Western Union vs MoneyGram
Discover where to find the best deal on your next overseas transfer.
Neither Western Union nor MoneyGram is the cheapest or fastest option out there – but they are the most visible. Which one is best for you depends on how much you’re transferring and how fast you need the money to arrive.
The fees and rates used in this comparison are accurate as of 14 February 2020.
Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.
Which has lower fees?
Western Union
Figuring out how much you’ll pay to transfer money internationally can be difficult. Although many fees start at $5-$7, they can be tens or even hundreds of dollars when paying by credit or debit card for cash pickup in certain countries.
MoneyGram
Unless you actually initiate a transfer, it’s not easy to find out upfront how much you’ll pay. As an example, to send $1,000 to a bank account in India, you could pay $4.99 in fees if you send online and pay by debit or credit; if you send the same amount at an agent location and pay for it in cash, the transaction fee could rise to $13.
Winner: Tie
There are several factors that affect transaction fees with Western Union and MoneyGram, so there’s no clear winner here.
Let’s crunch the numbers: Sending $950 to Europe online and in person
Julie wants to send money to her daughter in France. She compares the cost of sending $950 online and in person at a local branch, collecting estimates from both Western Union and MoneyGram. (Assume the transfer is for cash pickup and that the fee is deducted from the amount being sent.)
Sending $950 to Europe online
| Western Union | MoneyGram | |
|---|---|---|
| Transfer fee | $29.00 | $4.99 |
| Exchange rate | 1 CAD = 0.6488 EUR | 1 CAD = 0.6759 EUR |
| Transfer speed | Within minutes | Within minutes |
| Total euros received | EUR€175.82 | EUR€199.40 |
| Receiver gets | EUR€23.58 less | EUR€23.58 more |
As you can see, MoneyGram offers better value for money when sending $950 online to Europe. In this case, transferring money online through MoneyGram allows Julie to save around $25 on transfer fees and send an extra €23 to her daughter.
Sending $950 to Europe in person at an agent location
| Western Union | MoneyGram | |
|---|---|---|
| Transfer fee | $7 | $15 |
| Exchange rate | 1 CAD = 0.6488 EUR | 1 CAD = 0.6759 EUR |
| Transfer speed | Within minutes | Within minutes |
| Total euros received | EUR€611.82 | EUR€631.97 |
| Receiver gets | EUR€20.15 less | EUR€20.15 more |
As you can see, the cost of this transaction is quite similar to the previous example. Even though transferring money in person at a local MoneyGram branch will cost Julie $8 extra in transfer fees, its higher exchange rate allows her to send an additional €20 to her daughter.
Note that the results could be different if Julie decides to send a different amount, change her payment method or change the way she wants the money to be received.
Which offers better exchange rates?
To understand who offers better exchange rates, you’ll need to first look at the mid-market rate. This is the true exchange rate that averages the buying and selling rate of a global currency – and the rate banks and transfer services use when they trade among themselves.
Western Union
Depending on the country you’re sending money to, Western Union’s margins on international transfers vary, but can be between 1% and 5%. If you’re sending a large amount overseas, this means hundreds of dollars that goes straight to Western Union.
We’ll use the example of a transfer to Chinese yuan renminbi (CNY):
- If the mid-market rate is 1 CAD = 5.27266 CNY
- Western Union’s exchange rate might be 1 CAD = 5.05960 CNY
MoneyGram
MoneyGram also skews exchange rates for a profit. Depending on where you’re sending your money, MoneyGram’s margin on the exchange rate could be between 0.5% and 10%. Like Western Union, this means hundreds of dollars on a large transfer diverted to MoneyGram’s pockets.
So if you’re sending money to China:
- If the mid-market rate is 1 CAD = 5.27266 CNY
- MoneyGram’s exchange rate may be 1 CAD = 4.9985 CNY
Winner: Tie
Exchange rate margins vary greatly depending on where you’re sending your money, so we couldn’t split Western Union and MoneyGram here.
Which is faster?
Western Union
Delivery speeds vary with transfer options. When you send a cash pickup transfer from an agent location or online, your transfer could be delivered in minutes (but will cost more). However, sending money to a bank account can take up to 5 days, depending on the country.
MoneyGram
Like Western Union, delivery speed with MoneyGram varies by transfer option, with cash transfers in person delivered in minutes (again with higher costs). However, bank deposits are typically processed on the same or next day.
Winner: MoneyGram
There’s no question that these services are similar. Both allow you to send cash to a loved one overseas within minutes, but MoneyGram has shorter processing times for bank deposits than Western Union.
General features
| Payment methods | Receiving options | Maximum and minimum transfers | Transfer speeds | Currencies | |
|---|---|---|---|---|---|
| Western Union | Bank account, credit or debit card, cash | Bank transfer, cash pickup, ewallet | Minimum: $1 Maximum: $50,000 | Same day | 200+ countries |
| MoneyGram | Bank account, credit or debit card, cash | Bank transfer, cash pickup, other options by location | Minimum: $1 Maximum: $13,750 | Within an hour | 190+ countries and 45+ currencies |
Western Union
Western Union is a major player in the world of international transfers and allows you to send funds to more than 200 countries around the world. You can send money online, in person or via a mobile app, and the funds can be deposited into your recipient’s bank account or made available as cash for collection at more than 500,000 locations. To send a transfer online, you’ll need to register for a free account and then provide your recipient’s details and specify the amount you want to send.
MoneyGram
MoneyGram also offers in-person and online transfers, and it boasts almost 350,000 agent locations in more than 190 countries around the world. It allows you to send cash pickup transfers and bank deposits, while home delivery, mobile wallet deposits and loading funds directly onto your recipient’s debit card are also available in some countries. To send a transfer online, register for a free account, specify your payment amount and then enter your recipient’s details.
Bottom line
Western Union and MoneyGram are quite similar. Exchange rates vary greatly between the 2 providers depending on where you’re sending money, so it’s worth getting a quote from each provider for your specific transaction.
MoneyGram offers faster transactions if you’re sending a bank transfer (only available in selected countries). But if it’s more important that your friends or family be able to pick up your money in cash, Western Union’s 500,000 agent locations worldwide beat MoneyGram’s 350,000.
These 2 services aside, you could do better with another money transfer specialist. Compare your options to find a provider that’s perfect for your situation.
Looking for more options?
Input the details of your transaction into the calculator below to compare fees and exchange rates across a range of money transfer services.
Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.
