If you have ever tried paying an American credit card from Canada through a Canadian bank, you know the turmoil surrounding conversion of the money from Canadian to US$; or, the greater obstacle to locate a bank to which you might first transfer the money from Canada before directing the payment of the credit card from that new account. Perhaps I have complicated the process; but I believe the general rule is that you need a separate US account (let’s call it an “American” account) to which to cycle American money to pay an American credit card.

Basically the issue is cross-border payments between separate countries using different currencies.

A “Wise Multi-Currency Account” is a digital financial account designed to bypass expensive traditional banking networks by letting individuals and businesses hold, send, spend, and receive multiple currencies at a fraction of the usual cost. It acts like a borderless financial hub, allowing you to manage money globally through a single app.

Initially my interest in this subject was confined to the dilemma arising from inadvertently having used an American credit card to pay my local coffee bills. This financial indiscretion arose because a scam attempt on my existing Canadian credit card. When I removed that card (as instructed by the bank) my Wallet APP retained a record of a Canadian debit card and the American credit card, neither of which I regularly use.  When I attempted to use the Canadian debit card, I mistakenly used the American credit card.  And now we’re having to deal with the minor – but irritating – fallout.

We have considered the possibility of opening an American bank account (we had one previously but closed it with COVID); however, the popular discussion suggests that banks overcharge for the transfer/exchange of money. Additionally the WISE® bank account is useful when having to trade currencies other than Canadian or American.  If one were disposed to travel abroad regularly, my suspicion is that having a WISE® account at hand is a convenience. We seldom have need of cash because we use the credit/debit cards for payments.  Accordingly the scope of the American account is in/out only; namely, spend then pay.