Western Union vs. MoneyGram: Which Is Cheaper for Wire Transfers? | MyBankTracker


When you ‘re sending money to class or friends via a wire transfer, you want to pick the least expensive option .
Western Union and MoneyGram are the two largest money transportation services in the populace and they offer multiple methods to transfer funds .
Is one generally better priced than the other ?

Or are there early services that may be even less expensive .
Let ’ s investigate both services, a well as some alternatives .
This may be a classic example of “ one size doesn ’ deoxythymidine monophosphate fit all ” .

Western Union

Western Union is the world ’ sulfur largest provider of money transfers .
The company has more than 500,000 agent locations worldwide, including more than 44,000 in the U.S. alone. It operates in more than 200 countries and in 130 currencies .
Western Union offers many different transfer options. Each involves a trade off of travel rapidly vs. the fee you will pay .
For case, below is the transfer of $ 1,000 within the U.S. by credit rating wag to a cash pickup placement .
It ’ s closely $ 100, but the transfer is instant. It may be necessary if funds are needed a soon as possible .
The number of electric potential transfer options includes :

  • Credit/debit card to cash pickup with immediate transfer – $99.99 (shown above).
  • Pay in-store to cash pickup with immediate transfer – $10.00.
  • From bank account to cash pickup with 4 business days transfer – $21.00.
  • Credit/debit card to bank account with 2 business days transfer – $45.00.
  • Bank account to bank account with 6 business days transfer – $0.99
  • Pay in-store to bank account is not available.

As you can see, the most cost-efficient and debauched transfer method acting ( at least within the U.S. ) is pay in-store to cash cartridge. The transfer is immediate, and the tip is merely $ 10.00 .
You ’ re generally limited to transfers of not more than $ 5,000, but precisely how much you can send depends on respective factors, including your transfer history, payment method, and finish, equally well as other factors .
precisely how much you ’ ll pay for a transfer will depend on the destination, measure and transfer method used .
Fees can, therefore, vary significantly for the transportation of the lapp measure of money, based on the details .
This applies to both Western Union and MoneyGram .

MoneyGram

MoneyGram operates in 200 countries and has a net of 347,000 agent offices, including more than 30,000 in the U.S. alone .
MoneyGram is the world ’ s second base largest provider of money transfers, after Western Union .
For most countries, you can send up to $ 6,000 per on-line transmit, and up to $ 6,000 every 30 calendar days .
If necessary, you may send extra funds from a MoneyGram agentive role location .
MoneyGram besides offers different send and receiving methods .
For a transplant from a bank explanation or a credit or debit tease to a cash cartridge placement within the U.S. the fee is $ 49.99 for $ 1,000 .
But when you send the same amount of money from a MoneyGram localization to a cash pickup by the recipient role, the fee is precisely $ 20 for $ 1,000 .
Both methods allow the money to transfer in a matter of minutes, so it will in truth come down to the inconvenience of driving to a MoneyGram localization to save $ 29.99 with a transfer from a bank account or credit card .
MoneyGram offers several different ways to send and receive money, though in most cases they don ’ t provide details on either the monetary value or the time skeletal system of the method acting :

  • Credit/debit card to direct cash pickup.
  • From location to cash pickup – $20 (screenshot above).
  • Bank account to bank account available same or next business day.
  • From bank account to direct cash pickup.
  • Credit/debit card to bank account.
  • From location to bank account.
  • Credit/debit card to mobile wallet.
  • From location to mobile wallet.

Comparing Costs Between Western Union and MoneyGram

Based on the remove of $ 100 and $ 1,000 sent on-line from a checking account to a cash tone arm localization ( requital by debit/credit cards have higher fees ), the fees for both transfer companies are in the postpone below .
We ’ ve used bank transfers ( checking accounts ) to cash pickup since on-line transfers have become the most park and convenient methods for transferring funds and making payments .

Western Union vs. MoneyGram Money Transfers

Destination/Service Western Union $100 Western Union $1,000 MoneyGram $100 MoneyGram $1,000
United States (New York or California) $9 $21 $7.99 $49.99***
Australia $11 $26 $10 $25
Brazil (Sao Paulo) $6 $6 $5 $5
Canada (Toronto) $7.99 $19.99 $7.99 $19.99
China $11 $26 $10.99 $25.99
France $11 $26 $10.99 $25.99
Germany $11 $26 $10 $25
Mexico (Mexico City) $5 $5 $4 $4
Russia $12 $36 $11 $35
United Kingdom $11 $26 $10.99 $25.99

***Sent by cash at location or credit/debit card – no bank account option offered .

Don’t Forget Credit Card Fees and Exchange Rates

The least expensive support reference with a money transfer service will be your savings bank account or debit card. If you use a credit tease there are two fees you must be mindful of :

  1. Cash advance fee – generally 3% or 5% of the amount transferred, and
  2. Foreign transaction fee – typically 3% of the amount transferred to a foreign recipient.

Both fees are over and above what you ’ ll pay to either Western Union or MoneyGram .
And of course, if the come transferred via credit card remains outstanding, it will besides be subject to interest charges, which are often higher than the rate charged on purchases .

Exchange rate spreads

You will generally expect transfer services to reflect the currentness central rates shown on popular websites and newsworthiness publications. But transfer services besides make money on these fees .
It works like this … the rate you see quoted on news sources is the “ mid-market rate ” .
For exercise, if the US dollar/euro substitution rate is 1.15, the unfold may be 1.10 to 1.20 .
The transfer agent will pay 1.10, but will charge the customer 1.20. That will give the transfer agent an extra .10 on the transaction, and .05 over the published rate .
It isn ’ t illegal – it ’ second within the central rate compass, which changes every day .
This fee won ’ t be angstrom obvious to you as other fees, but it will be charged good out of batch .
The entirely way to know for certain what you ’ re paying for the fee is for the recipient role to look at the concluding total received .
There ’ s normally no way to determine this in advance .

Other Wire Transfer Options to Consider

There are two transfer sources to investigate before using a transplant service .

Your own financial institution

Banks typically charge a flat fee for outgoing wire transfers, regardless of the international address .
For example, J.P. Morgan Chase charges $ 25 for on-line domestic surpass wires ( $ 35 if you need depository financial institution aid ) and $ 40 for on-line foreign outgoing wires ( $ 50 if you need bank aid ) .
This may or may not be less expensive than a transfer service .
And like the money transfer services, banks besides tweak substitute rates in their favor as a source of extra tax income .
address will besides be a agent in using banks for wire transfers .

Wire Transfer Fees at Top Banks

PayPal

PayPal charges no fees when you transfer money to family or friends in the US who besides have a PayPal account. If the transmit is funded from a credit rating calling card, debit card or PayPal Credit there is a tip of 2.9 % of the measure funded, plus a fixed tip of $ 0.30 .
For PayPal fees on transfers sent to parties in alien countries, the fee schedule is as follows :

Paypal Fees to Send Money to Other Countries

Payment method Country of recipient’s account Fees
Funded by your PayPal balance or a bank account linked to your PayPal account. Canada & Europe $2.99 USD
#rowspan# any other country $4.99 USD
Funded by a credit card, debit card or PayPal Credit. Canada & Europe $2.99 USD† + 2.9% of the transaction amount funded this way plus a fixed fee based on currency.
#rowspan# any other country $4.99 USD† + 2.9% of the transaction amount funded this way plus a fixed fee based on currency

Note: The fixed fee includes diverse small central rate additions from dozens of countries excessively numerous to list, but common examples include .20 pounds to the UK and .35 euros to EU countries .

Final Thoughts

Which is the more cost-efficient service, MoneyGram or Western Union ?
MoneyGram tends to be slightly cheaper, about across the board. But it ’ south never an claim comparison. It may be that a Western Union is quicker than MoneyGram to a certain address, or with a certain transfer method .
Before deciding which to use – or to use your bank or PayPal – it ’ sulfur best to use the calculator tools for each to help you choose.

apparently little differences, like transfer method acting, finish, and even amount, can make a difference .
As well, since fiscal institutions use apartment tip pricing, you may be better going with your bank or credit union if the tip by the transportation service is particularly high .

source : https://www.peterswar.net
Category : Finance

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