Wise vs PayPal in Malaysia - Which is better?
Wondering how PayPal vs Wise compares in Malaysia? We compared the exchange rates, fees and features in our in-depth review of the two providers.
This guide will walk through the costs and exchange rates applied when using RHB for an international transfer. We’ll also take a look at Wise as a cheap and convenient alternative if you need to send money abroad.
Let’s start with a cost example comparing RHB and Wise. In this case, we will imagine you’re sending RM10,000 to a euro account.¹
Provider | Transfer time | Fee | Exchange rate | Recipient gets |
---|---|---|---|---|
RHB | 1-5 days | 25.00 MYR | Exchange rate with a markup (1 MYR = 0.200740 EUR) | 2,002.38 EUR |
Wise | 3 hours | 54.56 MYR | Real exchange rate (1 MYR = 0.207376 EUR) | 2,062.45 EUR +60.07 EUR Send money |
(July 8 2020 at 15:16 (GMT+2))
This is a great example of why you need to look at both the upfront fee and the exchange rate used when arranging an international payment.
Here, RHB charges a relatively low fee - but there is a markup added to the exchange rate, which pushes up the overall cost. That means that your recipient would get more if you send your payment using Wise instead.
Here’s how the payment works with both RHB and Wise:
RHB:
Amount converted: 10,000MYR - 25.00 MYR fee = 9,975 MYR
Exchange rate offered: 1 MYR = 0.200740 EUR
Recipient gets: 9,975 * 0.200740 = 2002.38 EUR
Wise:
Amount converted: 10,000MYR - 54.56 MYR fee = 9,945.44 MYR
Exchange rate offered: 1 MYR = 0.207376 EUR
Recipient gets: 9,945.44 * 0.207376 = 2062.45 EUR
Make sure that you check exchange rates, not just transfer fees, when you do an international transfer - or you could end up paying more than you need to in fees.
Send money abroad up to 4x cheaper than banks🚀
The RHB exchange rate for a foreign telegraphic transfer is listed as the Bank Sell TT Rate. ² Bank selling rates are typically calculated by taking the mid-market rate, and adding a markup or margin. This markup is essentially an extra fee for the customer, and another slice of profit for the bank.
Compare the exchange rates used by your bank with the mid-market exchange rate that’s available on Google, to see this in action.
As well as any markup added to the exchange rate used, you’ll pay a fee for your transfer with RHB. Here’s what you need to know:³
Service | RHB Fee |
---|---|
Payment less than RM5,000 or currency equivalent | RM2 + SWIFT fees RM25 + possible exchange rate markup |
Payment over RM5,000 or currency equivalent | SWIFT fees RM25 + possible exchange rate markup |
Cancellation fee | RM10 + out of pocket expenses |
Receiving an international transfer | RM5 |
With Wise, you can send money to 70+ countries with low, transparent fees and the mid-market exchange rate. Compared to Malaysian banks, it can be up to 4x cheaper to send money abroad with Wise. Most likely much faster as well.
You can also receive money to a Wise multi-currency account from the UK, US, Australia, New Zealand and any Eurozone country, just as if you had a local bank account in those countries. Hold your money in 50+ different currencies, and switch it using the mid-market rate whenever you want to.
To send money with Wise,
And that is it! You can track your transfer in your account and your recipient will also be notified when a transfer reaches them.
Join 8 million customers and enjoy a cheaper, faster and transparent way to send money abroad with the “real” exchange rate.
To make an online foreign telegraphic transfer, you’ll need to do the following:²
If you’d rather make an international transfer in person, you can also visit your local RHB branch or kiosk.
The exact information you’ll need to arrange your international payment with RHB depends on where you’re sending money. You can expect to require information including:
For some destination countries you might also have to give details of the reason for the transfer. You’ll be able to follow the on screen prompts as you set up your transfer, to make sure you give all the details needed.
If you need help, you can call into a local branch of RHB, or get in touch with the customer care team on 03-9206 8118.⁴
RHB customers can arrange international payments online or in person by visiting a branch or kiosk. Before you decide how to set up your international transfer, make sure you check out both the fees and exchange rates being used. Compare the overall costs of your transfer with RHB, against a modern alternative like Wise. Wise uses the mid-market exchange rate with no markup, which can mean you save up to 4x compared with your regular bank in Malaysia.
Join over 8 million people who get the real exchange rate🌏
Sources
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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