TransferWise Business Account, Canada [2022 Review]: International Multi-Currency Banking & Money Transfers

Do you own a Canadian business that does transactions internationally?

Would you like to enjoy the following experiences?

  • ✔ Zero monthly fees
  • ✔ Super cheap online and international transfers
  • ✔ Mid-market exchange rate
  • ✔ The ability to issue invoices to customers
  • ✔ Bank account integration with accounting software such as Quickbooks and Xero
  • ✔ No hidden fees
  • ✔ Multi-currency account – receive and hold 55+ currencies

Then look in the way of TransferWise.

transferwise-business-account-canada

Transferwise Business Account is the perfect solution for Canadian businesses that are looking to transfer money internationally.

The company prides itself on its low fees and quick transfer times while also providing a safe and secure environment to keep your funds in top condition. As a bonus, the company helps businesses make international payments and invoices in the easiest way possible. 

This Transferwise for business review will explain how a Transferwise business account works and how it can save your business plenty of money.


TransferWise for Business Review

transferwise-business-account-canada-cheap-international-business-money-transfers

About TransferWise (now Wise)

TransferWise has gone from strength to strength since its inception in 2011, with over 10 million transactions completed in 80+ countries. Their name was changed to Wise during their tenth anniversary in 2021, as they are now more than a money transfer service.

Despite the growth in rivals, the organization has risen to the occasion with some stunning new features and consistently competitive pricing.

Wise has improved its Business account for the worldwide market, allowing customers to receive invoices and wages in tens of currencies with real exchange rates.

More >> TransferWise Canada Review


How does TransferWise (now Wise) Work?

After paying enough money transfers and exchange fees to big banks, two good friends from Estonia – Taavet and Kristo – decided they’d had enough. They utilized a “loophole” to get the money in the currency they needed practically instantly and at little cost.

Taavet put his Euros in Kristo’s Estonian bank account, and Kristo put his pounds in Taavet’s UK account. Both got the cash they needed almost immediately, and neither paid extra for lousy exchange rates or exorbitant fees.

Their company, Wise, operates similarly but on a grander scale. The firm itself maintains bank accounts in several countries worldwide, and when someone from another country sends you money, it does not go straight into your account; instead, it goes to the Wise-owned account in that country.

Because the money comes from a Wise account, the fees are much more affordable. Even more impressive is that the transfers are just as quick or quicker than traditional bank transactions.

Wise is popular among individuals and businesses worldwide who require low-cost and quick money transfers, which Wise delivers. No successful business wants to let money get away from it, and that’s precisely what banks do.


What is TransferWise Business Account, Canada?

Business owners in Canada who want to take advantage of cross-border remittance services can benefit from a Business Account with Wise. With the real exchange rate it offers and the ability to manage international money transfers, payments, and invoices, you may send, spend, and receive multiple currencies. You can integrate the system into your e-commerce store using a specific API.

Transferwise supports various currencies and lets you hold them all in your multi-currency account (borderless account). You can send money to banks directly in over 80 countries. Open a business account with them, and you’ll be able to use all of their tools, such as foreign payments, currency exchanges, and API manuals.


Who is TransferWise Business Account Canada Suitable For?

Most types of businesses may open a Wise Business account. This includes:

  • Sole traders/Self-employed people
  • Limited and public companies
  • Partnerships
  • Trusts and charities in Canada, UK, US, EEA,  Australia, Switzerland, and New Zealand

Prohibited businesses include the cryptocurrency, tobacco, and adult entertainment industries. If you own multiple businesses, you may create a Wise Business account for each one, but you can’t combine more than one company to the same account.



TransferWise (Wise) Mid-Market Exchange Rate 

When banks and other money transfer businesses trade between themselves, they use the mid-market rate, although they seldom pass it on to you. This “real” rate sits in the middle of the asking price and selling price. It’s the fairest rate because it’s the market’s natural rate.

This is the rate Wise gives you when sending and receiving money to and from people or businesses. Wise obtains this rate from Reuters, which updates it in real-time while the market is open.

Wise uses the mid-market rate for all personal or business transactions, so you are charged the same rate as most high street banks and other transfer providers. Although the personal and business exchange rates are identical, business accounts have a higher maximum transfer amount.


How to Create a Wise Business Account

To sign up for a Wise business account, go to their website and provide your email address, password, and country. You’ll also need to document your identity using a photo ID, proof of residence, and a picture of you holding the identification. After that, you’ll have to describe your business and yourself in further detail.

The following are the details you’ll need to provide about your business:

  • Your industry
  • Your location
  • Online or social presence, if any

If your business is registered:

  • Business registration (if applicable).
  • The name, date of birth, and country of residence of all legal business owners and directors

Note: If you are self-employed or a sole proprietor or indeed to use the account for a side-hustle, you can open the TransferWise business account in your personal name. You do not need to have a registered business in Canada.

To ensure that you’re who you say you are, they’ll also need personal information about yourself. You may be asked to provide additional proof that you are authorized to act on the business’s behalf if you’re not a company director.

You’ll be charged a one-time set-up fee. There are additional country-specific checks for businesses based in the United States, Singapore, Hong Kong, Japan, or New Zealand.


What does Wise (formerly, TransferWise) Business Offer?

The Transferwise business account has all of the same capabilities as the Wise personal account. The following is a list of additional features available on the Transferwise business account Canada, in addition to personal features.

1. Batch Payments

Batch payments is a feature that allows you to send numerous payments to vendors, freelancers, foreign contractors, and staff. This may be loaded as a CSV for faster processing. There is no ongoing transfer mechanism to take away the need for routine administrative activities.

2. Multi-User Account Access

Delegated access with limited capabilities is possible in the Wise Business account. Allow your bookkeeper to have direct access to the Wise Multi-currency account for reconciliations, for example.

3. Xero and Quickbook Integration

Consider integrating either of these accounting packages to Wise. This lowers bookkeeping reconciliation time and increases visibility into your company’s financials.

4. FX Optimized Business Debit Card

The Wise Borderless payment card is also accessible for businesses. Useful for business travellers, paying foreign subscriptions, and other services denominated in a different currency to your company’s home nation.


What Wise (TransferWise) Business does not Offer

Risk Management Tools

Wise does not offer collaboration capabilities that a growing global company would require to manage its currency risk profile. It does not provide the tools for businesses to handle regular currency fluctuations.

As the business owner, you must choose when to exchange currency, whether directly to the receiver or via a multi-currency account, to save money on future business expenses associated with currency market fluctuations.

There are no hedging tools available, such as Forward Contracts, for you to use. Also, there are no FX market experts on hand who can help you manage currency risk for your company.

Regular Batch Transfers

Batch payments cannot be automated and must be manually generated. This can extend the time it takes to process international payments.



TransferWise Business Account Fees

Setting up your Transferwise Business account Canada is entirely free. You may also establish your Institution number, Transit number, and Account number without cost. There’s a modest, transparent fee to convert currencies in either your account or if you use your Wise Business Mastercard to make a purchase in a currency you don’t have in your account.

Transfer fees are determined by the currency pairs and targeted nations, with costs ranging from 0.5% to 1% of the transaction amount. The major currencies have lower costs, while more remote countries may result in additional fees for processing. 

For example, it costs 93.43 CAD to send a 10,000CAD transfer to Nigeria in their local currency, but only 53.60CAD to send it to the USA in dollars.

Transferwise business account Canada fees

There is a one-time C$42 charge (or equivalent) to obtain international bank information. 

You’ll always see their low, transparent fee upfront when you convert money in your account, and it’s always with the real exchange rate. And if you spend on your Business Mastercard in a currency other than yours, the balance is automatically converted with the lowest fee for you.


Transferring Money with Your Wise Business Account

Sending money with Wise is as simple as sending money through other financial institutions that provide the same service. You’ll need to supply Wise with some basic information for the transfer to go through successfully. 

For example, you must naturally tell it the amount you’re transferring. Following that, give the origin and destination countries and currencies. You must also tell Wise the name, address, and bank details of the person to whom you’re sending money. Another alternative is to send the money through the recipient’s email address.

How to Transfer Money with Only Your Recipient’s Email

Wise will send your receiver an email asking them to accept the transfer. Then they can input their bank information themselves. If you don’t know their details or they don’t want to share them, this is a great option.

They’ll have five working days to accept, or Wise will refund your money and terminate the transfer.

Discounts Offered Based on Monthly Transfer Volumes

Transferwise for businesses offers a volume-based discount. The fee is cheaper if you’re sending a one-time large transfer or making numerous transfers over a month.

For example, a CAD150,000 transfer will incur a 0.52% fee, CAD300,000 a 0.48% fee, a CAD1,000,000 a 0.41% fee and so on. 

Requirements for Transferring Large Amounts of Money

Suppose you’re sending a huge sum of money from your Wise Business account. In that case, Wise may need some documents depending on whether you’re sending from your company revenue, investments, a loan, or something else.

The following things, among others, must be included in the documents:

  • Your business name
  • The senders
  • The recipients
  • Transaction amounts
  • Transaction dates

Wise (TransferWise) Business Card

Although you may use Wise without having a physical card, it is convenient to have one and link it with Google and Apple Pay. You might connect your team members’ cards to their accounts as well.

You can customize your Webwise business cards in a way that lets you set a spending limit as well as enable or disable contactless, online, and in-store transactions for each card. This helps you to keep track of how much money your employees spend.

Wise business cards are global and may be used worldwide, allowing your team or staff to pay like locals wherever they go and at the real exchange rate with no extra costs.

The card will not operate in these countries: Afghanistan, Burundi, Central African Republic, Cuba, Chad, Congo, Eritrea, Iraq, Iran, North Korea, Libya, Palestinian Territories, Sudan, Somalia, South Sudan, Syria, Venezuela, and Yemen.

The card is now available in Canada. You can have up to three virtual cards in addition to your physical card.


Wise (TransferWise) Business Mobile App

Customers highly regard the Transferwise Business app. Its simple, bright interface makes it simple for consumers to overview all their transfers and make a payment with a single click.

It’s Apple Pay and Google Pay compatible, and you can now add card details using your camera instead of having to type them in yourself.


Wise Business Account Services

Invoicing

If you don’t have an existing accounting or invoice tool, Wise allows you to generate and send up to 1,000 payments with just one transaction using their batch payments tool to create and deliver one-off, recurring, and bulk payments at low rates.

Payments

It’s simple to send domestic and international money to your staff or freelancers if you have them at home or abroad. The most significant part is that they’ll be paid in their national currency without any transfer fees.

To access the funds, the receiver does not need a Wise account. It is immediately transferred to their local bank account. All you need is the recipient’s bank account details or email address.

API Integrations

Wise offers an email API, allowing your clients to make online payments themselves. It’s beneficial for small business owners who might find it easier to pay invoices online than setting up a bank transfer or other payment services. It may be utilized in a variety of situations:

  • Obtaining real-time notifications on platforms such as Slack
  • Generating payments from invoicing software
  • Automate invoice payments, standing orders, recurring transfers, or payroll
  • Simplify expense reporting
  • Automate conversions and monitor exchange rates
  • After you’ve created a sandbox account, you’ll be able to start using the API right away.

Banking Alternative

Wise Business users can set up a Wise Business account to function like a local bank account in the United Kingdom, USA, Eurozone, Australia, and other countries.

This option may be used to start selling in any currency on Shopify or Stripe, for example. Also, to pay your business costs online or in-store without charge, or set up direct debits.

You’ll have all you need to do business in another country. Local sort codes, routing, and IBAN numbers are available and may be used just as you would bank account numbers.


Is Wise Safe?

Even though Wise isn’t a bank, they don’t engage in speculative investments with your money as other big banks do. These are some of the reasons why you can be sure your money is in safe hands.

Your Money is Safeguarded with Top Banks

Wise keeps your money in safe, long-standing financial institutions, so it’s not connected to their accounts and isn’t available to the partners in their regular course of business.

FINTRAC Regulates Wise

Wise is regulated by FINTRAC and several authorities worldwide. The Wise Group’s policies and procedures fall within the guidelines of these authorities.

Data Protection

Wise is dedicated to keeping your personal information secure and is upfront about how they collect, use, and store it.

Extra-Secure Transactions

Wise uses two-factor authentication to secure your account and transactions. That means only you and no one else has access to your money.

Dedicated Anti-Fraud Team

They have a dedicated anti-fraud team that works 24 hours a day, seven days a week, to protect your money from even the most sophisticated fraud.


Perks of Using TransferWise Business Account in Canada

  • Better exchange rates: Wise uses the mid-market exchange rate, the best available on the market. As a result, you get more money for your money and avoid exchange fees and rates set by banks and financial institutions.
  • Low fees: In addition to better and more transparent exchange rates, TransferWise’s costs are incredibly minimal.
  • Transparency: Transferwise doesn’t profit off exchange rates as other big banks do. So, they’re always open about their fees and how much you will get in return.
  • Integration with Xero and QBO: It’s fantastic that TransferWise’s bank feed can be integrated with Xero and QBO, making bookkeeping and reconciliations easier.
  • Virtual bank accounts: Wise offers virtual bank accounts and local bank account numbers in many countries. You can use them to pay suppliers, taxes, and employees, etc. This might be beneficial for online retailers who operate on several foreign Amazon sites.
  • Payment options: There are a variety of options for paying to Wise. Local bank transfers, debit and credit cards, as well as country-specific solutions are all available. The faster the transfer option, the higher the cost.

Where Can TransferWise Business Account Improve?

  • No Customer support by phone. Some consumers would want to talk with a real person.
  • Only bank account transfers are available. You can only send money to bank accounts with no cash pickups option.
  • Debit cards are not yet available for the Canadian account.

TransferWise Borderless Business Account (now Multi-Currency Account) 

Without ever setting foot in a specific country, the TransferWise Borderless account functions like having a local bank account there. With a Transferwise Borderless account business, Canadian businesses can:

  • Create accounts to pay and receive payments just like a local business in the country.
  • Get paid like a local in up to 10 currencies.
  • Send money to 80 different countries with minimal fees and no hidden costs.
  • Obtain their own UK account number, US routing number, Euro IBAN, etc.
  • Avoid Exchange rate mark-ups – when transferring money across currencies, there is only a small transparent fee, and all conversions are done at the real mid-market exchange rate (i.e., the one you see on Google).
  • Keep track of and manage balances in 54 currencies – saving money on needless conversions. Currencies include US Dollar, British Pound, Euro, Canadian Dollar, Australian Dollar, Danish Krone, Hong Kong Dollar, Swiss Franc, Hungarian Forint, Norwegian Krone, Japanese Yen, New Zealand Dollar, Swedish Krona, Singapore Dollar, Polish Zloty, Bulgarian Lev, Czech Koruna, Romanian Leu, United Arab Emirates, Croatian Kuna, Dirham, Georgian Lari, Mexican Peso, Peruvian Sol, Israeli New Shekel, Turkish Lira, South African Rand, and Ukrainian Hryvnia.
  • In a matter of seconds, convert money from one currency balance to another.
  • Save money on maintenance expenses, as there are no set-up or monthly costs, and you won’t lose any money if the business fails.
  • No mark-ups are applied when exchanging currencies. A tiny transparent fee is applied, and all transfers are made at the actual mid-market exchange rate (i.e., the one on Google).

How Does TransferWise Business Account Compare to Other Competitors?

Many old and new rivals have been attempting to compete with them since Wise (Transferwise) debuted ten years ago. Two of the most notable examples are PayPal and 2Checkout.

They both have their advantages and features that entice businesses, but neither matches the meagre fees for transferring money that Wise offers.

PayPal vs Wise

In a nutshell, transferring money with Wise is less expensive than using PayPal. Namely, because, unlike PayPal, Wise does not profit off exchange rates. Furthermore, the overall transfer charge is quite low. 

PayPal inflates exchange rates when sending and receiving international payments, so it’s difficult to perceive what you’re paying for. This is an aspect where Wise shines.

Despite everything, PayPal is far more well-known. As a result, clients and consumers may feel more at ease with them, particularly when handling significant sums of money.

2Checkout vs Wise

When it comes to the number of countries they service, 2CheckoutOut outshines Wise. Wise only supports about 80 countries, whereas 2CheckoutOut services nearly 200 countries. However, 2Checkout, like PayPal, has high transfer fees. For example, if you want to move money within Canada, you must pay a fee of 3.4% of the entire amount plus $0.45.

It’s also worth noting that the cost of making an international payment increases significantly (which is where Wise shines). 2Checkout users not only have to pay a 1% cross-border fee, but they must also pay for currency conversion. This may be as much as an extra 2-5%.

READ ALSO >> OFX vs TransferWise


Is a TransferWise Business Account Right for You?

Yes, if you:

  • Are a Canadian entrepreneur who wants to build and grow your e-commerce business globally.
  • Are freelancers or small/medium business with international clients.
  • Are willing to open a virtual bank account in the United Kingdom, US, or Eurozone.
  • Would like lower transfer fees and better exchange rates than local banks provide.
  • Would like transparent and predictable pricing and no hidden fees or commissions.
  • Would like to save time on paperwork and money on hidden bank fees.
  • Wish to manage businesses in different countries, currencies, languages, and legal systems all from one location.
  • Would like the ability to hold funds in local currency for ease of access without paying interest or having your funds locked up in a separate account while it’s converted.

Overall, If you want to send or receive money overseas, TransferWise makes a lot more sense than PayPal or a bank transfer. Even in the first few months, the amount of money you will save may be used to help grow your business.

No, If you:

  • Sell products in just one currency and do not need to use multiple currencies later down the line.

FAQs: TransferWise Business Account, Canada



Final Thoughts on TransferWise Business Account Review, Canada

At the end of the day, Transferwise is a good option for your business. You can avoid hidden bank costs and get complete control over your money. You will also receive good customer service to answer any questions, concerns or troubleshoot problems to get things done correctly.

Transferwise is a transparent way for Canadian businesses to manage international accounts and make secure, reliable payments abroad while saving on costly exchange rates and bank fees. While the platform cannot fully replace a business bank account, it can serve as an excellent supplement for managing your company’s finances. 

Transferwise enables you to trade in numerous currencies and store, send, and receive them all. This can be useful if you have clients from various countries. There’s also an API that has step-by-step instructions for integrating it with your website and business.

Customers’ comments on Transferwise business account review sites appear to be quite good, and many customers utilize Transferwise regularly without difficulty.

If you are looking for a cost-effective solution to send funds internationally, consider signing up for a free trial of their business account today! What do you think about Wise? Have they improved on the TransferWise model? Are there any features you would like to see in the future?


AUTHOR

Charity Oisamoje

Charity's professional competencies and expertise make her qualified to write about this topic. She is an expert at collecting details, verifying facts, and making complex subjects easy to understand. Backed by solid credentials: ✔️MBA in Finance ✔️Canadian Investment Funds (IFIC) Graduate ✔️Masters Degree in International Business ✔️Chartered Professional Accountant (CPA) Candidate ✔️Chartered Insurance Professional (CIP)
Learn More >> About Page


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