Getting the clients to pay for your services is one of the few things that’s annoying about the digital nomad life. With modern banking, the problem is not necessarily in the long waiting period until the payment is processed, but rather in the huge hidden fees that seem practically unavoidable.
Luckily, there are a couple of options that are tailor made for nomadic needs, and today, we’ll be looking further into one such service. It’s called TransferWise, and it’s looking to revolutionize the known banking order. Let’s take a closer look.
What is the major difference?
If we have to pick one thing that makes TransferWise stand out compared to the rest of the competition, it’s their excellent foreign exchange rate policy. Most banks take huge fees for international money transfer, and then additional ones for transferring the money to a different currency. The long story short, digital nomads end up feeling ripped off.
TransferWise uses a different tactic. Instead of using one single transfer, they actually use two. First of all, they send the money in your original currency to their accounts. After that’s complete, they then direct the money your way, but in the currency of your choice, according to your current needs. In this way, the international transfer fees are bypassed, and the clients are the ones who benefit the most.
It’s not a regular bank account
One additional thing you need to know about TransferWise is that it does not represent an actual account. It comes down to two things. No matter how much you use it, they will not be able to give you a loan or even an overdraft. However, what you can do is receive payment from all over the world, with no issues what so ever.
Additionally, if you choose to stick to TransferWise, you’ll be able to use their Mastercard in order to make simple everyday payments whenever you feel like it. The card will automatically select the best currency when you use it for payment, so that you won’t ever have to worry about the costs of conversion again.
There are no restrictions when it comes to the amount of money you can store on your bank account, or the amounts that you receive or send out. This makes it an ideal option for digital nomads who receive paychecks from an employer located in another country.
What are the costs?
With no international transfer fees and the best exchange rates in the business, it appears that TransferWise is putting themselves in the best position to become a future powerhouse. Another thing that makes them a viable player is their absolute transparency policy. All the fees can be found with no trouble, and that cannot be said for most banks.
First of all, it’s free to open the account. Additionally, you get their Mastercard also completely free of charge. But wait, the fun doesn’t stop there. What makes them really awesome is the fact that they support a huge number of currencies from across the globe.
Even better, you can hold more than 40 currencies on your account, and you’ve guessed it, you won’t have to pay a single dime for that. Now, that’s a crazy info that’s guaranteed to satisfy even the most renowned travelers in the world.
Conversion rate fees are also very impressive, ranging from 0.35% to 2% max, which is a lot better than some of the more well-known companies in the business. We tested out this feature more than a handful of times, and got the same results as we previously Googled and hoped for, so that’s a definite plus. All the fees are shown up front, so you could get a better idea of the costs you’ll be looking at.
Finally, the customer service is pretty decent, yet not entirely top notch thus far. Still, as the company grows in power and popularity, we can only assume that the situation will improve. As things stand right now, this is definitely one of the best banking options for digital nomads.