Xoom vs Wise: fees, exchange rates, delivery and refund rights

Xoom vs Wise comes down to two different ways of pricing and delivering money: Xoom, a PayPal service, charges a transfer fee that is sometimes zero and earns on a currency conversion spread built into its exchange rate, while Wise starts from the mid-market rate and shows its fee as a separate line. Xoom can also pay out as cash pickup, home delivery, mobile wallet top-ups and bill payments, while Wise’s pages describe deposits to bank accounts and, in some countries, e-wallets.

If your recipient needs cash in hand or a bill paid, Xoom offers that and Wise’s pages do not. If your recipient has a bank account and you want the conversion priced against the mid-market rate, Wise is built around that. For any single transfer, compare the total your recipient gets for the same dollars, quoted on both sites on the same day. This is general consumer information, not financial or legal advice.

Xoom vs Wise at a glance

How Xoom charges: transfer fee plus an exchange-rate spread

Xoom’s help article on fees says its transfer fees vary with the transaction type, your payment method and the currency you pay with, the amount, the destination country and the currency the recipient receives. On the currency side, the same article says: “Our exchange rate includes a currency conversion spread.” The Xoom User Agreement explains how that works: Xoom and its service providers “usually make money based on the difference between the exchange rate at which we buy foreign currency and the exchange rate provided to you.” The footer of Xoom’s country pages puts it plainly: “In addition to transaction fees, Xoom makes money when it changes your send currency into a different currency.”

That matters when a transfer shows a $0 fee. Xoom publishes a page titled How to pay zero Xoom transfer fees, which lists the combinations of amount, payment method and payout type that carry no transfer fee. For USD transfers to Mexico, for example, it lists any amount paid from a PayPal balance to a bank account, debit card or mobile wallet, and $6,000 or more paid by bank account or debit card to a bank account. For the Philippines it lists $250 to $5,999.99 paid by bank account to a bank account, and less than $2,000 paid by bank account to a mobile wallet, among others. A zero fee still leaves the exchange rate, so the amount your recipient gets is the number to compare.

Xoom’s fees also change. On its Policy Updates page, Xoom posted a notice issued October 12, 2026 that changes certain US fees to the Philippines effective November 3, 2026. The notice gives fees as a percentage of the USD amount sent. A few rows from that table:

In that table, bank or PayPal balance funding is cheapest, credit cards cost the most, and cash pickup and home delivery cost more than deposits. Xoom says its fee calculator will show the specific fee once the change takes effect.

How Wise charges: mid-market rate plus a fee you can see

Wise’s US pricing page says: “We only use the live mid-market rate, and a small, upfront fee to cover our costs.” Its US Customer Agreement (last updated September 25, 2026) adds a caveat: the rate is “usually the mid-market exchange rate,” and “for some currencies, we do not use the mid-market exchange rate, including where we are required by law to use a different reference rate.” In those cases Wise says it tells you the rate when you set up the conversion.

The fee itself has parts. Wise’s US Long Form Disclosure (September 2026) lists:

• A currency conversion fee “From 0.22% - 4.42%”, depending on the currencies involved.
• A payment method fee on top of that: 0.17% for ACH direct debit, $6.11 for a domestic wire, 0.19% to 7.80% for a debit card, and 0.67% to 7.80% for a credit card.
• A “Variable Volatility Fee” of 0 to 10%, which the disclosure says is “assessed in the event of exchange rate volatility.” The Customer Agreement says Wise will tell you if this fee applies when you set up the order.

Wise also gives a discount once you send more than 25,000 USD (or the equivalent) in a month, according to its pricing page, applied automatically and reset on the first of the month.

Here is how those parts showed up in a real quote. On October 26, 2026, Wise’s send money to Mexico page showed a rate of 1 USD = 18.6209 MXN and these total costs for sending 1,000 USD:

Quotes change with the market and with Wise’s pricing, so treat these as an illustration of the gap between payment methods, not today’s price.

Wise also runs time-limited pricing. Its Flat Fee Offer terms set a flat fee of USD $2.99 per transfer from USD to Philippine pesos for amounts of USD 500 or less paid by domestic debit card or ACH direct debit, from September 22, 2026 to December 14, 2026. The terms note that the flat fee “may be higher or lower than the fee that would otherwise apply” and that it does not change the exchange rate.

Comparing the real cost of Xoom vs Wise

Because Xoom puts part of its price in the rate and Wise puts most of it in the fee, comparing fees alone can mislead you. Instead, quote the exact amount, destination, payment method and payout type you will use on both services at the same time, note the fee, the exchange rate and the total to recipient, and check the rate against the mid-market rate for that moment. The service that delivers more local currency for the same dollars is cheaper for that transfer.

Federal rules help here. Under the Consumer Financial Protection Bureau’s Remittance Transfer Rule, 12 CFR 1005.31 requires providers to disclose the “Transfer Amount,” the “Transfer Fees” and “Transfer Taxes,” the “Exchange Rate” and the “Total to Recipient” before you pay, along with the date funds will be available. Both Xoom and Wise show these figures before you confirm, so you can line them up side by side.

Paying by bank, debit card or credit card

The way you fund the transfer often moves the price more than the choice of provider.

Bank account. Both services pull from a US bank account by ACH. Xoom’s User Agreement says each time you use your bank account, you authorize Xoom to debit it electronically by ACH, and it warns that if the transfer exceeds your balance “you could incur overdraft fees.” Xoom’s help center also says that “for some higher-value transfers, we may wait for your payment to arrive from your bank account, which may take 2–3 extra business days.” Wise’s ACH help article says money usually takes up to 4 business days to reach Wise, and the guaranteed rate is secured once you have authorized the payment.

Debit card. Both accept debit cards. In Xoom’s November 2026 Philippines table, debit card funding costs more than bank funding for most payout types. Wise’s disclosure puts its debit card fee between 0.19% and 7.80%.

Credit card. Expect the highest cost. Xoom’s help center says “your card issuer may charge a cash advance fee in addition to Xoom’s transaction fee,” and its User Agreement adds that the issuer may charge “a cash advance fee and interest.” Wise’s help article on extra charges explains why: Wise passes a merchant category code to your bank, and “it’s always 4829 or 6012, which indicates that your payment is a ‘wire’ or ‘money order’.” Some banks treat that as a cash advance. Wise says it does not accept American Express or Discover cards, and its USD transfer guide says you cannot pay by debit or credit card if your account address is in Nevada, American Samoa or the Mariana Islands.

Cash and checks. Neither takes them. Wise’s help center says “We can’t accept any cash payments” and it does not accept checks. Xoom says on its country pages that it does not accept cash. This also means the new 1% federal remittance tax does not reach a typical transfer on either service: the IRS says the tax, which began January 1, 2026, applies when the sender provides “cash, a money order, a cashier’s check, or other similar physical instrument.” Xoom states directly that its transfers are not subject to it.

Delivery options: where the money can land

This is where the two services differ most.

Xoom lists several payout types on its country pages. For Mexico, it offers bank deposits to major banks, mobile wallets such as Mercado Pago and Spin by OXXO, and cash pickup at locations including Oxxo, Elektra and BanCoppel. For the Philippines, it lists cash pickup at Cebuana Lhuillier and M. Lhuillier, bank deposits, wallets including GCash, PayMaya and GrabPay, door-to-door delivery through Signed and Delivered, and deposits made by entering the recipient’s debit card number, available to US senders. Xoom’s bill pay page says you can pay electricity, internet and other home bills abroad, and it also sells mobile phone reloads.

Wise sends to bank accounts and Wise accounts. Its e-wallet page says it supports payments to e-wallets in some countries, “including bKash, M-PAiSA, M-PESA and more,” and its PHP guide lists GCash, Maya, GrabPay and several other wallets in the Philippines. Cash pickup, home delivery and bill payments do not appear among the payout options on the Wise pages cited in this guide.

If your recipient has no bank account or wallet, Xoom is the one of these two that can reach them.

How long Xoom vs Wise transfers take

Both services give a delivery date or estimate before you pay, and the federal rule requires a “Date Available” on the disclosure.

Xoom says on its country pages that “Funds will be delivered by the date listed on your transaction receipt and frequently within minutes.” For Mexico, it says cash pickup is “typically available in minutes,” wallet transfers are “typically completed in minutes,” and bank deposits are typically available “within 15 minutes during recipient bank processing hours.” For the Philippines, door-to-door delivery typically reaches Metro Manila “in 6 hours or less” if sent before 3 p.m., and takes “1 to 2 days to most provinces.” Xoom lists reasons for delays including identity and payment reviews, partner hours, time zones and bank holidays.

Wise says on its Mexico page that “77% of transfers arrive in under 20 seconds, and 95% in less than a day,” and that “How long it takes depends on how you pay.” For a 1,000 USD transfer to Mexico on October 26, 2026, the page estimated arrival “in seconds” for direct debit, “in 55 minutes” for a bank transfer and “in 30 minutes” for card payments. Wise’s USD guide gives the time for your payment to reach Wise as 0 to 4 working days for ACH, same day or next day for a wire, and 0 to 30 minutes for a card, and says conversion “can take up to 2 working days.”

Sending limits

Xoom uses three levels for US residents, according to its help article on sending limits:

Payout partners can set lower caps. Xoom’s help center says that for bank deposits to most banks in Mexico there is “a 999.99 USD limit per transaction and a 5,000 USD limit per month,” and $2,800 per transaction for Banorte. Xoom also limits how much one person can receive from all senders: from US senders, $15,000 per 24 hours for recipients of Level 1 and 2 senders.

Wise sets limits by payment method. Its USD guide lists, for personal accounts in its licensed states: $1,000,000 per transfer; $50,000 per 24 hours by ACH, with $50,000 to $250,000 over 60 days depending on the account; and $2,000 per 24 hours and $8,000 per 7 days by debit or credit card. Different limits apply to account addresses in Nevada, American Samoa and the Mariana Islands. Destination limits also apply: Wise’s PHP guide caps transfers to a mobile wallet such as GCash or Maya at 50,000 PHP each.

Wise’s ceilings are higher for bank-funded transfers, while Xoom’s Level 1 cap of $9,999 over 180 days is the one new Xoom users meet first.

Cancellations, refunds and your Remittance Transfer Rule rights

If you send money abroad from the US through a company like Xoom or Wise, federal law gives you specific rights. The CFPB’s page on remittance rights and the rule text set them out:

• Disclosures before you pay. Fees, taxes, the exchange rate, the amount the recipient will get and the date it will be available.
• 30 minutes to cancel. “After paying, you have up to 30 minutes to cancel the remittance transfer at no charge, unless the transfer has already been picked up or deposited into the recipient’s account.” Under 12 CFR 1005.34, the provider must refund the full amount, including fees, within three business days of your request.
• 180 days to report an error. You have 180 days from the date the money was supposed to be available. The provider generally has 90 days to investigate and must report results within three business days after finishing, according to the CFPB’s page on reporting a mistake. Errors include the wrong amount and money not made available by the disclosed date, under 12 CFR 1005.33.
• Small transfers are excluded. The rule’s definition in 12 CFR 1005.30 leaves out transfer amounts of $15 or less.

What Xoom’s agreement says. “For senders in the United States, you may cancel your Transaction for a full refund within 30 minutes of authorizing your Transaction, unless the funds have already been delivered to the Recipient or Third-Party Service Company.” After that, Xoom says it “generally cannot provide refunds but may be able to do so in limited circumstances.” Refunds go back to the same payment method in the currency you paid with, and the amount is not adjusted for exchange-rate moves. Its help center notes that most reloads and bill payments complete within minutes, so you usually cannot cancel those once authorized. For errors on transfers paid from a bank account or debit card, Xoom’s agreement gives the same 180-day window. If you think a credit card transfer was not authorized, it says you may also contact your card issuer. Xoom also advertises a money-back guarantee: “We guarantee that your money will be received to the account you designate, or we’ll refund your transaction in full.”

What Wise’s agreement says. Section 20.14 of the US Customer Agreement: “You may cancel your Remittance Money Transfer orally or in writing within thirty (30) minutes after making payment as long as the funds have not already been picked up or deposited into an account of the designated recipient.” Wise says it will refund within three business days in that case. For international transfers over $15, it asks you to report errors “no later than 180 days of the date we told you the money would be available to the recipient.” Wise’s help center gives refund times after a cancellation of 2 to 10 working days for card payments and 0 to 3 working days for ACH debits.

The CFPB enforces these rules. On January 30, 2025, it issued an order against Wise US Inc. that included failures to provide required disclosures and follow error resolution rules; an amended order on May 15, 2025 requires about $450,000 in consumer redress and a $44,955 civil money penalty. With any provider, keep your receipt, note the date available, and report problems well inside the 180 days.

When Xoom fits and when Wise fits

Xoom tends to fit when:

• Your recipient needs cash pickup, home delivery or a mobile wallet top-up in a country Xoom serves.
• You want to pay a family member’s utility bill or reload their phone from the US.
• You already keep money in PayPal, since several of Xoom’s zero-fee combinations use a PayPal balance.

Wise tends to fit when:

• Your recipient has a bank account, or a supported e-wallet, and you want the conversion priced against the mid-market rate with the fee shown separately.
• You can pay by ACH direct debit, which carries the lowest payment method fee in Wise’s disclosure.
• You are moving larger sums, where Wise’s per-transfer ceiling and its discount above 25,000 USD a month apply.

Either way: check with your card issuer before funding with a credit card, and compare the total to recipient, not the fee. For large transfers or tax questions, talk to a qualified professional.

How we checked this

We read Xoom’s User Agreement, policy updates, fee and zero-fee pages, country pages and help center articles, and Wise’s US pricing page, Long Form Disclosure, US Customer Agreement, country send pages and help center articles. We checked federal rights against the CFPB’s Regulation E remittance rule text, its Ask CFPB answers and its enforcement record, and the remittance tax against an IRS news release. Facts checked on October 26, 2026.