Revolut vs TransferWise: What’s the Difference Between These?

Revolut and TransferWise (now known as Wise) offer almost the same kind of services. Both are known to offer their customers cheap currency exchange when transferring money outside the country of their residence. How do you then decide the difference between these two?

Well, many people have both Revolut and TransferWise cards but they either use Revolut or TransferWise cards mostly. And because of this, many of our users have been asking the difference between them.

Today in this post, I will answer the question, for you to know the difference between these two money transfer services.

Let’s dive in.

Revolut vs TransferWise: Comparison

Both help you to save money on currency exchange during your international money transfer. However, there are differences in their offers and fees, and that’s what we will discuss shortly.

Revolut vs TransferWise

1. Credit card

TransferWise and Revolut have credit cards their users use to withdraw their funds at any ATM. With both cards, you can purchase items online and at any brick and mortar store.

But how do you know which card is better? Let’s compare both cards to know.

TransferWise

TransferWise issues only MasterCard to their users. With this card, you can pay for items using the currency in your account, with no transaction fees but affordable conversion fees.

The card is available to people in:

  • United Kingdom
  • United States
  • Singapore
  • Australia
  • Switzerland
  • EEA countries

However, there are limits on the amount you can withdraw at no charge, which is based on your card location:

  • Europe or UK: 2 free months withdrawals of 200EUR/GBP. After the 2 months, you’ll be charged 1.75% for over 200EUR/GBP withdrawals. Also, there’s a 50p/withdrawal fee for over 2 ATM withdrawals you make in a month
  • New Zealand, Singapore, or Australia: 2 free months withdrawals of 350NZD/SGD/AUD. After which, you’ll be charged 1.50NZD/SGD/AUD + 1.75% for withdrawal over 350NZD/SGD/AUD
  • United States: 2 free months withdrawal of up to 100USD you do. After which, you’ll be charged 1.50USD + 2% for withdrawal over 100USD.

You can use TransferWise debit cards to purchase things in places where debit cards are accepted. Also, it can be used for online payment, and in some cases, you need to verify your transaction through SMS, phone call, or their app.

Revolut

Revolut offers their customers 4 different types of cards. These cards vary according to your type, which may be any of the following:

  • Standard free account with Standard plastic card
  • Plus account (£2.99/month) with Plus card
  • Premium account (£6.99/month) with Premium card
  • Metal account (£12.99/month) with Metal card

You can use Revolut cards anywhere Visa and MasterCard are accepted, which means you can buy online or in brick mortar stores with their card without any fees charged.

Moreover, the card you get is dependent on your country of residence and you can withdrawal at any ATM and card payments in over 140 countries.

Revolut doesn’t charge for converting your money to another currency at the mid-market rate.

Recently, Revolut implemented an exchange fair use policy, allowing customers whose primary currency is GBP to exchange £1,000 or the equivalent currency free every month.

While Standard free account customers who exchange over £1,000 are charged 0.5% on any amount that exceeds the free limit.

Revolut allows you to have 5 virtual cards and three active physical cards attached to your account. However, understand that Disposable virtual cards are not counted even if you use them multiple times.

2. Fee

Here, we will concentrate on fees incurred during the process of international money transfer, including the currency conversion cost, service charges, and exchange rates.

Revolut

Revolut transfer fees differ for business and personal. The fees of Revolut include:

  • International payments outside of SEPA (Single Euro Payment Area) are £0.30 – £5.00 depending on the size of the transfer.
  • Currency exchange is between 0.5% – 1% depending on the size of the transfer.
  • Transfers done on UK bank holiday and weekends is charged 1%
  • Payments more than £1,000 per month are charged a 0.5% fair usage fee

TransferWise

TransferWise gives their customers the exact mid-market rate, which means they make a profit through added fees. However, these fees vary depending on the currency pairing. Both credit and debit fees are within 0.15% – 2%.

Moreover, TransferWise has a pricing tool that allows its customers to calculate the fee before any money transfer, which ensures transparency.

3. Security

Revolut

Revolut is not covered by FSCS (Financial Services Compensation Scheme) which protects you in case if Revolut fails, or they go out of business and can’t pay you your claim.

However, they are considered safe as they have acquired a European Banking License in 2018. If you’re considering moving all your money into your Revolut account, understand there’s no physical branch of Revolut anywhere.

TransferWise

TransferWise is not also covered by FSCS and they don’t have any banking license but are protected by FCA (Financial Conduct Authority).

They are known as the self-proclaimed “low-risk financial institution” that helps you save money on your international money transfers.

4. Refund

Revolut

Revolut offers refunds to their customers and it’s received directly to their cards, even if the card has been canceled or deleted.

However, bear in mind that this refund takes between 7 and 15 days to receive your refund in your account after the merchant has approved it.

TransferWise

TransferWise’s customers are offered their refund. Although, you will have to provide your account details to them if you paid through your credit or debit card. The money is refunded within fourteen days.

5. Support

Revolut

As a company, Revolut has an impressive support section on their website that explains fees, features and provides answers to frequently asked questions. Also, you can contact their customer service through phone call or chat.

Your chat session starts with Rita, the bot. But you can be transferred to a live agent if you’re not satisfied with Rita’s help. Moreover, they can be contacted on their social media pages or join the Revolut community.

TransferWise

TransferWise’s detailed help sections and complete guides will help you find answers to your questions. Also, you can contact their customer support through live chat, phone call, or email.

Why is TransferWise Better than Revolut?

TransferWise’s concentration on being the best at one thing, which is handling international money transfers, makes them better than Revolut. They are not trying to accomplish everything at the same time, unlike Revolut that is handling everything at the same time.

Why is TransferWise Better than Revolut

You can check our verified Revolut account features and you’ll notice that it has cryptocurrency trading, stock trading, communities, perks for travelers, and more.

TransferWise has low fees, despite covering more countries than Revolut. It has amazing higher ratings and Trustpilot reviews, which helps in its legitimacy and usefulness to its customers.

Which is Better than TransferWise?

It depends on what you want from TransferWise or others and what you’re using it for. But bear in mind that TransferWise (now as Wise) is a transparent and easy-to-use money transfer service provider.

However, if you’re the type that makes international money transfers and buys online frequently, it’s worth looking at PayPal rather than TransferWise.

PayPal

PayPal is one of the popular payment systems to buy items online. Also, it’s a convenient way to do money transfers, both to people within your country and internationally.

Final Thought

Revolut and TransferWise are good in their respective areas. Revolut has a list of banking features available to their customers and an easy way of setting an account without paperwork.

TransferWise is known as an authority when it comes to money transfers. So it depends on you to choose either Revolut or TransferWise for money transfer because both are good at what they do.