Travel cards can be a really effective way to access your money when you're
overseas but traditional prepaid travel cards can often be a ripoff. We're going
to put two of your other options to the test, TransferWise and Revolut. These
are two of the most innovative foreign exchange products and we're going to put
them head-to-head. In this video we'll give you an overview of each company,
their products how much they cost and in the end which we think is best. Before we
get into it though we'd love to hear if you've used either of these products
before, just leave your thoughts in the comments below but if you haven't let's
get straight into an overview of the company's. Transferwise is a money
transfer company based in the UK and they're pretty good at what they do.
Known for their transparency in both rates and fees, they stand out because
they give you the interbank rate for any transfer or currency conversion you do,
but we're not so interested in their transfers, we're more interested in their
borderless account and the debit cards that goes with it. This product lets you
make and receive payments like you have local accounts overseas and the debit
card can be used anywhere to easily access those funds by making EFTPOS
payments or ATM withdrawals. Revolut are a pretty new company only founded in
2015, while they also make international money transfers Revolute's main products
are their prepaid mastercards that can be used wherever you travel. They have
different tiers of membership and products aimed at both individuals and
businesses, which makes them pretty versatile we're going to focus on their
cards in this video, but revolute also offer insurance cryptocurrency trade and
heaps of other stuff too. Now let's find out more about the products that both of
these companies offer
Firstly, they obviously both offer a prepaid debit card TransferWise has one
standard debit card or Revolut offers different cards depending on whether
you're a business or personal customer and again on the tier of membership you
fall under. Both companies also offer support for businesses and
multi-currency accounts and they can both make international money transfers.
Where they really differ is in the account details that they can offer you,
both give you details for a UK and European account which means you can
make and receive payments as if you have a local bank account there. TransferWise
goes a step further though with accounts available in the USA and Australia,
although the debit card is still not available in either of those locations.
Finally if you're looking for a company that can also provide travel or device
insurance or cryptocurrency trade Revolut could be for you.
TransferWise is focused purely on foreign exchange. The fees are pretty different
between these companies as well so let's find out how much it all costs.
The cost of financial products is really important to take into account, but it
can be complicated to understand all of the charges involved. We'll try and
explain everything as clearly as we can because the fee structures of these
companies are pretty different. The first one is easy
it's the signup fee. It's free to create an account with both companies the cost
for getting a physical card with Transferwise is also free, while it costs
four pounds ninety-nine with Revolut. Technically though you do need to load
your TransferWise debit card with twenty pounds for it to become active. Now in
terms of monthly fees TransferWise is completely free and so is Revolut for a
standard account, but it costs seven pounds ninety-nine for a premium
membership with Revolut or thirteen pounds ninety-nine for their new metal
membership so this cost depends on what you choose to sign up to. And then there
are the conversion fees. Unfortunately this is unavoidable when it comes to
currency exchange. If you're exchanging currency in your TransferWise Borderless
account it will be done at the interbank rate - but you will be charged a
percentage fee and that fee depends on the currencies you're converting between.
Revolut give you almost the interbank rate but this can depend on the
currencies, with them you can exchange up to five thousand pounds per month
without any fees, before you're charged 0.5% for all additional conversions. Now
when you're using your card overseas, particularly for ATM withdrawals, there
are other fees to consider. With both you can withdraw up to two hundred pounds or
another currencies equivalent per month without paying any fees. It's when you're
withdrawing more than this that you need to be careful. Revolut will charge 0.5%
but TransferWise charge four times that amount two percent for all withdrawals
you make after you have already withdrawn your monthly limit. That can
add up. TransferWise will generally be at the interbank rate though while
Revolut might not be depending on where you're using it. As you can see
calculating the costs can be complicated. Our best suggestion is
working out how and where you'll be using the card and seeing which one is
going to be the most cost effective for you. For example if you plan to make a
lot of withdrawals while you're overseas Revolut might be better. So where does
TransferWise come out on top? Well there are more established company and they're
slightly more transparent about their rates and fees. On top of this they're
Borderless account is available in more countries, but what about Revolut? They
do have a wider selection of products and more options for business customers
and if you're going to be making lots of ATM withdrawals while you're overseas,
their fees are proportionately lower. So which product is actually the best? We
think both companies are good in different areas and the best one for you
will depend on what you want it for. If you purely want a travel card we
think revolute is a great product they have lots of card options, you can choose
your level of membership with them, just make sure you know the fees you'll be
charged and consider the currencies you'll be using it for, but if you plan
to withdraw a lot of cash and don't like fees these guys might be better. On the
other hand if you need to be making and receiving payments and making
international transfers AND would like to use a card while you travel
TransferWise is for you while Revolut have more products available what
TransferWise do, they do well and they're slightly more transparent about
what they charge. Just be careful of their monthly limits. Now this goes
without saying, but it's important when you're considering any new product that
you look into the terms and conditions. Make sure you're thinking about why you
need the card and what you're hoping it can do for you then, you can't go wrong