Last Updated on December, 2024
When it comes to sending money across borders, two major players stand out: Western Union and MoneyGram.
Both offer convenient and reliable services for transferring funds internationally. While their offerings are similar, there are key differences worth considering.
In this article, I’ll compare Western Union and MoneyGram in terms of safety, speed, international transfer fees, exchange rates, available countries, and more.
By understanding the features and nuances of each service, you can make an informed decision on which OPTION best suits your needs for transferring money globally.
Deal? Keep reading…
Quick Summary
Western Union and MoneyGram are both well-established and licensed companies offering international money transfer services. While their features are similar, there are differences in aspects such as speed, fees, exchange rates, and payout methods.
Both companies make money from the difference in exchange rates and charge transaction fees. MoneyGram generally offers better rates for larger transfers, while Western Union may be more advantageous for smaller transfers due to potentially lower transaction fees.
MoneyGram edges out Western Union in customer satisfaction and support, offering 24/7 email service and a dedicated fraud reporting phone line. However, Western Union operates in more countries and provides clearer information about transfer limits.
Contents
- Features: Western Union & MoneyGram
- MoneyGram Vs. Western Union
- Western Union Vs. MoneyGram: Ease of Use
- MoneyGram Vs. Western Union: Payout Methods
- Western Union Vs. MoneyGram Exchange Rates
- Western Union Vs. MoneyGram Fees
- What Currencies Can I Transfer?
- Western Union Vs. MoneyGram: Available Countries
- Business Accounts: Western Union Vs. MoneyGram
- Regulations & Safety: Western Union Vs. MoneyGram
- Duration: Transfer Money With Western Union and MoneyGram
- MoneyGram Vs. Western Union: Payment Methods Accepted
- Transfer Limits
- Customer Support
- Customer Reviews
- Conclusion
- FAQs
Features: Western Union & MoneyGram
| Aspect | Western Union | MoneyGram |
| Safety | Well-established and fully licensed company | Established and licensed company |
| Service | Available online, through the app, and in-store | Offered online and in-store support |
| Speed | Offers various delivery options: instant, next day, up to 5 days for bank transfers | Cash collection is often instant, while bank transfers take a day or two |
| Fees | Determined by the service destination country | Calculated based on service and destination country |
| Exchange Rates | Exchange rates include a markup | Exchange rates include a markup, which varies by transfer details and destinations |
MoneyGram Vs. Western Union
About Western Union
Western Union was started in 1851 in Rochester, New York, and was originally named the New York and Mississippi Valley Printing Telegraph Company. After a merger, it changed its name to Western Union Telegraph Company in 1856.
Initially focused on telegraph services, it shifted towards money transfers as telegraph services declined. Since 2006, it’s been solely focused on international money transfers.
Now, it’s headquartered in Denver, Colorado, and is a big player in global money transfers.
Here you can learn more about Western Union.
About MoneyGram
MoneyGram came about from the merger of Travelers Express and Integrated Payment Systems Inc. It later became independent before being acquired by travelers in 1998.
Now known as MoneyGram International, it’s headquartered in Dallas, Texas. Founded in 1980, MoneyGram has grown into a global remittance network with agents and financial partners worldwide.
It’s a publicly listed company with a stock ticker called MGI.
Here you can learn more about MoneyGram.
Western Union Vs. MoneyGram: Ease of Use
In terms of ease of use, both MoneyGram and Western Union offer easy processes for transferring money. You typically need to provide the recipient’s bank account details, the amount you want to send and pay the transfer fee.
Depending on the country and method chosen, transfers can be completed within minutes or take a few business days.
Both MoneyGram and Western Union are convenient options for sending money, whether you prefer to go for a physical location or use their online services. Consider factors like location availability and digital features to determine which service best suits your needs for ease of use.
MoneyGram Vs. Western Union: Payout Methods
To see which way you can get your money, look online or in the app of the service you’re using. Here are the ways you can usually get your money:
Western Union
MoneyGram
Winner: MoneyGram. It offers the additional service of cash delivery to your home, which provides added convenience compared to Western Union.
Western Union Vs. MoneyGram Exchange Rates
Western Union Exchange Rates
When you make an international transfer of money through Western Union, they profit in two main ways. First, they make money from the difference between the wholesale rate at which they buy currency and the rate at which they sell it to you.
Second, they charge you an additional fee for the transaction. The exchange rate you receive from Western Union can vary widely depending on factors like currency, the country you’re transferring to, and how you’re paying.
It’s important to note that while Western Union may offer a better exchange rate for larger and more secure transfers, they might not necessarily provide the best overall exchange rate.
For instance, if you were sending 5000 Australian dollars to US dollars, Western Union’s rate might be 0.74 USD for every AUD, based on a mid-market exchange rate of 0.76.
It’s advisable to compare Western Union’s exchange rate with other providers before making a transfer.
MoneyGram Exchange Rates
MoneyGram operates similarly to Western Union when it comes to making money from international money transfers. It profits from the difference between the wholesale rate at which it purchases currency and the rate at which it offers it to customers, and it charges an extra transaction fee.
Like Western Union, MoneyGram’s exchange rates can vary based on factors like currency pair, destination country, and payment method. MoneyGram adjusts its rates based on the amount you transfer, typically offering better rates for larger sums.
However, it’s essential to remember that even though MoneyGram might provide better rates for larger transfers, they may not necessarily offer the most competitive overall exchange rate.
For example, if you were transferring 5000 Australian dollars to US dollars, MoneyGram might offer a rate of 0.75 USD for every AUD, based on a mid-market exchange rate of 0.76.
Before choosing MoneyGram for your transfer, it’s wise to compare their rates with those of other providers.
Winner: As per my analysis, Western Union is more advantageous for smaller transfers due to its potentially lower transaction fees.
Western Union Vs. MoneyGram Fees
Both Western Union and MoneyGram have similar fee structures. The fees you pay depend on where you’re transferring money, the currency, and how you’re transferring it.
With Western Union, you can transfer money either for your recipient to collect at a Western Union branch or using a direct bank transfer. MoneyGram offers the same services, but not all countries support their direct bank transfer option, so you should check before deciding.
Remember, there could be additional fees beyond what’s mentioned here. Your card provider might charge a cash advance fee, and your recipient’s bank could add a deposit fee or corresponding banking fee.
For example, transferring $1,000 from the US to the UK might cost:
Western Union Fees
MoneyGram Fees
Winner: If you care more about paying less money when picking up cash or if you’re transferring money to a country where MoneyGram lets you transfer directly to a bank account, then MoneyGram might be the better option for you.
What Currencies Can I Transfer?
Western Union
Western Union is one of the major international money transfer services. They operate in most parts of the world. The services they provide may vary depending on where you’re transferring money. You can easily check the available options by using their website or app.
Finding a Western Union location is simple with their agent location finder tool.
MoneyGram
MoneyGram is another company that allows you to transfer money to nearly 200 countries and territories. When transferring money, you can quickly verify if the destination country is covered.
You can review the fees and rates during the transaction. Then, use the convenient MoneyGram locator tool to locate an outlet.
Western Union Vs. MoneyGram: Available Countries
Western Union
Western Union operates worldwide, allowing you to transfer money from one country to another. While online transfers are available for many countries, such as the United States and the United Kingdom., for others, like Mexico, you may need to visit an agent in person.
Understood?
MoneyGram
Similarly, MoneyGram serves numerous countries globally, offering online international money transfer services in most locations. You also have the option to visit an office or agent to conduct your transaction.
Both MoneyGram and Western Union enable you to send money to virtually any country worldwide.
Winner: In the competition to transfer money to different countries worldwide, Western Union came out on top. They have a stronger support system for transferring money from various countries compared to MoneyGram.
Business Accounts: Western Union Vs. MoneyGram
| Aspect | MoneyGram | Western Union |
| Global Reach | Facilitates international and domestic MoneyGram payments to 200 countries | Offers global business payments in 130 currencies to 200 countries and territories |
| Platform Ease | Provides a unified platform for all business transfers | Design solutions to suit various business types |
| Additional Benefits | Offers money orders and check processing for businesses | Enables streamlined mass payments to reduce administrative workload; provides solutions for managing foreign currencies |
Winner: Considering these aspects, Western Union appears to offer more extensive global reach and international money transfer providers designed to different business needs.
Regulations & Safety: Western Union Vs. MoneyGram
When transferring money overseas, it is of the utmost importance to ensure the safety of your funds and the confidentiality of your personal information.
Western Union
Western Union employs various measures to ensure secure money transfers. They verify your identity using a photo ID to confirm that you’re the rightful sender.
Plus, they use photo ID and tracking to ensure that the cash reaches the intended recipient. Security protocols are implemented on both their website and mobile apps to safeguard transactions.
Western Union also emphasizes educating customers and agents on fraud prevention measures.
In terms of licensing and regulatory compliance, Western Union is licensed in all the markets it operates in. For example, in the US, the New York State Department of Financial Services licenses them as money transmitters.
In the UK, Western Union is regulated by multiple authorities, including the Financial Conduct Authority.
MoneyGram
Similar to Western Union, MoneyGram prioritizes customer protection and security. It uses identification verification to prevent unauthorized access to bank accounts and ensure the integrity of transactions.
MoneyGram also focuses on educating customers about fraud prevention and providing resources for reporting suspicious activity. It enforces strict adherence to safety guidelines among its agents and partners.
MoneyGram is licensed and authorized to operate in all of its target markets. For instance, in the US, MoneyGram is an authorized money transmitter and holds licenses from regulatory bodies such as the New York State Department of Financial Services.
In the UK, they are also regulated by the Financial Conduct Authority.
Winner: Both MoneyGram and Western Union are equally secure for international money transfers. Both prioritize the strongest security measures to protect your funds and information.
Duration: Transfer Money With Western Union and MoneyGram
When you send money internationally, the time it takes depends on several factors: how much you’re sending, the type of money you’re transferring, where you’re sending it to, and how quickly your bank processes payments.
Western Union has different options for when your money gets to its destinations:
With MoneyGram, cash payments are typically ready within a few minutes. However, the time might be affected by things like when the agent locations are open and public holidays in the destination country.
For bank transfers, MoneyGram payments on popular routes might arrive within an hour. Other payments usually come on the same day or the next working day after you set them up.
Winner: When it comes to speed, Western Union and MoneyGram offer similar options. The speed depends on factors like where you’re transferring money and how it’s being received.
MoneyGram Vs. Western Union: Payment Methods Accepted
Here’s how you can pay for your money transfers with Western Union and MoneyGram:
Western Union
You can pay through different methods:
Some countries offer regional payment options like POLi in Australia and New Zealand, iDEAL in the Netherlands, Trustly in Sweden, and more. Check the Western Union website or app in your country to see if your local payment method is supported.
MoneyGram
You have various options to pay:
Winner: Western Union. Because it offers broader payment method support, including many local options, it gives you more choices for international transfers than MoneyGram.
Transfer Limits
TRUST ME. Both MoneyGram and Western Union have their policies when it comes to transfer limits.
Western Union’s transfer limits are determined by various factors, including your bank account history and previous transfer amounts, the locations involved in the transaction (both yours and the recipient’s), the method of receiving the money, and how you’re paying for the transfer.
Plus, specific agents or destination countries may impose their limits, which can be checked online or through the Western Union app. If you’re conducting the transaction in person, the agent will inform you of any applicable limits.
On the other hand, MoneyGram does not publicly disclose its limits; instead, it has daily, weekly, and monthly limits in place to adapt to changing market conditions and security requirements.
If you encounter a warning about reaching a transfer limit while preparing a transaction with MoneyGram, they advise reaching out to customer support for further assistance.
This approach allows MoneyGram to maintain flexibility in adjusting their limits while ensuring the security and efficiency of their money transfer services.
Winner: Western Union is better because it tells you clearly about transfer limits. You can easily check your limits online or in person. MoneyGram doesn’t give clear information, so it’s harder to know your limits. That’s why Western Union wins.
Customer Support
If you need help with Western Union or MoneyGram, there are a few ways to get it:
For Western Union:
For MoneyGram:
Winner: MoneyGram is the winner because of its 24/7 email service and dedicated fraud reporting phone line.
Customer Reviews
Western Union has 73,400 reviews and a TrustScore of 4.1 out of 5, while MoneyGram has 41,075 reviews and a TrustScore of 4.5 out of 5.
MoneyGram has a slightly higher TrustScore than Western Union.
Western Union:
Here are some random screenshots of the customer reviews I came across:
- Customer Review 01:
Western Union has fulfilled my expectations by making the task of transfering money overseas easier (from my Laptop) and less expensive than other money transfer companies. Western Union customer service is friendly, helpfull and does not charges you for service.
Karlchess says he likes using Western Union. Because it’s easy and cheap to send money abroad from their laptop, he appreciates friendly customer service and recommended Western Union to others because it offers good services and rewards that other companies don’t have.
- Customer Review 02:
Good customer services bad things I don’t like about it, they charge way too much fees for some countries specifically Hayti; they are cheap with promo codes & coupons.
Regular customer should be sent discount to on a weekly basis.
This user says that the money transfer service is mostly good but says the website is hard to use. The layout is confusing, especially when trying to edit receiver profiles. However, the security and transfer services are excellent.
- Customer Review 03:
everything was going smoothly until I was asked for a second verification of my identity. it sent a code to my home phone, which doesn’t get text messages. then I was able to get it to send the message to my cell, which was a link. upon going to the link, my cell said… “This device or browser you are using does not support AirKey taps.
This user had trouble verifying their identity online. They couldn’t receive the code on their home phone, and their cell phone had an error message. Eventually, they got through by closing the window.
MoneyGram:
Here are some random screenshots of the customer reviews I came across:
- Customer Review 01:
My experience using MG has been good, with transaction working seamless and fast pay out time. If there is any downside, it’s knowing you can help friends and family anytime ????
Delton Francois says that his experience using MoneyGram has been positive. Transactions happen smoothly and quickly, and payouts are fast. The only downside he mentions is that he feels a bit of pressure always to be available to help friends and family with online money transfers.
- Customer Review 02:
t always very easy to send money using MoneyGram. The rate for sending money are always low. It so easy for my family’s to pick it up also. I will always recommend MoneyGram to my friends and families.
Louisiane says that using MoneyGram to transfer money is very easy. The online transfer fees are always low, and it’s simple for their family members to pick up the money. They like MoneyGram so much that they recommend it to their friends and family.
- Customer Review 03:
I have used the service a few times before and most times there is always a little problem, such as try later waiting approval from your bank. But generally its works OK.
Dennis has used the service a few times before. He also says it usually works fine, but sometimes there are small issues, like having to wait for approval from their bank. Overall, though, it’s okay.
Winner: Both Western Union and MoneyGram generally receive positive feedback from customers. MoneyGram slightly edges out in customer satisfaction. However, both face challenges with technical issues, transaction limits, and data security concerns.
Conclusion
Western Union or MoneyGram? (The choice is yours.)
If you ask me to pick one, Western Union seems like the better pick. It’s a good choice for me because it works in more countries and tells you clearly about how much you can transfer.
With Western Union, you know what to expect, making it easier to send money abroad without any surprises. However, this doesn’t mean MoneyGram isn’t a good option. That totally depends on your preference.
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