Moneygram vs Western Union

Moneygram’s fee structure is dependent on a number of factors, including:

• The location you are sending funds to

• The type of payment you opt for

• The amount you are sending

• Whether you are sending in a single or multiple currencies

As an example, let’s look at the fees for a couple of examples.

If you were to send $200 to Singapore, the fees would be $4.99 for a cash pickup paid for by debit or credit card or by bank transfer. Paying by cash at an agent location, however, returns a ‘fees variable’ note on the Moneygram website, so it’s unclear whether you would pay more or less in person.

As another example, sending $500 to Australia would have a fee of $4.99 for a cash pickup paid for by an online bank account, while paying with your credit or debit card would incur a fee of $9.99.

Western Union equally has a fee structure that can change depending on:

• The currency pair you are transferring between

• The sum you are sending

• Your payment method

• Your payout method

Using the same example as with MoneyGram, we can see an example of the fees:

Sending $200 to Singapore would have fees between $0 (for a bank transfer to a bank account), up to $12.00 (for a cash pickup paid for by credit card). Other options include a cash pickup by debit card or bank transfer, which would incur a fee of $5, or fees of $9.99 (credit card) or $2.99 (debit card) when paying for a transfer to be received in the recipient’s bank account.

Equally, sending $500 to Australia has a number of different fees depending on your payment choices. Payment by bank account to the recipient’s bank account has no fees attached (although this is the slowest method), whilst a credit or debit card payment for a bank deposit would have fees of $17.49 or $2.99 respectively. A cash pickup would have fees of $21.50 (credit card payment), $7.00 (debit card), or $5.00 (bank account).

Similarly to fees, the exchange rate margins MoneyGram charges really depends on the currency pair you are transferring between, as well as other variables such as the amount you are sending.

Typically, the provider charges relatively high exchange rate margins compared to other money transfer providers. If you were sending from GBP to EUR, for example, you could expect to be charged around 5.05% above the mid-market rate, while sending to AUD would have margins about 4.23% above the mid-market rate.

Western Union’s exchange rate margin can also vary depending on the currency pair and whether you are making an online or agent transfer.

Typically, the provider is also known for charging relatively high margins compared to other providers. Sending money as a cash pickup can have far higher margins than a bank transfer, for example, while a larger sum can have a higher rate than smaller amounts.

MoneyGram supports international transfers to over 200 countries around the globe, with over 70 of those countries now digitally enabled for more convenient transfer options. Additionally, MoneyGram has around 350,000 agent locations worldwide.

Western Union supports international transfers to over 200 countries in 130 currencies, with over 500,000 agent locations worldwide.

Money sent with MoneyGram is typically ready for cash pickup within minutes after the transfer has been successfully completed. When using a bank account to pay for your transfer (often the most cost-effective method), your transfer can take up to 5 working days, which is fairly typical for bank transfers.

Likewise, Western Union transfers are processed within minutes for cash pickups, but can also take up to 7 working days for bank transfers (again, often the transfer method with the lowest fees).

MoneyGram allows you to pay for online transfers using a bank account (US only) or with a credit or debit card. You can also pay for your transfer by cash if visiting an agent location directly.

Transfer options are dependent on the country you are sending to. Where allowed, you can decide to transfer the funds to your recipient’s bank account, mobile wallet, prepaid card, or organise a cash pickup.

Western Union allows you to pay for online transfers using your bank account, credit or debit card, or with a cash payment at an agent location.

Transfer options include bank transfers, cash pickups, and mobile wallet deposits.

MoneyGram UK has over 1,400 reviews on Trustpilot with an overall ‘Great’ rating of 4.2 out of 5. The US version, MoneyGram US, has over 3,800 reviews on Trustpilot with an overall ‘Great’ rating of 4 out of 5.

Amongst the positive reviews, MoneyGram is praised for its:

• Affordability

• Fast transfer times

• Convenience

• Good customer service

However, this money transfer giant does have its fair share of negative reviews, too. These include criticism for transfer times taking longer than expected, negative experiences with customer service, and account closures.

Western Union has over 17,000 reviews on Trustpilot with an overall ‘Average’ rating of 3.3 out of 5.

Amongst the positive reviews, Western Union is particularly praised for:

• Great customer service

• Ease of use and convenience

• Good service at agent locations

However, like MoneyGram, Western Union’s reviews are a mixed bag. Negative reviews report slow transfer times, expensive exchange rates, and trouble contacting customer service when things went wrong with user’s transfers.

The MoneyGram international app supports English, Dutch, French, German, Italian, Portuguese, Romanian, Spanish, and is available on both iOS and Android. In terms of support, the only contact option on the website is to fill out a contact form or to use the service’s help centre. However, MoneyGram does also have many agent locations where you may be able to get assistance face to face.

MoneyGram does authenticate your identity in order for you to be able to send money with them. You can do this by uploading a photo of your passport or other identity documents (such as your driving license) on the app.

As one of the largest money transfer companies in the world, MoneyGram is subjected to a number of regulations to ensure it is capable of keeping your money secure. MoneyGram is licensed as an Authorised Payment Institution in the UK and is also licensed in all 50 US states.

The Western Union app is available in English, Spanish, and Mandarin, while the Western Union website supports many different languages around the world. The app is available on both iOS and Android to make international transfers more convenient for users. In terms of customer support, the website has email and telephone options as well as a large resource centre, while many users like the availability of agent locations for support.

Western Union takes you through several steps when first joining in order to verify your identity. This will usually involve uploading a photo of a valid form of ID to the website or directly on the app.

For security measures, Western Union implements Software Composition Analysis (SCA), which is an authentication security layer applied to your payment booking and account access. This is a part of the two-factor authentication (2FA) protocol Western Union has in place to keep your account secure.

MoneyGram has a Plus Rewards program that gives users the opportunity to earn rewards every time they send money online. Rewards include a 20% discount off your second transfer, 40% of the fee of your transfer after every 5th money transfer, and exclusive ‘members-only’ promotions.

If you’re based in the US, Western Union provides an additional service to pay bills via their service, simply requiring you to insert the name of the biller, the amount, and your account number. Another feature that some users may appreciate is that Western Union provides a tracking number to keep up to date with the status of your transfer, although this is something that many providers offer in some way.

Sending $200

At the time of writing, sending this sum to Singapore would have an exchange rate of 1.0000 USD = 1.3350 SGD with MoneyGram. The transfer would incur a fee of $4.99 whether you were paying by card or bank account, with the delivery method as a cash pickup. Transfer times would be minutes with a card payment, or up to 3 - 4 working days with a bank transfer. The total amount received would be 267.01 SGD.

Sending $1,000

Sending this sum would have the same exchange rate as listed above, but the fees change slightly. You would still incur a $4.99 fee when paying by bank account, whereas a credit or debit card payment would be $14.99 for a cash pickup within minutes. Total received would be 1335.05 SGD.

Sending $20,000

The provider has a limit of $10,000 USD for online transactions within a 30 day period, so you would not be able to send this amount using the website or app. You might, however, be able to send additional funds if you visited a MoneyGram agent location directly.

Sending $200

At the time of writing, sending this sum to Singapore with Western Union would have an exchange rate of 1.00 USD = 1.3456 SGD. The fees would vary from $0 for a bank deposit paid by bank account, up to a maximum of $12.00 for a cash pickup paid for by credit card. The transfer time would be within minutes if paying by card, or between 0 - 4 working days when paying by bank transfer. The total amount received would be 258.54SGD for a cash pickup paid for by debit card or bank transfer.

Sending $1,000

This sum would have fees between $0 (bank-to-bank transfer) up to $34.00 when paying by credit card for a cash pickup. The minimum transfer time would be 3 working days, up to 7 working days when paying by bank transfers. Total received would be 1345.00 SGD.

Sending $20,000

Sending this amount with Western Union would have an exchange rate of 1.00 USD = 1.3551 SGD (at the time of writing), with no fees for a bank deposit paid for by bank transfer. This is the only option for a sum this large. The total amount received would be 27102.00 SGD with a transfer time between 0 - 7 working days.