Using TransferWise for International Payments
We’ve always wanted to better way for our international guests to pay for their RetreaTours adventures. Traditionally we’ve relied on PayPal and bank transfers, but they each carry massive fees. PayPal charges you 2.5% to convert currency on top of the 3.9% international service fee they charge us—6.4% is a little out of control, don’t you think? Banks also tend to have pretty poor conversion rates, on top of outgoing and incoming wire fees. So what to do?
We have signed up with TransferWise, a London-based company that specializes in currency conversion transfers at market rates with a very small service fee. With stringent privacy protections and an easy user interface (including a phone app), we are big fans of TransferWise!
TransferWise manages to avoid pricey conversion fees by having accounts in countries all over the globe. For example, if you live in Australia, you can transfer AUD to them (which will go to their Australian account), and they use the real exchange rate to then transfer that amount to us in USD from their American account. Brilliant! (You can watch their one-minute video below for more explanation.)
It may take a few minutes to set up, but if you look at your overall savings, it’s the quickest money you’ll ever save. For example, when paying for a $3500 USD trip with AUD, you would pay $87.50 in PayPal fees (2.5% conversion fee) or just $24.50 with TransferWise’s 0.7% bank transfer fee.
Because we already have a TransferWise account, we have a link for you to sign up with which will make your first £500 (or your equivalent) transfer FREE.
It is always cheaper to transfer from your bank account, but you can use a debit or credit card. As of May 2017, here are the transfer fees:
|Currency to be converted to USD||Fee to transfer money at actual market rate from bank account||Additional fee to use a credit card||Additional fee to use a debit card|
|AUD to USD||0.7%||2%; limited to $3500 AUD per payment||2%; limited to $3500 AUD per payment|
|Pounds to USD||0.5%||0.3%||Limit is £2,000 per transaction on debit card; no extra fee|
|CAD to USD||1%||2%; limited to $3000CAD per transaction||1.15%; limited to $3000CAD per transaction|
|Euros to USD||0.5%||0.4%||0.4%|
If you have another preferred method that saves you money, please let us know. Otherwise, we fully support TransferWise in order to save you currency conversion fees from your bank, PayPal, and other vendors!