Is Wise Safe to Send Money Internationally?

Wise, formerly known as TransferWise, has become a widely recognized platform for sending money across international borders. For many users, the primary concern when utilizing such services revolves around the safety and security of their funds and personal information. This article explores the various measures Wise employs to ensure the trustworthiness of its operations, addressing these fundamental user concerns.

Regulatory Oversight and Licensing

Wise’s adherence to financial regulations and its licensing across numerous jurisdictions form a foundational layer of safety for its users. In the United States, Wise US Inc. is registered with the Financial Crimes Enforcement Network (FinCEN) and holds licenses as a money transmitter in 48 states, with supervision from regulatory authorities in each of those states. In other U.S. states or territories, money transmission services are facilitated through a partner financial institution, Community Federal Savings Bank, supervised by the Office of the Comptroller of the Currency.

Operating as a licensed money transmitter means Wise must comply with various financial regulations, including capital reserve requirements and anti-money laundering (AML) laws and procedures. These requirements ensure that the company maintains sufficient financial stability and actively works to prevent illicit financial activities. This oversight ensures accountability and safeguards user funds by mandating specific standards. Wise is also supervised by the Consumer Financial Protection Bureau (CFPB) in the US.

Security Measures for Funds and Data

Wise implements practical, technical, and operational measures to safeguard user funds and personal data during transactions and storage. A core principle is the segregation of customer funds from the company’s own operating capital. This means user money is held in separate bank accounts with reputable financial institutions, ensuring that these funds are protected even if Wise were to encounter financial difficulties. These safeguarded funds are held in a mix of cash in leading commercial banks and investments in secure, liquid assets, primarily government bonds.

Regarding data security, Wise employs industry-standard encryption protocols for sensitive personal and financial data during transmission over the internet. This encryption makes the data unreadable to unauthorized parties. Wise also utilizes features designed to prevent unauthorized access to user accounts, including mandatory two-factor authentication (2FA), which can involve in-app notifications, codes from authenticator apps, or text messages. The company also maintains strong password policies and continuously monitors for suspicious login activity.

Wise has dedicated fraud prevention teams and employs advanced automated systems that actively monitor transactions for unusual patterns or suspicious behavior. These systems perform millions of checks daily to identify and prevent fraudulent activities. Wise also adheres to global data privacy regulations, ensuring that user data is handled responsibly and securely throughout its lifecycle, from collection to retention.

User Protection and Dispute Resolution

Should users encounter issues with their transactions or experience problems, Wise offers various avenues for support and recourse. Customers can contact Wise for assistance through multiple channels, including phone support, email support, and an online contact form accessible via the Wise Help Centre.

For more formal concerns, Wise has an internal complaint process. After submitting a complaint, Wise’s Complaints and Disputes Team aims to address the issue. If the issue is not resolved to the user’s satisfaction through Wise’s internal processes, users may have the option to escalate the matter to an independent external body. In the United States, this could involve seeking information from bodies such as the Consumer Financial Protection Bureau (CFPB).

Regarding failed transfers or errors, Wise has policies to address these situations. While completed international money transfers are irreversible, if a transfer is canceled before it is completed, customers may be eligible for a refund, minus any incurred fees. If incorrect recipient details lead to a bank rejecting a transfer, Wise will get in touch with the sender to update the details or initiate a refund. Wise emphasizes that it cannot become involved in disputes between senders and recipients once a transfer is completed, recommending users only send money to trusted parties.