By kb070 
Key Takeaways
- Wise (formerly TransferWise) supports businesses operating under a “Doing Business As” (DBA) name, allowing them to manage international financial transactions smoothly.
- Businesses can benefit from Wise’s low fees, mid-market exchange rates, and multi-currency account features, enabling cost-effective global payments.
- To use Wise with a DBA, businesses must provide registration documents, verify the legal name and DBA name, and link a corresponding business bank account.
- Wise’s limitations include lack of credit facilities, restricted cash handling, and regional availability, making it important to evaluate if it suits your business needs.
- Alternatives to Wise, such as Payoneer, Revolut Business, PayPal, and Stripe, offer additional features like marketplace payments, spending controls, or credit card processing, depending on your business requirements.
- Choosing the right financial platform involves assessing fees, transaction needs, compatibility with regional laws, and scalability to enhance business operations.
Running a business often means navigating the complexities of financial transactions, especially when dealing internationally. If you’re operating under a “doing business as” (DBA) name, you might wonder if platforms like TransferWise (now Wise) can accommodate your needs. After all, finding a reliable and cost-effective solution for sending and receiving payments is crucial for smooth operations.
I’ve explored how Wise works for businesses and whether it supports DBAs. It’s important to understand how their system handles business accounts and what it means for entrepreneurs like us. Whether you’re managing cross-border payments or simply trying to streamline your financial processes, knowing your options can make all the difference.
What Is TransferWise And How Does It Work?
TransferWise, now known as Wise, is a digital platform for international money transfers. It focuses on providing businesses and individuals with fast, low-cost, and transparent cross-border payment solutions. The platform handles multi-currency transactions by eliminating traditional banking fees and using mid-market exchange rates.
I use Wise by setting up an account, verifying my identity, and linking a bank account. Once verified, I select the currency, enter the recipient details, and fund the transaction. Wise completes the transfer by converting the money at a real exchange rate and moving it locally within the destination country, reducing costs and time.
Wise also supports businesses, offering multi-currency accounts that help manage transactions in over 50 currencies. For example, I can send payments to suppliers in euros, get paid by clients in U.S. dollars, and hold funds in British pounds, all in one account. Additionally, Wise for business integrates with tools like Xero, simplifying bookkeeping.
Using TransferWise For Business
TransferWise, now Wise, offers a streamlined platform for managing international business payments. It supports businesses operating with DBA names, making cross-border transactions efficient and cost-effective.
Benefits Of TransferWise For Business Transactions
- Low Fees
Wise provides international money transfers at significantly lower fees compared to traditional banks. For example, businesses can save up to 90% on wire transfer costs by using Wise.
- Mid-Market Exchange Rates
Wise uses the real mid-market exchange rate, ensuring businesses don’t lose money on marked-up currency rates common with banks.
- Multi-Currency Accounts
Businesses can hold, receive, and send money in more than 50 currencies, enabling seamless global transactions. For instance, a business operating in the US can invoice clients in GBP while paying suppliers in EUR.
- Integration With Accounting Tools
Wise integrates with platforms like Xero, simplifying bookkeeping by synchronizing transactions and offering automated reconciliation.
- Fast Transactions
Transfers on Wise are processed quickly, with most payments completed within 1-2 business days.
Limitations To Consider
- Limited Support For Cash
Wise operates digitally, so businesses dealing with cash transactions must use alternative methods to deposit or withdraw physical money.
- Account Type Restrictions
Only businesses fulfilling Wise’s eligibility criteria, such as a verifiable DBA name and legal documentation, can open a Wise business account.
- No Credit Facilities
Wise doesn’t provide credit services, which may limit financial options for businesses requiring loans or overdrafts.
- Geographic Limitations
Wise services aren’t available in every country, so businesses operating in unsupported regions must explore other platforms for payments.
Can I Use TransferWise Doing Business As (DBA)?
Yes, businesses operating under a “Doing Business As” (DBA) name can use Wise (formerly TransferWise) to manage payments. Wise enables businesses with DBAs to access multi-currency accounts, send payments globally, and simplify bookkeeping with tools like Xero.
Requirements For Using TransferWise With A DBA
- Business Registration Documentation
A DBA must provide valid registration documents, such as a trade name registration certificate, depending on the jurisdiction where the business operates.
- Legal Business Name Verification
Wise requires both the legal business name and the DBA name to be verified during account setup. This ensures compliance with regulatory standards.
- Linked Business Bank Account
The DBA need to connect a business bank account matching either the legal or DBA name. This ensures smooth fund transfers.
- Identity Verification
Individuals associated with the DBA must complete personal identity checks. Accepted documents include passports or government-issued IDs.
- Eligible Countries
Wise supports DBAs from specific countries. Verification may be denied if the business is located in an unsupported jurisdiction.
Steps To Set Up TransferWise As A DBA
- Create A Wise Business Account
Visit the Wise website and choose the business account option. Provide the requested details for both the DBA and legal business name.
- Upload Registration Documents
Submit DBA registration documents during the onboarding process. Wise uses these to verify the DBA’s legitimacy.
- Link A Business Bank Account
Integrate a business account directly tied to the submitted legal or DBA name to facilitate transactions.
- Complete Identity Checks
Upload identification documents for all required individuals, including beneficial owners and relevant officers.
- Activate Multi-Currency Services
Once validated, access multi-currency features, receive unique international bank details, and initiate global transactions under the DBA name.
Alternatives To TransferWise For Businesses
Exploring other platforms helps businesses identify tailored solutions for financial management. Various services offer unique features, pricing, and benefits that may align better with specific requirements.
Comparing Features With Other Platforms
Analyzing competitors reveals key differences in fees, transaction limits, and supported currencies. Payoneer, for example, offers similar cross-border payments but adds the option for receiving payments directly from marketplaces like Amazon and clients through billing services. Revolut Business integrates spending controls with its multi-currency accounts, making it suitable for budget management. On the other hand, PayPal provides wide acceptance and invoicing features but typically charges higher fees for international transfers compared to Wise.
Stripe primarily serves as a payment processor but supports multi-currency payouts, ideal for businesses needing credit card payment solutions. OFX focuses on large-scale currency transfers, offering competitive rates for businesses managing high-value transactions. Each platform serves distinct market needs, varying in usability, integration tools, and regional availability.
Choosing The Right Option For Your Business
Selecting a suitable platform depends on your business’s size, transaction frequency, and international reach. For e-commerce businesses, Payoneer’s marketplace integrations simplify payment collection. Companies managing high-value cross-border payments might find OFX beneficial due to its reduced fees for large transactions. Those requiring comprehensive financial tools may prefer Revolut Business for its expense tracking and analytics.
Freelancers and small businesses valuing simplicity often opt for Wise or PayPal. Stripe fits entities needing seamless billing and payment acceptance. Evaluate customer support, compliance with regional laws, and scalability when making your decision. A tailored platform optimizes operations and adds value to financial processes.
Conclusion
Choosing the right financial platform is crucial for businesses, especially those operating under a DBA name. Wise offers a powerful solution for managing international payments with transparency, low fees, and multi-currency support. While it has some limitations, its benefits often outweigh the drawbacks for many businesses.
Exploring alternatives like Payoneer, Revolut, or PayPal can also help you find a platform that aligns with your specific needs. By evaluating features, costs, and scalability, you can streamline your financial operations and focus on growing your business effectively.
Frequently Asked Questions
What is Wise, and how does it benefit businesses?
Wise (formerly TransferWise) is a digital platform for fast, low-cost international money transfers. It benefits businesses by offering multi-currency accounts, reduced fees (up to 90% cheaper than banks), and real mid-market exchange rates. Businesses can send, receive, and hold money in over 50 currencies, simplifying cross-border transactions.
Can businesses operating under a DBA use Wise?
Yes, Wise supports businesses using a “doing business as” (DBA) name. However, businesses must provide specific documentation, such as proof of the DBA name registration, to set up a Wise business account.
What are the key advantages of Wise over traditional banks?
Wise offers significantly lower fees, faster processing times (1-2 business days), and transparency by using mid-market exchange rates. It eliminates hidden fees and offers reliable multi-currency transactions for businesses.
Are there any alternatives to Wise for business transactions?
Yes, alternatives include Payoneer (great for marketplace payouts), Revolut Business (spending controls), PayPal (widely accepted), Stripe (multi-currency payments), and OFX (competitive rates for large transactions). Each platform suits different business needs.
Is Wise suitable for businesses handling large-scale transactions?
Yes, Wise can handle large-scale transactions cost-effectively. However, businesses with specific needs, such as volume discounts or extensive customer support, may also consider OFX or other specialized platforms.
What are Wise’s limitations for businesses?
Wise does not support cash transactions, offers no credit facilities, and imposes geographic restrictions on unsupported regions. Eligibility criteria may also limit account types for some businesses.
How does Wise ensure transparency in currency conversion?
Wise uses the real mid-market exchange rate, which is the fairest rate available. There are no hidden markups, and all fees are disclosed upfront, ensuring every transfer is transparent.
Can Wise integrate with accounting software?
Yes, Wise integrates with popular accounting tools like Xero, making it easier for businesses to manage bookkeeping and financial records efficiently.
How quickly are transfers processed through Wise?
Most Wise transfers are processed within 1-2 business days, making it faster than traditional banks. Processing speed may vary depending on the destination and payment method.
What factors should businesses consider when choosing Wise or its alternatives?
Businesses should evaluate costs, transaction frequency, international reach, customer support, scalability, and compliance when choosing Wise or any alternative financial platform. Each business has unique needs that must align with the selected solution.