IOF — Tax on Operations of Credit, Exchange and Insurance — is a tax applied on different types of financial transactions in Brazil. The tax rate varies according to what you’re doing.
When using the Wise card, the IOF is charged during the conversion, not the purchase. That’s why the rate is different from other international cards. The rates for converting are:
Using BRL to add other currencies to your Wise account — this is like sending money from Brazil to an account you own abroad. 1.1% IOF
Converting between BRL and other currencies in your Wise account — this is like sending money from Brazil to an account you own abroad. 1.1% IOF
Converting money from other currencies to your Wise BRL account — this is like sending money from abroad to yourself in Brazil. 0.38% IOF