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MoneyGram vs TransferWise
We compare a popular service with a relative newcomer to see how they stack up on fees, rates and speed.
Both MoneyGram and TransferWise will get your money where it needs to go, but which one will end up in a better deal for you?
The fees and rates used in this comparison are accurate as of 20 November 2018.
The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.
Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.
Which has lower fees?
MoneyGram
Fees vary depending on how much money you're transferring, how you're sending it and the country you're sending it to. It's difficult to pin down exactly how much you'll pay to send money internationally without actually initiating a transfer.
As an example, to send $1,000 to a cash pick-up location in India, you'll pay $4 in fees. The same amount to the United States will cost you $65 in fees. For each of the transfers, though, the fee is a percentage, rather than a flat fee. This means the more you send, the more expensive it'll be.
TransferWise
Fees depend on where and how you're sending money. They range from 0.45–1.5% of your transaction and can sometimes be a bit higher, depending on the currency you're transferring to. There's also a small flat-fee with each transfer, that's often only a few dollars.
To send $1,000 to India, you'll pay 0.6% of your transaction (or $7.16, including the $1.20 flat fee). To the US, the fee drops to 0.45% and a $1.50 fee, which ends up being $5.97 in fees.
Winner: TransferWise
Although MoneyGram is a few dollars cheaper when sending to India, the huge difference in fees in the US transfer outweighs this. TransferWise's fees are, as a whole across all currencies, lower.
Let's crunch the numbers: Sending $1,000 and $8,000 to Vietnam
To put this more into context, let's compare TransferWise and MoneyGram when sending a money transfer to Vietnam. Keep in mind that other currencies will have different fees and transfer times.
Sending $1,000 to Vietnam
| MoneyGram | TransferWise | |
|---|---|---|
| Transfer fee | $17.00 | $10.42 |
| Exchange rate | 1 AUD = 16,727.62 VND | 1 AUD = 16,968.42 VND |
| Transfer speed | Instant | 1 day |
| Total Vietnamese dong received | VND16,727,618 | VND16,791,613 |
| Receiver gets | 63,995 less | 63,995 more |
Sending $8,000 to Vietnam
| MoneyGram | TransferWise | |
|---|---|---|
| Transfer fee | $47.00 | $63.52 |
| Exchange rate | 1 AUD = 16,727.62 VND | 1 AUD = 16,968.42 VND |
| Transfer speed | Instant | 2 days |
| Total Vietnamese dong received | VND133,820,946 | VND134,669,554 |
| Receiver gets | 848,608 less | 848,608 more |
For both transfers, you end up getting more money with TransferWise. However, MoneyGram is the faster service, so it depends on what you're transferring for.
Which offers better exchange rates?
MoneyGram
MoneyGram makes its money from transfer fees and by skewing the exchange rate for a profit, also referred to as adding a margin. The margin added could be anywhere between 0.6% and 10%, depending on where you're sending. On average, it tends to be around the 5% mark added on the mid-market rate.
TransferWise
Exchange rates are where TransferWise shines. It's one of the only money transfer services that offers you the mid-market rate. So if you're sending $1,000 to the UK and the mid-market rate is 1 AUD = 0.64 EUR, that's the rate you're going to get.
Winner: TransferWise
There's no denying the power of paying the mid-market rate. TransferWise wins in this category by quite a way with its mid-market rate offering.
Which is faster?
MoneyGram
Delivery speed varies with transfer options. At an agent location or by phone, your transfer could be delivered in minutes (though with higher costs). In general, your cheaper options will take two to four business days for receipt. A bank transfer may take several days.
TransferWise
Depending on the currencies involved and your payment method, it could take up to four business days for your recipient to see your cash. Paying by card will get your transfer there almost instantly, but will incur an extra fee.
Winner: Tie
Your average transfer may take about the same time with both services, so we're calling this one a tie.
General features
| Payment methods | Receiving options | Minimum and maximum transfers | Transfer speeds | Currencies | |
|---|---|---|---|---|---|
| MoneyGram | Bank transfer, credit card, debit card, cash | Bank account, cash pick-up location | Minimum: $1 Maximum: $7,000 |
Within an hour | 95+ currencies |
| TransferWise | Bank transfer, credit card, debit card | Bank account | Minimum: $1 Maximum: $1,800,000 |
1 - 2 days | 45+ currencies |
MoneyGram
You can either use MoneyGram online or at one of its agent locations around Australia. Once you enter how much and which currency you want to send, you'll confirm the exchange rate and pay. MoneyGram will then convert and deliver your money to your recipient's bank account or to a cash pick-up location.
TransferWise
TransferWise is solely online, which means you'll need to create an account and be verified. To send money, select the currencies you are exchanging and indicate how much you want to send. After reviewing your rate and fee, money is pulled from your bank account.
Bottom line
TransferWise is the new kid on the block that offers easy, secure transfers online in over 40 currencies around the world. Real-time mid-market exchange rates and low fees crush MoneyGram's often complicated fee structure.
But if you don't have time on your side, you may opt to pay more with MoneyGram to get it there faster or in cash. Ultimately, you'll need to compare your options to find the service that's right for you.
Looking for more options?
Check out what fees and exchange rates some other money transfer services are offering with our calculator below.
The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.
Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.
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