In the United States, unauthorized payments made through a Wise account are primarily governed by the Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E. If a transaction occurs without your permission--such as through account hacking or a stolen debit card--your financial liability is limited by federal law, provided you report the incident promptly. Wise, as a non-bank financial institution and licensed money transmitter, is required to follow these federal error resolution procedures for consumer accounts.
What Controls the Issue
The primary legal framework for U.S. consumers is Regulation E (12 CFR § 1005), which covers electronic fund transfers (EFTs), including Wise debit card transactions and ACH transfers from linked bank accounts. This regulation defines "unauthorized electronic fund transfers" and sets specific timelines for reporting and investigation.
Internally, the Wise U.S. Terms of Use outline the specific workflow for reporting fraud. While Wise is not a bank, it must adhere to these federal consumer protection standards for its U.S. personal account holders. It is important to distinguish these protections from the Fair Credit Billing Act (FCBA), which applies only to credit cards, and from international rules like the UK’s Financial Ombudsman Service, which do not apply to U.S. residents.
Consumer Liability Limits
Under Regulation E, your maximum liability for unauthorized transfers depends on how quickly you notify Wise after discovering the loss or theft of your account access (such as your phone, password, or debit card).
| Reporting Timeline | Maximum Consumer Liability |
|---|---|
| Within 2 business days of discovery | Lesser of $50 or the total unauthorized amount |
| More than 2 business days, but within 60 days of statement | Up to $500 |
| More than 60 days after the statement is sent | Unlimited liability for transfers occurring after the 60-day mark |
These protections apply specifically to "unauthorized" transactions where you did not grant permission. They generally do not apply to "authorized push payment" scams, where a user is tricked into sending money themselves.
The Dispute and Investigation Process
Once you report an unauthorized transaction, Wise is required to investigate the error. According to CFPB Regulation E guidelines, the institution must generally complete its investigation within 10 business days.
If the investigation requires more time, Wise may take up to 45 days (or 90 days for new accounts or foreign transactions), but they typically must provide "provisional credit" to your account for the amount in dispute while the investigation continues. If they determine no error occurred, they may revoke this credit after providing written notice.
Practical Steps to Dispute a Payment
If you notice an unauthorized transaction on your Wise account, take the following steps immediately:
- Freeze your card or account: Use the Wise app to instantly freeze your debit card or change your login credentials to prevent further transfers.
- Submit a formal report: Use the "Report a problem" or "Dispute" button within the specific transaction details in the Wise app or website.
- Gather evidence: Keep a record of the transaction ID, the date you discovered the unauthorized activity, and any evidence that your device or credentials were compromised.
- Monitor your linked accounts: If the unauthorized transfer originated from a linked U.S. bank account via ACH, notify that bank immediately as well.
Escalation Path for U.S. Consumers
If Wise denies your dispute or fails to follow the Regulation E investigation timelines, you have several escalation options:
- Wise Formal Complaint: Follow the "How do I make a complaint?" process on the Wise Help Centre to trigger an internal review.
- Consumer Financial Protection Bureau (CFPB): You can file a formal complaint with the CFPB if the institution fails to resolve the error according to federal law.
- State Regulators: Contact the banking or financial services regulator in your specific state, as Wise is licensed as a money transmitter at the state level.
FAQ
Is Wise a bank? No, Wise is a non-bank financial institution and a licensed money transmitter. While it provides bank-like features, it is regulated differently than a traditional bank, though it must still comply with NCUA and CFPB guidance regarding electronic fund transfers.
Can I get a refund if I was scammed into sending money? Regulation E protections for "unauthorized" transfers typically do not cover "authorized" transfers where you were deceived into sending the money yourself. In those cases, a refund depends on Wise's ability to recover the funds from the recipient's bank, which is often difficult.
How long does Wise have to resolve my dispute? The initial investigation period is usually 10 business days. If they need more time, they can extend it up to 45 or 90 days, but they must generally provide provisional credit for the disputed amount during the extended period.