Western Union vs. MoneyGram

Western Union

Figuring out how much you’ll pay to transfer money internationally is tricky. Although most fees start at $5, they can be as much as $100 when paying by credit or debit card for cash pickup in certain countries such as China. But when sending money to high-traffic countries such as Mexico or India, agents offer free transfer options.

MoneyGram

Fees vary depending on how much you’re transferring, how you’re sending it and the country you’re sending it to. Unless you actually initiate a transfer, it’s challenging to find out how much you’ll pay.

For example, to send $1,000 to India, you won’t pay anything in fees for a bank transfer, but you’ll pay $3.99 for a cash pickup. To compare, sending $1,000 to Brazil, once again you pay anything for a bank account to bank account transfer, but you’ll pay $5.99 for a cash pickup. This climbs to $34.99 if you pay by credit card.

Western Union

Depending on the country you’re sending money to, a typical exchange rate markup at Western Union can range between 2% to 4%. If you’re sending a large amount overseas, this means hundreds of dollars straight into Western Union’s coffers.

We’ll use the example of a transfer to euros (EUR):

• If the mid-market rate is 1 USD = 0.93 EUR
• Western Union’s exchange rate might be 1 USD = 0.91 EUR

MoneyGram

MoneyGram also skews exchange rates for a profit. Depending on where you’re sending your money, the exchange rate could be 5% or more above the mid-market rate. Like Western Union, this means hundreds of dollars on a large transfer is diverted to MoneyGram’s pockets.

So if you’re sending money to Europe:

• If the mid-market rate is 1 USD = 0.93 EUR
• MoneyGram’s exchange rate may be 1 USD = 0.91 EUR

Western Union

Delivery speeds vary with transfer options. At an agent location or by phone, your transfer could be delivered in minutes – at higher costs. Your cheapest options could take five days or longer, depending on the country.

MoneyGram

Like Western Union, delivery speed with MoneyGram also varies by transfer option, with cash transfers in person or by phone delivered in minutes, again with higher costs. MoneyGram’s cheaper options take two to four business days.

Western Union

Western Union has an array of transfer options, many of which take advantage of its substantial global network. Customers can choose from the following ways to receive their money:

• Cash (in-store)
• Bank account
• Mobile wallet
• Prepaid card
• Pay your bills

MoneyGram

As an established money transfer provider, MoneyGram utilizes its extensive network of agent locations to provide several options for how your intended recipient can get their money:

• Bank account.
• Cash pickup.
• Debit card.
• Mobile wallet.
• Doorstep delivery.
• Pay your bills.
• Send money to an inmate.

Western Union

With over 500,000 agent locations worldwide in more than 200 countries, Western Union is one of the world’s largest money transfer providers. In terms of how much a customer can send, this will depend on the transfer destination, their transaction history and the type of payment they are making.

MoneyGram

MoneyGram has over 350,000 agent locations in more than 200 countries and territories. It does have limits on how much money customers can send on a daily, weekly, monthly or yearly basis. As these can change due to market conditions, it’s best to check before confirming your transfer.

Western Union

Each of Western Union’s payment options come with their own set of limits, fees and restrictions. You can choose to pay with a credit or debit card, bank account, with cash (in-store) or with a wire transfer.

MoneyGram

If you are making an online money transfer, then you can pay through your bank account, or with a credit or debit card. When making an in-person transfer you can also pay with cash.