Transferwise Borderless Account Review

Transferwise is one of the best-known currency conversion services, offering rates that are typically far more generous than high street banks.

Recently they introduced an exciting new service that they call their “Borderless Account”. I

t allows you to hold money in multiple currencies – just like Revolut does – but with some key differences.

Having used it myself for the last few months I wanted to report back on my own experiences – both the good and the bad.

In this way, if you’re currently considering setting an account up then my personal Transferwise Borderless Account review should help you make an informed decision…

What is the Transferwise Borderless Account?

The Transferwise Borderless Account is a virtual (online) bank account. Unlike traditional bank accounts, therefore, you won’t be popping into your branch to operate your account. Instead everything is done online – either on their website or on their app.

Apart from this minor difference the account operates very similarly to other bank accounts. You can pay money in using your debit card or a direct bank transfer. You can select what currencies you want active in your account (I chose pounds and US dollars), and money can be exchanged between the two at will.

A more recent innovation is that you can now request a debit card that connects to your account. You can use this just like any other credit or debit card to make payments in your own country or overseas.

Who Would a Borderless Account Suit?

I’m based in the UK but run a range of websites which service visitors from around the world. In almost every case, however, my primary focus is the US market. As a result my website income is almost exclusively in US dollars, as are my outgoings, such as payments for web hosting and marketing tools.

It therefore made sense that I shopped around for an account that would hold US dollars despite not residing in the US.

However there was also one other crucial thing I needed – a “local” bank presence. Some of the affiliate programs I promote will only deposit directly into a local bank account. Otherwise they post a US dollar check, which takes a week to arrive in the UK, and then another week to process.

So having money deposited directly into my account saves me time and hassle.  

When you choose the currencies in your Transferwise Borderless Account you will also gain access to a local bank account which can be used for such deposits. For international website owners promoting the Amazon affiliate program, for example, the Borderless Account is an absolute godsend.

So the Transferwise Borderless Account is the perfect solution for all bloggers, website owners and affiliate marketers located outside the USA. But who else might benefit…?

Expats – If you’re living overseas then having an easy way to transfer money from one currency to another can make life easier (and cheaper). For example you could receive your monthly salary in GBP, turn it into Polish Zloty and then spend it when you’re back in your home country.

Alternatively, if you’re just making the first move abroad, a Transferwise Borderless Account could be a useful way to access your savings while overseas in the local currency.

Travellers – For backpackers and other passionate travellers having a simple way to access local currencies at super-competitive rates can be worth its weight in gold. However it’s not just about saving on bank fees for currency conversions; you can change your money back when you get home with a few clicks, so you don’t have to worry about piles of unwanted currency sitting around at home.

Second Home Owners – If you own a home overseas then you probably have to pay your bills in the local currency. Maintaining a Borderless Account makes this a simple and cost-effective process.

Amazon FBA Sellers – If you’re paying your supplier in China, earning in US dollars and living in the UK then things can all get a bit confusing. Once again, the Transferwise Borderless Account makes shifting money around, paying invoices and receiving payments simplicity itself.

Pros of the Transferwise Borderless Account

I don’t mind admitting that over the last few months I’ve grown to love my Transferwise Borderless Account. It keeps my business finances separate from my personal income, which makes accounting easier. It also allows me to be far more efficient with cross-border transactions.

Here are a few of my favourite things about having my account…

Nifty Mobile App

While you can access your account on the Transferwise website I must admit that it is the app that stands out in my mind. It is quick, efficient and simple to use. I can very quickly jump between my different “virtual” accounts to check my US and UK balances, transferring money as required. It allows me to stay in constant contact with my business finances no matter where I am or what I’m doing.

Transaction Transparency

Another element I really like about the Borderless Account is the notifications I get on my phone every time a transaction is made. If you’re a heavy user then this can be turned off, but for me as a small business owner it makes a lot of sense.

I can see the instant I receive a payment, or when any routine card payment is made. I believe this helps with fraud prevention.

It’s also quite nice when you’re sat at work and you see that the Amazon affiliate program just deposited a chunk of cash into your account 😉

Local Bank Account

I’ll be honest; if it weren’t for the local bank account feature I’d never have signed up for the Transferwise Borderless Account. Even after signing up I was doubtful that it would work very well.

Despite a few teething issues (see below) overall I would say that it has worked very well for me. I receive direct deposits from a number of US entities, in dollars, straight into my virtual USA bank account without issue.

To me, this feature is worth its weight in gold, as it not only saves a lot of hassle but can also make you look like a more established company.

Cons of the Transferwise Borderless Account

Now, while I freely admit that I’m very happy indeed with my Borderless Account there have been a few minor hitches along the way. It would therefore be remiss of me not to mention these, so you can decide whether or not these are deal breakers for you.

Minor Issues With Paypal

I use Paypal a lot for my online business. Generally the rate at which I spend money is broadly equal to the rate at which I get paid so I just leave a modest balance in there at all times. Just recently, however, I had a sizable deposit into my Paypal account that I wanted to move into my Transferwise Borderless Account.

I added my Borderless Account details to my Paypal account and completed the verification process. I then arranged to transfer the funds from Paypal to Transferwise. The process worked fine, with the money showing up just a day or two later.

The odd thing was what happened next – I received an email from Paypal informing me that Transferwise had alerted them to the fact that my Borderless Account had been closed. Consequently, Paypal decided to remove my Borderless Account details from my Paypal account.

Of course, my Transferwise Borderless Account is still very much active, so I don’t know what the miscommunication between the two was?

In closing, while I did manage to transfer my money, I’m not sure what will happen in the future if I want to do the same thing again. Therefore if you’re looking for an account to connect to Paypal then this may not be the best option for you.

Teething Problems with Account Details

While you most certainly do have access to a “local” bank account (such as mine in the USA) Transferwise aren’t always clear about the finer details (IBAN anyone?) so it can take a little while to get everything set up smoothly. I’ve even had a couple of companies tell me my account details were wrong. I checked and confirmed my details were correct and soon enough the payment was received.  

My assumption here is that some companies are running automated software that hasn’t kept up with Transferwise technology.

So, while there were some minor annoyances get everything set up initially, I can confirm that everything is working smoothly now. After some 3+ months of daily use I’m confident enough in the service levels that I’m happy to carry on with my account.

Update: Card Outage

A few weeks ago Transferwise suffered a temporary issue with their debit cards. As a very light user this actually didn’t affect me at all, and Transferwise sent a push notification via their app to inform me of the issue. A short while later this was resolved, and a secondary alert was sent out to confirm this.

For me, this wasn’t a problem. If anything, I was impressed with the communication when compared to more traditional financial institutions. All the same, some heavier users were no doubt affected for a short period of time.

Conclusion

I’m really excited about the Transferwise Borderless Account. I think it’s what many of us need in this increasingly international world. While many other more traditional companies are dragging their feet and making currency conversions and overseas bank accounts complex and expensive Transferwise are doing quite the opposite.

If you need to receive or send money in anything other than your native currency then I’d strongly encourage you to sign up for an account today. It takes a matter of moments, your Mastercard turns up in less than a week and before long you’ll be all sorted. Even better, there are no annual fees at present so it’s not an issue if you only use your account occasionally.