Transferwise – How to Send Money Online to Friends & Family
Over the course of my travels in Asia and North America, I found reasons why I needed to send money across borders after my travels. In Thailand I stayed at a permaculture farm called Sahainan. The farm is run by Son Dat who is an amazing community leader and wants to build a school for the indigenous local children living in Nan. After spending two weeks on the farm, one of the best experiences of my life, I wanted to send a small donation once I got back home and started working again. Of course, sending money to rural Thailand is a little tricky!
I had three options: Send Cash or a Check by mail, use my local bank or Western Union, or use an online money transfer like Transferwise. What matters is getting the money there reliably, cheaply and quickly. Luckily I know Son Dat uses email so I chose Transferwise. This way he didn’t have to commute all the way into the city to deposit a check which is an hour drive from the rural farm. It’s a great service I’ve used time and time again after my travels. Here is how it works.
I’ve spent hours running around a city trying different ATMs to get cash out with friend! Sometimes ATMs just don’t work, it happens. It’s scary and worse case scenario I’ve had to loan cash to friends I am traveling with and wait for them to pay me back later, using Transferwise.
What is Transferwise & How does it work?
Transferwise is an online money exchange that has some of the lowest fees for transfering money internationally. The advantage Transferwise has over banks and Western Union is that the money you send isn’t the money your friends and family receive. Sounds tricky but it’s ingeniously simple.
Basically Transferwise has banks accounts all around the world in different currencies. So one account in the United States in Dollars and another in Japan in Yen. Like having two different pockets.
When you send money on Transferwise in Dollars from the United States, it goes into one of their pockets and they take out Yen from the other pocket to send to your friend in Japan! This works because someone else is doing the opposite: Sending Yen from Japan to Dollars in the United States, creating balance and harmony!
Making an Account
Transferwise can be used for personal money transfers and also for Businesses like freelancers who work online. Setting up an account is easy and takes less than 10 minutes. Start by selecting an account type “Myself”, then enter your phone number to confirm it’s you. Choose a reason why you need to send money such as paying for goods or receiving money for freelance work.
Next, you’ll be asked to verify your ID, see below.
If you select “My Business” you’ll be asked for more info such as the business name, type of company, your role and the official registration number.
Photo ID for Verification
Sending money online through an App like Transferwise is still a legal process, no different from your Bank Account. So you’ll need to upload your ID, either a photo of your passport ID page, your national ID card or your Driver’s License (Front & Back).
You can take a photo directly through the App and submit it. It took less than 2-3 minutes to receive confirmation that my ID has been verified, but the website claims it may take up to 3 days. I would reasonably expect confirmation within an hour.
The Cost of Sending Money on Transferwise
Sending money on transferwise is easy and cheap. Most banks and Western Union charge a fixed fee like $5.00 and a percentage fee like 5% because of the exchange rate. You might be familiar with this because credit cards charge 3% to convert currency when you take out cash at the ATM, or use the credit card to pay in a different currency like a hotel in Japan with a US credit card. Transferwise doesn’t charge an exchange rate fee.
When I tried sending money from the USA to Japan Transferwise charges $4.96 USD. Not bad, but as the total increases, the fee becomes more reasonable only $13.88 on $1000. If you were charged the standard 3% like on your credit card, this would cost $30 + a fixed fee on $1000.
Info Required to Send Money on Transferwise
To send money on Transferwise you’ll need to reach out to your friend, family member, business or charity to get the following information:
- Legal Name of Person or Business
- Email Address
- Physical Address & Postal Code
- The Bank Name & Number (Or Code)
- The Bank Branch Name & Number (or Code)
- The Account Type: Checking, Saving
- The Account Number
Ask for both the Name & Number (Or Code) for the Bank and Branch because not all countries use the same system for identifying banks. Europe uses “IBAN”, China uses a 12 digit code “CNAPS” while the USA, Canada and Australia use a 9 digit account numbers.
You don’t need to know the specifics of each system because there are drop down lists on Transferwise with both the name, numbers and codes listed.
Accepting the Money Transfer
Once the money transfer is sent, the funds are deposited automatically! The recipient doesn’t need to confirm anything or visit their bank.
The recipient receives an email “Your Name has sent you money” listing the details including the amount and on what day you should receive the funds. You can also include a small message saying what the money is for like you would on a regular check.
More Info on Sahainan Permaculture Farm
I first discovered Transferwise because I wanted to send a small donation to the Thailand Permaculture Farm called Sahainan.
Sahainan is a family owned farm that teaches a 10 day permaculture course at the beginning of every month. Travelers and locals alike are welcome to stay and take the class, or just work on the farm for a modest daily fee of $5 dollars which include meals and a few excursions.
The farm is part of a community of Lua people, a minority of Thailand that had their lands taken away during the 1960s and 70s. Today, the Lua people have been returned some land inside the national parks however Sahainan aims to continue teaching the ideals of the Lua people by building a local school and promoting traditional agriculture that is both healthy for the people and the planet.
Find out more at Sahainan.com
