MoneyGram vs. Western Union: An Overview
In a world filled with ATMs, tap-to-pay checkout, and automated bank deposits, MoneyGram and Western Union provide reliable money transfer options for the millions of people without access to a bank account or online wallet. Both services also offer banking services such as money orders and bill payments.
In the United States and Canada, many customers are recent immigrants who regularly send money to family members in their home countries. Outside the U.S., it is even easier to find a nearby MoneyGram (MGI) or Western Union (WU) agent. Cash remains king in many places, and access to banking services can be limited in developing nations.
International money transfer services can be a lifesaver in unexpected situations. While MoneyGram and Western Union differ in fees, speeds, and location availability, both have tens of thousands of agents around the world.
Key Takeaways
- MoneyGram and Western Union are leading providers of domestic and international money transfer services.
- Prices vary based on the sender’s and recipient’s locations, funding sources, and delivery methods.
- Use fee calculators on the companies’ websites to determine the exact cost based on your transaction specifics.
Western Union
Western Union is the larger of the two companies and has instant name recognition around the world, thanks to its historic role in the telegraph business. The company stopped offering telegrams in 2006, but it had moved on to new ventures by then. Western Union has about 500,000 agent locations in over 200 countries and territories around the world. Customers can send money by phone, through the Western Union website, or in person.
Western Union Fees
Fees vary widely based on multiple factors, including the payment method used, delivery speed, and the sender and recipient’s location. The exchange rate adds another layer of complexity to the cost of international transfers.
As of October 2024, a $200 domestic transfer funded with cash and paid out in cash, costs $13.50. The same transfer from an online bank account paid out in cash incurs no charge, while using a credit card to send money has a $5 charge. Transfers funded with a debit card or Google Pay also have no added fees.
Western Union’s international transfer fees fluctuate. For example, sending $500 from the United States to Mexico, funded online and received in cash in Mexican pesos has a $4.99 fee when using a debit card, Google Pay, or from a bank account. The company also makes money on the exchange rate offered. The same transfer funded with cash with a Western Union agent would cost $8, or $11.99 if funded with a credit card. Sending the same amount to Ireland for pickup in euros in cash would be $5 to $7 for online bank account transfers, Google Pay, or for a debit card; $12.50 for a credit card; and $8 if sending cash through an agent. For China, fees on a $500 transfer ranged from the same $8 for cash paid to an agent to $12.50 for a transfer funded with a credit card and received in cash.
Western Union Transfer Speed and Cash Limits
Transfer speeds depend on the service type chosen by the sender. Cash is subject to availability. Money could be available at an agent’s location in a few minutes or by the next day. Transfers to mobile wallets can also be nearly instant, assuming availability. Direct-to-bank deposits can take up to seven business days, and bill payments depend on the speed selected at checkout and the merchant. You can track the status of your transfer online. Note delays may occur if transfers are set up after business hours, over the weekend, or on a holiday.
In the United States, unverified accounts can send up to $3,000. Verified accounts can send up to $50,000. Western Union supports 130 currencies nationwide with hundreds of thousands of locations.
MoneyGram
MoneyGram is Western Union’s biggest competitor with operations in over 200 countries and territories. As of 2024, it had more than 430,000 payment locations worldwide and is well-regarded for its international money transfers. . Customers can transfer money in person, online or directly from their bank account in select locations.
MoneyGram Fees
As of October 2024, MoneyGram charges $2.99 for a $200 U.S. domestic transfer funded online with a debit card. To send $500 to Mexico funded online with a debit card, the transfer fee is $1.99, while a credit card incurs a fee of $20.49, and cash paid at an agent location costs $10. For the same transfer to Ireland for pickup in cash in euros, the fees are $1.99 if funded online with a debit card, $20.49 by credit card, and $8 in cash paid to an agent.
MoneyGram’s online fee estimator offered only China transfers to WeChat or a bank account, with fees ranging from $0 for debit card transfers to $15 for credit card transfers.
In April 2022, the U.S. Consumer Financial Protection Bureau (CFPB) and New York’s attorney general sued MoneyGram, alleging it unnecessarily delayed transfers, failed to train employees to resolve disputes in compliance with federal law and failed to develop and document policies and procedures. MoneyGram called the suit “meritless” and said it would fight it. As of 2024, the litigation remains pending.
MoneyGram Transfer Speed and Cash Limits
MoneyGram’s delivery speed depends on the method of payment and delivery method selected. Sending directly to a bank account or mobile wallet is typically quick, with most transfers completed in a few hours. Availability depends on the destination country. If you’d like the receiver to pick up cash at an agent location, it’s usually ready within minutes, subject to operated hours and availability. Like Western Union, MoneyGram allows you to track the status of your transfer online with potential delay if transfers are processed after business hours, over the weekend, or on a holiday.
With MoneyGram, you can send up to $10,000 every 30 calendar days to most countries. MoneyGram supports over 135 currencies, including some cryptocurrencies.
Special Considerations
One drawback of sending cash through these services is that the stores have specific business hours. You may have wait until morning before your family can send you that emergency cash.
Important
The biggest drawback of any money-transfer service is its customers’ vulnerability to fraud.
A request from a stranger for payment via cash transfer is often a sign of fraud. Since the recipient is untraceable, it is the modern equivalent of stuffing a wad of unmarked bills into an envelope and leaving it in a public place on instructions from a stranger.
Is MoneyGram cheaper than Western Union?
Transfer fees vary depending on several factors, including payment method, destination country, and transfer speed. Generally, MoneyGram’s fees are cheaper than those of Western Union. It’s important to compare total costs, including exchange rates, to ensure you get the best deal.
Who is safer, Western Union or MoneyGram?
Western Union and MoneyGram are both safe money transfer services. Both companies have fraud protection with a money-back guarantee, encryption for user data and transactions, and monitoring for suspicious activity.
Where Can I Transfer Money Without a Fee?
Transferring money domestically without a fee is possible through bank transfers or digital payment apps such as PayPal, Cash App, and Venmo, assuming both parties have bank accounts. If either the recipient or the sender lacks a bank account, Western Union and MoneyGram are secure money-transferring services to utilize. Fees will vary depending on the destination country, payment method, and amount.
The Bottom Line
Western Union and MoneyGram are two of the largest money transfer services worldwide. They both operate in over 200 countries and territories, with MoneyGram supporting slightly more currencies than Western Union.
Receivers can collect their funds within minutes or as long as seven business days. Transfer speeds depend on payment methods and destination countries. While Western Union’s fees are slightly higher, costs ultimately depend on payment methods, transfer speeds, and destination.
Western Union and MoneyGram accept several payment methods, including bank accounts, credit cards, debit cards, and cash.
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