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Western Union vs MoneyGram
Discover where to find the best deal on your next overseas transfer.
Neither Western Union or MoneyGram is the cheapest option out there – but they have flexible transfer options and strong coverage. Which one is best for you depends on how much you're transferring and how fast you need the money to arrive.
The fees and rates used in this comparison are accurate as of 12 July 2023.
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Which has lower fees?
Western Union
Figuring out how much you'll pay to transfer money internationally can be difficult. Although many fees start from $0, they can be tens or even hundreds of dollars when paying by credit or debit card for cash pickup in certain countries. However, fee-free transfers are available to selected destinations, including India and the Philippines, when you pay for your transaction with POLi.
MoneyGram
Fees vary depending on how much money you're transferring, how you're sending it and the country you're sending it to. Unless you actually initiate a transfer, it's not easy to find out upfront how much you'll pay. As an example, to send $1,000 to a bank account in India, you'll pay $2.99 in fees; if you send the same amount for a cash pickup, you'll pay over $7.
Winner: Western Union
There are several factors that affect transaction fees with Western Union and MoneyGram, so there's no clear winner here.
Let's crunch the numbers: Sending $1,000 and $5,000 to Europe
Julie wants to send money to her daughter in France, so she compares the cost of sending $1,000 and $5,000 via a bank transfer with Western Union and MoneyGram.
Sending $1,000 to Europe
| Western Union | MoneyGram | |
|---|---|---|
| Transfer fee | $0 | $0 |
| Exchange rate | 1 AUD = 0.6077 EUR | 1 AUD = 0.5966 EUR |
| Transfer speed | Within minutes | Within minutes |
| Total euros received | €607.79 | €594.83 |
| Receiver gets | €12.96 more | €12.96 less |
As you can see, Western Union offers slightly better value for money when sending $1,000 to Europe.
Sending $5,000 to Europe
| Western Union | MoneyGram | |
|---|---|---|
| Transfer fee | $0 | $2.99 |
| Exchange rate | 1 AUD = 0.6078 EUR | 1 AUD = 0.5966 EUR |
| Transfer speed | Within minutes | Within minutes |
| Total euros received | €3,039.28 | €2,981.61 |
| Receiver gets | €57.67 more | €57.67 less |
Once again, Western Union comes out on top, giving Julie's daughter an extra €57.67.
Which offers better exchange rates?
To understand who offers better exchange rates, you'll need to first look at the mid-market rate. This is the true exchange rate that averages the buying and selling rate of a global currency – and the rate banks and transfer services use when they trade among themselves.
Western Union
Depending on the country you're sending money to, a typical exchange rate at Western Union will range from 1.5% to 5% above the mid-market rate. If you're sending a large amount overseas, this means hundreds of dollars that goes straight to Western Union.
We'll use the example of a transfer to Indian Rupee (INR):
- If the mid-market rate is 1 AUD = 55.2419 INR
- Western Union's exchange rate might be 1 AUD = 55.0734 INR
MoneyGram
MoneyGram adds a markup to exchange rates to make 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 diverted to MoneyGram's pockets.
So if you're sending money to China:
- If the mid-market rate is 1 AUD = 55.2419 INR
- MoneyGram's exchange rate may be 1 USD = 54.9660 INR
Winner: Tie
Exchange rate margins vary greatly depending on where you're sending your money, so we couldn't split Western Union and MoneyGram here.
Which is faster?
Western Union
Delivery speeds vary with transfer options. When you send a cash pickup transfer from an agent location or online, your transfer could be delivered in minutes (but will cost more). However, sending money to a bank account can take up to five days, depending on the country.
MoneyGram
Like Western Union, delivery speed with MoneyGram varies by transfer option, with cash transfers in person delivered in minutes (again with higher costs). However, bank deposits are typically processed on the same or next day.
Winner: MoneyGram
There's no question that these services are similar. Both allow you to send cash to a loved one overseas within minutes, but MoneyGram has shorter processing times for bank deposits than Western Union.
General features
| Payment methods | Receiving options | Maximum and minimum transfers | Transfer speeds | Currencies | |
|---|---|---|---|---|---|
| Western Union |
|
| Minimum: $1 Maximum: $50,000 | Within minutes | 138 currencies |
| Moneygram |
|
| Minimum: $1 Maximum: $13,750 | Within minutes | 137 currencies |
Western Union
Western Union is a major player in the world of international transfers and allows you to send funds to more than 200 countries. You can send money online, in person or via a mobile app, and the funds can be deposited into your recipient's bank account or made available as cash for collection at more than 500,000 locations. To send a transfer online, you'll need to register for a free account and then provide your recipient's details and specify the amount you want to send.
MoneyGram
MoneyGram also offers in-person and online transfers, and it boasts almost 350,000 agent locations in more than 190 countries around the world. It allows you to send cash pickup transfers and bank deposits, while home delivery, mobile wallet deposits and loading funds directly onto your recipient's debit card are also available in some countries. To send a transfer online, register for a free account, specify your payment amount and then enter your recipient's details.
Bottom line
Western Union and MoneyGram are quite similar. Exchange rates vary greatly between the two providers depending on where you're sending money, so it's worth getting a quote from each provider for your specific transaction.
MoneyGram offers faster transactions if you're sending a bank transfer (only available in selected countries). But if it's more important that your friends or family be able to pick up your money in cash, Western Union's 500,000 agent locations worldwide beat MoneyGram's 350,000.
These two services aside, you could do better with another money transfer specialist. Compare your options to find a provider that's perfect for your situation.
Looking for more options?
Our table below lets you compare services you can use to send money abroad. Compare fees, exchange rates and discounts from different money transfer services, and when you have made your choice, click Go to site.
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Ask a question
I have an invoice for 1000 euros from Lithuania, I live in Singapore & have Singapore dollars. Can I do that?
Hi Mike,
Thanks for reaching out.
Just to confirm, do you wish to send money to Lithuania to settle the 1000 euro invoice? If so, you may do that either through the Western Union or Moneygram. Both let you send money online and in person. You may also send the money directly to a bank account through electronic transfers.
If this is not what you’re asking about, please do not hesitate to message us again and we’ll be happy to assist.
Cheers,
Liezl
How about comparison between XE and these money transfer companies?
Hi Prajeesh,
Thank you for your inquiry.
You may want to read our XE Trade Money Transfer guide where you can read our review. Meanwhile, you may also like to check the list of international money transfer service providers featured on our website to learn more about your options.
Hope this helps.
Cheers,
May
Thanks May for your prompt reply. It sure is helpful.
I want to send money via western union. Do I need an ID to Send Money?
Hello Barbara,
Thanks for your question .
You’ll need to register with Western Union in order to use its money transfer services. To do this, you’ll need an Australian driver’s licence, passport or Medicare card for identification purposes.
Once your profile has been created, you can lodge transfers online or in person at a branch. You’ll simply need to supply your recipient’s full name and address, plus a credit, debit or prepaid Visa or MasterCard issued by an Australian bank. Of course, you’ll also need to be over 18 years of age.
Though funds availability can be affected by factors such as agent location hours, funds are typically available for your recipient to pick up within minutes.
I hope this helps.
Cheers!
Chester
Hi Barbara,
Thanks for your question.
You must have an accepted form of government-issued photo ID. Acceptable ID includes:
All passports (Australian and overseas)
Australian-issued drivers license
Australian-issued 18+ proof of age cards; and/or Photo Card
Hope this helps.
I am sending $600 to Istanbul, Turkey. I am going to use a credit card, probably pay pal. Which is cheapest to send it on line Moneygram, Western Union, or PayPal?
Hi Little Sue,
Thanks for your question.
Based on our research and case study, your recipient receives more if you use Western Union. However, please note that services charge different fees and rates depending on the currency and send amount. You can learn more about this through our guide where we compared MoneyGram, Western Union, and PayPal.
We recommend that you conduct your own comparison for your personal situation to find the best deal for you.
Regards,
Shirley
Please I want to pick up money which one is the higher money between money gram and western union?
Hi Joseph,
Thanks for your question.
Based on the case study on this page, Wester Union tends to offer higher exchange rates. However fees may vary so we recommend looking into the cost of transferring along with the exchange rate offered. Remember, fees will also depend on the country you are sending money to or where you’re picking up the cash. As we are a comparison site, we provide general advice only.
Hope this helps.
Clarizza