Banking in Huatulco – a Wise Account Review
The world is small. Travel, business, relocation, and movement around the globe has been and is increasing dramatically, but the systems we use are struggling to keep up. Looking for the best ways to bank or access your money while travelling has remained one of the biggest challenges to anyone who looks outside their home country. Until now. Not only is Wise the best way to bank in Huatulco, but it has also quickly become the best way to send, receive, convert, and use your money while abroad and at home!
Wise (formerly Transferwise) is creating a platform that allows us, normal everyday people, to access and exchange our money in dozens of currencies around the globe without paying big fees to the bank. The days of spending hours looking around for the best exchange rates, which banks charged the fewest fees, or which banks had international accounts are far behind us and can all be replaced with a simple application on your phone. Wise is absolutely the best (and basically only) banking option for travellers, expats, or anyone who just has a friend in another country. Let me show you why!
What is Wise?
First developed in 2011 by two friends in Estonia, Wise is a mobile banking app that lets you receive, hold, and exchange money into almost any currency you might need. And the best part? Wise is completely free for personal use!
I first came across Wise when I was planning my first solo trip to the UK in 2016, and it was a 4-year-old tech start-up. I was 21 and desperately trying to navigate the currency exchange process without paying insane fees. I was completely unprepared for how difficult it was, I thought people travelled all the time! This company looked interesting but didn’t cover the Canadian dollar at the time, so I was stuck with traditional methods.
Now in 2022, the company has rebranded, serves over 50 currencies, and continues to grow.
If you love following the journeys of start-ups, I highly recommend you read the History of Wise here.
How Wise Works
Wise allows you to conduct three main international banking activities:
- Hold a “Bank Account” in any of the 10 currencies in this photo
- Receive and hold money in over 50 currencies
- Send money in over 50 currencies
What is a Wise “Bank Account”
A Wise bank account works pretty much like any chequing account. You can put money into it, and you can take money out of it. The main difference between a Wise Account and a traditional chequing or savings account is that you will not receive any interest for leaving your money in the app.
For the currencies in the above photo, those accounts in Wise give you banking details for that country. For the other currencies supported not on that list, Wise allows you to hold and send money in those currencies but is unable to provide banking account details as of yet.
Why Wise is the Best Bank for Travelers & Expats
In order to open a bank account in a currency outside of your home country’s currency, you would normally have to go to a bank in that country in person, wait to see a teller, and then prove your identity and ability to live and work in that country. The fact that Wise lets you do all of that without needing to be a resident of that country is what makes Wise the absolute best bank for travel and nomads!
The other reason Wise is the best international travel bank is that it gives you the actual, real conversion rates! That’s right, Wise always transfers at a mid-market rate, so when you transfer your money with Wise you get the real conversion rate you see on Google. There is no other way for us average people to access this rate. If you have ever converted currency in your bank you know that you get a much worse conversion rate, and sometimes added fees.
In 2022, Wise has now rolled out debit cards in several countries. This makes it even easier to use your Wise money because now you can skip sending it to your bank!
How to Add Money to Your Wise Bank Account
Obviously, before you can do any converting, you need to have money in the account! There are 3 common ways to add money to your Wise accounts:
- Receive a direct deposit.
Because I get paid in USD, my paycheck goes to my Wise USD account. - Receive from another Wise member
You can add friends by phone number, or connect your contact list to see who you know is on Wise. You can transfer between friends in seconds! - Add money from your personal accounts.
You can send yourself money with many methods, depending on your home currency. But generally direct debit or a credit card will be available options.
Why you need Wise for Banking in Huatulco
So now that I’ve told you all about it, why is a Wise account applicable to your travel and banking needs? Here are some instances in which you might need Wise:
You are a contract worker or digital nomad working for a company in a different country
- Open a Wise bank account in the currency the company would like to pay you in and provide them with your banking details.
- You will now be able to receive direct deposits with no fees!
- You can then send this paycheck to yourself if you want it in your home bank account, or leave it there to be used with the Wise Debit Card.
You are moving to a new country,(maybe Mexico?) and need to send money to a landlord, accountant, guide, whomever.
- Add money to your Wise account using the methods above
- Send money to your contact’s Wise or normal bank account directly in the app
You are buying a house in Huatulco and want to transfer large amounts of money to a Mexican bank without paying huge fees.
This is probably the most popular use of Wise here in Huatulco! Wise has really high transfer limits, so you can send large sums of money from your Canadian or US bank account to Wise, and then convert it to pesos or send it to whomever you need to. It’s waaaaay cheaper than paying for a wire transfer, and is so much faster too! Wise is a very convenient way to bank in Huatuloc, and in Mexico.
You want to send money to a friend in a different currency
This is how we use Wise the most for our banking in Huatulco. The dive shop uses it to receive deposits or payments from clients, and we use it in our business to collect our wages from our mostly Canadian and American clients, especially when they are away from Huatulco.
It’s really difficult to predict the exact amount in USD or CAD someone would need to send us to get our rate in pesos when I withdraw it from the bank, but because Wise lets you dictate how much you want someone to receive it takes all the guess work out!
You could also use it so pay someone back for a meal, send a birthday gift, or any of the reasons we use Venmo, e-Transfers, PayPal, etc.
What Kinds of Fees does Wise Charge?
Obviously, Wise can’t do all of this amazing stuff for free. But what I love is that they are 100% transparent about what the fees are going to be before you make your transaction, so you know exactly what you will be paying and what your receiver will see.
There are some exchanges that have no fees, some that have a tiny fee, and more complicated transactions will have a higher fee. But no matter what the fee is, I would be willing to personally guarantee that it’s much lower than any other money conversion method you might be able to find!
Tips and Tricks to get the most out of Wise
In addition to the ways I use Wise in my own life and business, I have helped a lot of people use Wise to solve their international banking woes. Here are are some of the secrets I have learned along the way!
Credit cards are your friend
Aside from Wise, the other place you can usually get great currency exchange rates is from your credit card. When you pay for something in a different currency, your card will convert it directly on your statement, which saves you a lot of fees and gets you a better rate.
With Wise, this helps you in instances you need to add money to your Wise account, but your currency is not yet supported. This happens a lot in Mexico as the MXN peso is not yet fully supported by Wise.
Example:
I am Mexican and need to convert money to the Euro for travel or because I am moving and need to pay my housing deposit. Since you cannot yet add funds from your Mexican bank account, create a EUR account in Wise, and use a credit card to add money to that account. Your credit card will give you the best rate.
You could also add money to a MXN account that way, then convert it to Euros.
How to Use the Wise Debit Card
The Wise Debit Card started rolling out in 2020, and became available to Canadians at the end of 2021. I just got my card and haven’t had the chance to use it personally yet, but here is how it works.
It works like a debit card – wow! You can use your Wise card online, in stores, and digitally like you would any of your other cards. You can also select your withdrawal limits and approvals for each type of use.
When using the card, Wise will default to your account that is in whatever currency you are paying in. For example, if you are paying for something in Mexico in pesos, Wise will take pesos from your MXN account.
If you use your card and there is no MXN in your Wise account, it will take money from your default account (CAD for me) and convert it for you for that transaction. Like a credit card would.
So far I have used my Wise card to:
- Pay for meals in a few restaurants in Huatulco that card payments.
- Pay for things online! Specifically, I paid for our hotels for our trip to Europe, in Euros with the Wise multicurrency card.
It’s just amazing to me! Banking with Wise has totally changed how I handle money when I travel.
FAQs
What is the difference between an account with banking details and an account without?
The 10 (as of this moment) accounts that give you banking details act more like a checking account in that they allow you receive money in that currency from an outside source such as an employer. The other available currency accounts without those details allow you to receive in that currency from within Wise, convert money into that currency and spend it with your Wise card, or send money in that currency through Wise or direct deposit.
What does it cost me to use Wise?
Wise is free! Aside from the small fees they take at processing, you don’t pay anything for using the app. Amazing, right?!
I don’t have a way to get a Wise debit card, how can I take out cash in Huatulco?
If you aren’t able to get a Wise card yet, that’s ok! Your debit cards from your home country will work in the machines here, you just might pay some extra fees.
If you’re from Canada, I HIGHLY recommend getting a Scotiabank chequing account before you come to Mexico. There are 3 Scotiabank ABMs in Huatulco, and a Scotiabank Branch in Santa Cruz. So anything you can’t do with Wise, you would be covered by Scotiabank.
Have I convinced you that Wise is a great option for banking in Huatulco? Do you have a banking problem you think Wise might be able to solve? Let me know!
P.s. Use my link to get some free money when you sign up for your Wise account!
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