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Bull Dog wrote:
Apr 18th, 2019 5:20 pm
Just compared online Knightsbridge to Transferwise to OFX
100,000 CAD buys 74,810 US for Knightsbridge, 74,295 US for Transferwise. and 74389 for OFX .
You think Transferwise is starting to increase their margins now that they have been in business for a while?
Where did you find Knightsbridge's rate online? I thought you have to call them for a quote.

(The converter on their homepage is not their actual rate. It's the mid-market rate that nobody will actually give you.)
Member
Aug 1, 2006
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Toronto
bubak wrote:
Apr 18th, 2019 6:52 pm
Where did you find Knightsbridge's rate online? I thought you have to call them for a quote.

(The converter on their homepage is not their actual rate. It's the mid-market rate that nobody will actually give you.)
Oh, that's what I used, no wonder it seemed a lot better. It'd be simpler if they could just publish their rate online.
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Dec 11, 2005
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Just be thankful you are not in the US.

In the US, when you do an online bill payment, what often happens behind the scenes is your bank prints out a cheque and snail-mails it to the recipient company / agency.

Yes EBP payments in Canada are not zero-day, nor are they as fast as Interac e-transfers but they are far ahead of many countries. The payments system in Canada actually works pretty well overall. And Interac actually exists in Canada, so you don't have to rely on sketchy companies like Venmo to do the job that banks are supposed to do.
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