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What are the limits with Transferwise?

JohnSeed

JohnSeed

Corporate Services
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Jan 29, 2015
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#1
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At what point would you not use Transferwise or any other EMI's for your business?

First reason would be if you monthly turnover hits 50.000 euro / dollar - that's what I read in other threads on the forum. But what else is there?
 
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#2
There aren't really any fixed limits but EMIs should be considered stepping stones towards getting a traditional bank account once your business is matured. I think the view you get by reading reports here are skewed by people who are, in one way or another, dishonest with their EMI and can't explain their transactions.

I have seen six figures EUR/USD/GBP per month flow through EMIs without any major hiccups. Occasionally they will ask for copies of invoices, receipts, and invoices but nothing insurmountable for a normal, clean, legit business. This has been primarily with Transferwise and Paysera but even with some of the less popular ones.
 
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#3
moneynetwork said:
At what point would you not use Transferwise or any other EMI's for your business?
Click to expand...

At the first point they freeze my money naturally. :p

50k turnover with a small EMI is a risk. For a larger one i.e TW then less worrying but you will stand out for special attention as you maybe in the top 0.1 percentile of their clients and will receive extra scrutiny and hassle.
 
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#4
I wonder if anyone passed the 50K mark for several months in connection and if they got troubles with transferwise?
 
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#5
I passed 60K in 9 months with personal account.Then started to ask me many questions.Source of funds.Reason of transfers.Relation with benefits.PP account details..And some more.It takes maybe 2 weeks over email.And in the end they closed my account.Without any specific reason.
 
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#6
quartz911 said:
I passed 60K in 9 months with personal account.Then started to ask me many questions.Source of funds.Reason of transfers.Relation with benefits.PP account details..And some more.It takes maybe 2 weeks over email.And in the end they closed my account.Without any specific reason.
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How did you receive that money? Was it coming from your personal bank account? Did you receive many payments from random people located in different parts of the world?

Also, what happened to the remaining balance?
 
#7
All payments was receiving from personal premiere paypal account.And Money flow was 3 people same.Also was using debit card daily.I did my best answered all their questions with proof.
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#9
At the moment when problem started there was 2000 euro. They asked IBAN or offered me to withdrawal over ATM.Maybe they can keep money with some reason but as I said I proofed source of funds as well.Just maybe they didn't like my business type.
 
#13
quartz911 said:
All payments was receiving from personal premiere paypal account.And Money flow was 3 people same.Also was using debit card daily.I did my best answered all their questions with proof.
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[/QUOTE]
So it is again a question about what documentation you were able to provide to them to backup the funding of the account. Today most EMI's as well as banks will ask for documents like invoices, references to customers and other stuff which legitimate every transaction. Failing to provide such docs. and information will lead to account closoure.
 
#14
Admin said:
So it is again a question about what documentation you were able to provide to them to backup the funding of the account. Today most EMI's as well as banks will ask for documents like invoices, references to customers and other stuff which legitimate every transaction. Failing to provide such docs. and information will lead to account closoure.
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Once your account is closed, are you forever banned from Transferwise?
 
#15
In my opinion, TW is the most reputable EMI. I am running 6 figures per month business account(also personal account) with TW since 2018. My business is very simple and low risk(I only work with marketplaces and all outgoing transfer into my personal bank account). They never asked any question, evidence or proof etc.. Several months ago they put my account in a review but passed without issues in 2-3 days.

If your business is not something suspicious, you can use them without issues but if you consider your business even medium risk then there can be issues. This is the same for all EMIs.
 
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#16
Transferwise and Fidor Bank are some of the more reputable EMI's in the industry, so far no issues what so ever. Revolut has been working fine as well.
 
#18
quartz911 said:
I passed 60K in 9 months with personal account.Then started to ask me many questions.Source of funds.Reason of transfers.Relation with benefits.PP account details..And some more.It takes maybe 2 weeks over email.And in the end they closed my account.Without any specific reason.
Click to expand...
I guess, if the start asking, expect them to close your account in the end regardless. It feels like they are more looking for reason to keep your money for longer and keeping at least some of their reputation. I can imagine even if you would have bullet-proof documents, they will still close your account. I guess they need to de-risk as good as possible, either to make money at all, or to make more money from small non-risk clients. Their risk might be more being ask questions by the authorities, regardless if they have good answers. It's just expensive for them to have to handle those questions at all.
I think TW prefers small residents with a turnover of 5 digits per year, not more. You know those the have a proper job ...

Read their TnC:
You may not use our Services ...
- for anything that ... does not comply with our content standards ...
- in any way that would locally or internationally evade any applicable taxes or facilitate tax evasion
... exceeds our risk tolerance. ...
 
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#19
busdriver said:
I guess, if the start asking, expect them to close your account in the end regardless. It feels like they are more looking for reason to keep your money for longer and keeping at least some of their reputation. I can imagine even if you would have bullet-proof documents, they will still close your account. I guess they need to de-risk as good as possible, either to make money at all, or to make more money from small non-risk clients. Their risk might be more being ask questions by the authorities, regardless if they have good answers. It's just expensive for them to have to handle those questions at all.
I think TW prefers small residents with a turnover of 5 digits per year, not more. You know those the have a proper job ...

Read their TnC:
You may not use our Services ...
- for anything that ... does not comply with our content standards ...
- in any way that would locally or internationally evade any applicable taxes or facilitate tax evasion
... exceeds our risk tolerance. ...
Click to expand...

I guess same.There was endless questions.Even they asked money which I paid for my brother(real one!) many questions.Reasons of transfers.And when I say I don't want to share more they just blocked account.It was ridiculous..
 
#20
quartz911 said:
I guess same.There was endless questions.Even they asked money which I paid for my brother(real one!) many questions.Reasons of transfers.And when I say I don't want to share more they just blocked account.It was ridiculous..
Click to expand...
Did you lose any money in balance?
 
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