Wise (formerly TransferWise)

[Brian86]

I am not sure, actually. The explaination in the link was for me not clear. I hope B to D will (still) work, so I can transfer money directly to my wife's bank account (like I'm used to).

Edit: Ha, I understand that particular paragraph now. Read it in my own language. B to D only, next month.

Is the B you refer to an Indonesian registered Wise account? If so, you will no longer be able to hold money there for later transfer.

If it is a Wise account registered in your home country, you should have no problem still sending B to D (without her even needing a Wise account, C).

If the source of the funds is foreign, I would recommend opening a Wise account registered in your home country and use that to send funds to your wife. If the source of the funds is Indonesian, or funds you already have here, use the local banking systems to make transfers.

 

[jstar]

I don’t see the big problem, you can still send from your Wise account to another person’s bank account. As Brian said, if you have customers paying you, that might become an issue if they don’t have a Wise account.

 

[Samoerai]

I don’t see the big problem, you can still send from your Wise account to another person’s bank account. As Brian said, if you have customers paying you, that might become an issue if they don’t have a Wise account.

Yes, that is what I understand now.

 

[jstar]

We had some customers in HK who paid via PayPal. For us it sucked because of the bad currency rate but it was very convenient for them with just an email address, getting an ‘official’ invoice and the PayPal protection plan for not receiving the product. Those people would be very hesitant to do payments via Wise before the goods are shipped.

 

[Samoerai]

Is the B you refer to an Indonesian registered Wise account? If so, you will no longer be able to hold money there for later transfer.

If it is a Wise account registered in your home country, you should have no problem still sending B to D (without her even needing a Wise account, C).

If the source of the funds is foreign, I would recommend opening a Wise account registered in your home country and use that to send funds to your wife. If the source of the funds is Indonesian, or funds you already have here, use the local banking systems to make transfers.

I registered my Wise-account, I think in 2018, in my home country (with home address in The Netherlands and bank account in The Netherlands as primary account) and transferred money to my bank account in Indonesia and also to my wife's bank account in Indonesia.

After moving to Indonesia, I changed my home address to the address in Indonesia. So far, I can still transfer money (from my bank account in The Netherlands) to the bank accounts in Indonesia.
So this is: B to D.

I hope that will stay this way, after 23 May.

Edit: @Brian86 .. thanks for the warning. I just changed the address of my primary account back to the address in The Netherlands. Plus my phone number. Hope it will be enough.

 

[pantaiema]

Okay. If Revolut and similar fintech platforms will be banned soon. It seems to me an HSBC-expat account will be the only option for @Wayan. I think he can match the requirements. And that will provide him with an IBAN bankaccount, right?

You can not compare Revolut with other new comer Fintech Apps. Revolut have been in the market for long. In the EEA presence

Can you use Revolut as a bank account?

Welcome to the Revolut blog - a must-read for money management, product announcements, and user stories about all things money.

www.revolut.com

"In the European Economic Area (EEA), Revolut Bank UAB, is authorised by the European Central Bank and the Bank of Lithuania and is a bank in 30 EEA countries. "

"In the EEA, Revolut (Revolut Bank UAB) is a bank incorporated in the Republic of Lithuania, and licensed and regulated by the Bank of Lithuania and the European Central Bank as a credit institution."

But certainly you will need to check which country is issuing your revolut account.

 

[pantaiema]

First I also need to check out Revolut. A German guy lives in Jakarta wrote about the case:

""(...)
Indonesian government tightens measures against gambling payments: Wise and PayPal in focus

The Indonesian government has recently taken tougher measures against illegal gambling transactions, with international payment service Wise taking center stage. In a country where gambling and pornography are largely banned, Wise's ability to transfer payments worldwide poses a challenge for authorities to monitor illegal transactions. Verifying these transactions is also extremely difficult for Wise itself.

In contrast, PayPal positions itself as a company that prohibits gambling payments from the outset. Although PayPal does not offer direct bank accounts, it does charge high fees, especially for payments in foreign currencies.

The discussion over the regulation of payment services such as Wise and PayPal in relation to gambling transactions is gaining importance as the Indonesian government takes measures to combat illegal activities. It remains to be seen how the situation will develop and whether further adjustments will be necessary in the legislation or business practices of payment service providers in Indonesia. (...)"
Link to German spoken website: https://www.bayi.de/2024/02/29/das-ende-von-wise-in-indonesien/

Maybe this is an explanation

What you will need to be careful here is that 'Revolut has an annual deposit limit'. If it was salary, Private+State pensions, large dividend from investment; It could easily exceed that annual amount, you might need to explain the source of fund.

Source of funds | Revolut United Kingdom

Get the answers you need for any issues or questions you may have

help.revolut.com

Also you will need to think the best method on how you extract your money out to be used in Indonesia with minimum fees if the amount is relative large.

 

[jstar]

All the banks in the EU, even the smaller online versions, ask for the source of your funds nowadays when you open an account. (Previous) Occupation, source of wealth, how much do you plan to deposit, ….

 

[pantaiema]

All the banks in the EU, even the smaller online versions, ask for the source of your funds nowadays when you open an account. (Previous) Occupation, source of wealth, how much do you plan to deposit, ….

It holds true, even over a few decades ago. However, back then, the approach was more relaxed, whereas nowadays there's a stricter enforcement, especially since the introduction of the newly issued the AML regulations, which predominantly attribute the burden to financial institutions to check it.
They have changed the TCs to address this new regulation. When people apply for a new Bank account they will need to tick a lot of boxes which previous were not there. They might also come back to you to ask proof of ID and address, if they have not got your data online from banking with their other banks or Credit Referencing Agency (CRAs)

 

[Samoerai]

I want to open an user account with Revolut, because the transfers with Wise are getting more and more expensive. I just did a comparison: fee Wise is 7.46 euro and fee Revolut is 2 euro. However, I don't know if the transfer of 1000 euro with Revolut is really that 'cost-effective' as I do not have an account yet.

 

[jstar]

Revolut takes the average between Buy and Sell as rate.

It‘s not ideal as solely a money transfer tool since for bigger amounts you need to choose a plan that will cost you. With €4 per month you’d just get a €3.100 monthly transfer without fees. Only with a €9 plan you get unlimited transfers.

Also, like I said before, you need to avoid the weekends since they charge an additional 0,5% for multi currency as a ‘security fee’. And it can take some days before the money is from your traditional bank account in the Revolut account.

 

[indo_expat]

Hi guys, so here is my situation:

I usually receive payment from a US-based company that requires my bank account to have an ABA routing number. I have always received the payments via Wise, which has a routing number and a linked account number, without the need for me to open a US bank account (which would require me being a US resident).

With the new rules regarding Wise in place, starting mid-May I am no longer able to receive the aforementioned payments via Wise and would have to open a bank account that has a routing number in order to receive them. I have looked at the PayPal option, which does have a routing number, but not a linked account number (it is instead linked to a bank of your choosing), so this might not be feasible.

I am an Indonesian citizen residing in Indonesia. In light of this and the above information, what would be the best course of action? I would be extremely grateful for any advice. Thank you very much.

 

[jstar]

I usually receive payment from a US-based company that requires my bank account to have an ABA routing number.

Yep, obviously they often only allow domestic accounts. And opening a US account is not that easy as foreigner unless you have a SSN and address there.

Perhaps people at HSBC or Citi have some ideas how to get it done? Obviously better and you will be taken more serious if you’re an existing customer.

Now there is a way, that is to open a US business bank account. Obviously you‘d need to establish a US business first which could have some nasty tax implications and perhaps you don’t want to go there. But in itself it is a rather easy process since there are companies/agents specialized on doing it for you, they charge a $500 or so. Completely online.

Look for Fileyourfile and Doola. Those are just some examples.

 

[jstar]

Obviously paper checks are still quite common in the US and most (bigger) companies can write those. But that won’t help you much since there are less and less banks abroad who accept them (e.g. DBS in Singapore). And if they do, they often consider a maximum amount.

 

[Samoerai]

First I also need to check out Revolut. A German guy lives in Jakarta wrote about the case:

""(...)
Indonesian government tightens measures against gambling payments: Wise and PayPal in focus

The Indonesian government has recently taken tougher measures against illegal gambling transactions, with international payment service Wise taking center stage. In a country where gambling and pornography are largely banned, Wise's ability to transfer payments worldwide poses a challenge for authorities to monitor illegal transactions. Verifying these transactions is also extremely difficult for Wise itself.

In contrast, PayPal positions itself as a company that prohibits gambling payments from the outset. Although PayPal does not offer direct bank accounts, it does charge high fees, especially for payments in foreign currencies.

The discussion over the regulation of payment services such as Wise and PayPal in relation to gambling transactions is gaining importance as the Indonesian government takes measures to combat illegal activities. It remains to be seen how the situation will develop and whether further adjustments will be necessary in the legislation or business practices of payment service providers in Indonesia. (...)"
Link to German spoken website: https://www.bayi.de/2024/02/29/das-ende-von-wise-in-indonesien/

Maybe this is an explanation

Any progress on the Revolut application? Is it a solution for your problem with Wise?