Wise was set up with a mission to make it cheaper and easier to send payments overseas. With Wise you can send money to 80+ countries, hold a balance in 50+ currencies, and spend with a linked Wise card all over the world.
But is Wise money transfer safe to use? Are Wise accounts safe to hold a balance? Join us as we review the ways Wise keeps customers' money safe.
How safe is Wise?
So, is Wise, formerly TransferWise, legit? If you’re considering using Wise for a payment or to hold a balance, it’s natural to wonder if it’s a legit service.
The good news is that Wise is safe to use, whether you want to send or receive a payment, spend internationally, convert currencies or hold a balance.
As a financial service provider, Wise is covered by regulations around the world which are designed to keep customers and their money safe.
In the US, this means that Wise is FinCEN registered, and licensed to operate as a money transmitter in most states.
In states where Wise does not have its own license, it works through a partnership with Community Federal Savings Bank to offer services safely¹.
Global regulations cover a pretty broad range of processes to keep customers accounts secure. Licensed providers need to hold a high level of capital, safeguard customer funds, and run regular external process audits for example.
They also need to thoroughly verify all customers to ensure accounts can’t be used for any illegal activities.
On top of this, as a service that’s been built for online and in-app use, Wise has also invested in high levels of digital security, including manual and automatic fraud prevention processes.
Website security
Wise was built with safety in mind, and you’ll find plenty of security features built into the Wise desktop site and app.
To open an account in the first place you’ll need to complete a verification step and set up a secure password. Once you’re up and running, accounts come with 2 factor authentication and lots of easy ways to keep on top of your transactions.
In the background, Wise runs ongoing vulnerability scans and internal and external audits, designed to spot, stop and stay ahead of any potential fraud or criminal activities.
Wise app safety
Transacting on the Wise app is easy, and you’ll always know your account is safe too.
As well as all of the background security measures that are in place for all Wise digital services, you can also use your Wise app to conveniently get instant transaction notifications, view your balances in just a couple of taps, freeze and unfreeze your card, and get in touch with Wise support.
Is Wise safe to send money?
Yes, Wise is safe to send money.
Wise transfers can be sent to 80+ countries, in 50+ currencies. To set up a Wise payment you’ll need to first register an account and get verified for security.
Once your Wise account is live you can securely arrange a payment online or in the Wise app.
All transfers use 2 factor authentication, and you’ll be able to track your payment as it is processed for peace of mind.
Lots of Wise payments are instant or arrive in just a few seconds — and 90% arrive within 24 hours², so your recipient won’t need to hang around waiting for their money to arrive.
Wise support teams are on hand if you need help — just log into your account and use the chat feature, or you can call or email if you’d rather.
Before you set up a Wise payment you can also check out what previous customers have to say about the service. For example, Wise gets a 4.4 out of 5 Excellent review rating on Trustpilot, from over 187,000 reviews³.
The majority of reviews — 84% at the time of writing — gave Wise a 5 out of 5 star rating, with customers commenting particularly on the speed and ease of service.
Transaction speed claimed depends on individual circ*mstances and may not be available for all transactions
Is Wise safe to keep your money in?
Wise is a safe and trusted provider, which serves millions of personal and business customers around the world.
As well as being regulated and licensed in the US, Wise is also overseen by a range of other global bodies, making it a safe place to keep your money.
Whenever you hold funds in a Wise account your money is safeguarded by being held in top tier banks and assets, separate from Wise’s own working capital⁴.
This keeps customers’ money safe, and also means funds are available whenever they’re needed, so you can spend or withdraw your Wise balance whenever you like.
Safeguarding your money
One of the key ways Wise keeps your money safe is through safeguarding. This means that whenever you hold funds with Wise, Wise deposits the money in leading commercial banks, or holds it as secure liquid assets like government bonds.
In the US this means that your money is kept in trusted banks like Goldman Sachs, Chase and Wells Fargo⁵.
Are Wise Accounts insured?
Wise isn’t a bank. Because the services Wise offers are different to those of a bank, the way Wise protects customer funds is also different. That means Wise accounts aren’t FDIC insured, but funds are safeguarded instead.
While banks lend out customers money, Wise does not. Banks often have FDIC insurance cover, to protect customers and ensure their funds are kept safe. However, due to Wise's license type in the US, it is required to protect customers' funds though safeguarding.
That’s where safeguarding comes in. Wise accounts aren’t FDIC insured, so instead, Wise safeguards customers' funds to make sure they’re always available whenever they’re needed.
Does Wise have buyer protection?
If you’re spending with your Wise card, you might be wondering: does (Transfer)Wise have buyer protection for card purchases?
The Wise card is a debit card, not a credit card. While credit cards usually have a maximum liability cap if someone steals your card and uses it for spending, debit card buyer protections are somewhat different.
With a debit card the most important thing is to report the card lost or stolen — and freeze, block or cancel the card — as soon as possible⁶.
The good news is that you can manage your Wise card from your phone, and block or cancel it instantly if you need to, from the Wise app.
You’ll also be able to set up instant spending notifications to alert you if an unfamiliar payment is processed. If you’re unlucky enough to be the victim of fraud — if your Wise card is stolen for example — you’ll need to freeze the card as soon as you can, and report the issue to Wise.
The Wise support team can then investigate and advise you on what to do next, based on the details of the issue you’ve had⁷.
It’s natural to worry about whether a financial service provider is safe. Doing some checks before you open an account or send a payment is good common sense.
If you’re thinking of using Wise to send, spend, hold or receive money, you’ll be glad to know Wise is a safe provider to choose, with thorough security measures in place to keep customer funds safe.
Sources:
- Wise — how is Wise regulated
- The speed of transaction claim depends on funds availability, approval by Wise's proprietary verification system and systems availability of our partners' banking system, and may not be available for all transactions
- Trustpilot — Wise
- Wise — how Wise keeps your money safe
- Wise US — safeguarding
- Federal Trade Commission — consumer advice, debit cards
- Wise — report fraud
Sources checked on 04.27.2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
