FX rates matter because they affect how much money you really receive or send. A small difference in rates can lead to big losses over time. If you’re running a business, bad FX rates can eat into your profits. Good FX rates help you save money, especially when dealing with global customers or paying international workers.
Table of Contents
Table of Contents
How Stripe Handles Foreign Exchange
Stripe handles foreign exchange by converting currencies when needed during payments or payouts. If a customer pays in a currency different from your bank account’s currency, Stripe automatically converts it. You do not need to manage the process yourself. Stripe supports over 135 currencies, which helps businesses accept payments from global customers without extra setup.
The exchange rate Stripe uses includes a small markup. This is usually around one percent added to the mid-market rate. You won’t see this fee separately because it is built into the rate you receive. The actual exchange rate may be higher than what you see on services like Google or XE. Stripe charges this as part of its international processing.
This method makes things simple, especially for businesses that want automation. But it may cost more compared to platforms that offer real exchange rates. If your business handles many international payments, this extra cost could affect your earnings.
How Wise Manages Currency Conversion
Wise manages currency conversion using the real mid-market exchange rate. This is the same rate you see on Google or other financial websites. Wise does not add any markup to the rate. Instead, it charges a clear and separate fee for the service. This makes it more transparent compared to services that include fees inside the exchange rate.
When you send or receive money through Wise, the platform shows you the exact rate and fee before the transaction. You know how much the recipient will get, and there are no hidden charges. This helps businesses and individuals plan better for international payments.
Wise also supports multi-currency accounts. You can hold, send, and receive money in different currencies without converting every time. This is helpful for freelancers, remote teams, and global businesses. It keeps costs low and makes currency handling simple.
FX Rate Transparency
FX rate transparency means knowing exactly how much you are paying when converting one currency to another. It helps you understand if you’re getting a fair deal. For businesses and individuals making international payments, this is important. Hidden charges in the exchange rate can quietly increase your costs.
Wise is very open about its pricing. It uses the mid-market exchange rate, which is the same rate you see on Google. Wise does not hide fees inside the rate. Instead, it shows a clear service fee before you confirm the payment. This makes it easy to see the real cost of the transaction.
Stripe takes a different approach. It includes a small fee within the exchange rate itself, usually about one percent above the mid-market rate. This fee is not shown separately. While this makes the process smooth, it’s harder to know how much you’re really paying for the conversion.
Fees and Hidden Charges Comparison
Stripe adds its foreign exchange fee directly into the exchange rate. This fee is usually around one percent above the mid-market rate. You won’t see this fee listed separately on the dashboard or payout summary. It’s included in the rate you get when converting currencies. While this method is convenient, it lacks visibility and can make cost tracking difficult for businesses managing global payments.
Wise Shows Transparent Fees
Wise clearly displays the real mid-market exchange rate and adds a separate service fee. This fee depends on the currency pair and transfer amount. It’s shown upfront, so you know exactly how much you’re paying before completing the transaction. This level of transparency makes Wise a good choice for users who want control over international transaction costs and dislike hidden charges.
Simplicity vs Transparency
Stripe is built for ease of use and automation. It handles conversion in the background and suits businesses that prioritize speed and integration over cost breakdown. Wise, on the other hand, focuses on transparent pricing. It shows every fee and uses real exchange rates, which can help businesses and freelancers plan better and avoid surprises in their payouts.
Which One Saves You More
In many cases, Wise ends up being more cost-effective, especially for high-volume or frequent international transfers. Stripe’s hidden markup may not seem like much per transaction, but it can become expensive over time. If you value low fees and full pricing clarity, Wise offers better savings. Stripe still works well for convenience, especially if you’re already using it for payments and subscriptions.
Speed and Efficiency of Currency Transfers
Stripe Handles Transfer Speed
Stripe processes currency conversions automatically during payouts. The speed depends on the country and bank you’re sending to. In most cases, payouts take 2 to 7 business days. If a currency conversion is involved, it might take slightly longer. Stripe batches payouts and follows a scheduled payout cycle, which adds to the total time. It’s reliable, but not always the fastest for international transfers.
Wise Offers Faster Transfers
Wise is known for quick currency transfers. In many cases, money arrives within hours or by the next business day. It uses local bank networks in different countries to speed up delivery. Since Wise shows the exact arrival time before you confirm the payment, there are fewer surprises. This speed makes it ideal for time-sensitive payments like payroll or supplier transfers.
Efficiency and User Control
Stripe is efficient if you want automation and don’t mind waiting a few days. It’s best suited for online businesses with scheduled payouts. Wise, on the other hand, gives more control. You can send money on demand, choose currencies, and track the entire process in real time. It’s more flexible for users managing global money movement manually.
Conclusion
Stripe is good for businesses that want everything in one place. It handles payments, conversions, and payouts automatically. But its FX rates include hidden fees, which can add up over time. It’s simple but not always the cheapest for international transfers.
Wise gives better FX rates with clear pricing. You see the real exchange rate and a separate fee. It’s a good choice if you care about cost and transparency. For faster transfers and better control, Wise is the smarter option.
