Which money transfer company should you use for your next international payment?
Western Union and MoneyGram are number one and number two in the international money transfer business. Western Union is almost synonymous with international payments and continues to be a leader in increasingly competitive money transfer space.
Compared to Western Union, MoneyGram is a relatively new player. MoneyGram as we know it now joined the market in 1998.
Money transfers made easy
The two money transfer companies have a number of similarities. MoneyGram is a little more straightforward when it comes to fees, Western Union provides more ways to pay and has more agents and collection points across the world. Both Western Union and MoneyGram let you send money online and in person and make funds available to collect from an agent in minutes once a payment has been made. Electronic transfers allow money to be sent direct to a bank account as well.
The services on offer vary based on where you’re sending the money. For example, MoneyGram transfers to Hong Kong can be collected in person only, whereas there’s the option of agent pickup or bank account deposit for transfers to India. Western Union give a similar range of options.
Western Union and MoneyGram do charge fees, the cost of the transfer depending on how the money is sent and received. Payments from a credit or debit card, for example, are quick albeit expensive. MoneyGram have a simpler ‘flat-fee’ approach to transfer fees, Western Union transfers can be more expensive, fees can be up to 10% of the total transfer amount. Both Western Union and MoneyGram make a small margin on the exchange rate for international payments. Be sure to compare the different payment providers as services and fees vary depending on what you’re looking to do.
Western Union vs Moneygram exchange rates
|USD||1 AUD = 0.7333 USD (cash transfer)||1 AUD = 0.715646 USD (cash transfer)|
|EUR||1 AUD = 0.6376 EUR||1 AUD = 0.648473 EUR|
|JPY||1 AUD = 76.2754 JPY||1 AUD = 75.893106 JPY (cash transfer)|
|GBP||1 AUD = 0.5724 GBP||1 AUD = 0.559635 GBP|
|CHF||1 AUD = 0.7196 CHF||1 AUD = 0.705915 CHF (cash transfer)|
|CAD||1 AUD = 0.9473 CAD||1 AUD = 0.945439 CAD (cash transfer)|
|HKD||1 AUD = 5.7649 HKD (cash transfer)||1 AUD = 5.822526 HKD (cash transfer)|
|BRL||1 AUD = 2.3501 BRL (cash transfer)||1 AUD =2.317174 BRL|
|CNY||1 AUD = 5.0172 CNY||1 AUD = 5.007243 CNY|
|CLP||1 AUD = 490.4985 CLP (cash transfer)||1 AUD = 479.140275 CLP (cash transfer)|
- Rates correct 07/10/16
- Western Union rates based on bank account transfer rates unless stated.
On face value, Western Union offer slightly better exchange rate than MoneyGram, but the above rates don’t factor in transfer fees. Western Union charge transfer fees that vary depending on the payment and method of collection. Unless you’re sending a large sum of money, the rates on offer won’t affect the bottom line too much.
The difference between the two companies when sending Euros is less than a cent. There are exceptions. For example, there’s a considerable difference in the exchange rate offered on Chilean Pesos. The choice of company for your international transfer can influence the bottom line here. This is why it pays to company all your options before you agree to a transfer. Shop around between money transfer companies to make sure you’re getting the best deal on your international exchange.
Western Union vs Moneygram - which is cheaper?
It can be hard to compare these two companies as there are a number of factors which influence the overall cost of your transfer. To compare apples with apples, the following example puts Western Union and MoneyGram side by side for a transfer to India.
Using a credit or debit card to pay for a transfer to India and selecting cash as a collection option will cost you $20 using Western Union. The same transfer using MoneyGram will net you a small saving. MoneyGram charge $17.00 for this service. These fees vary greatly depending on the country you’re sending the money too and the payment and collection method, so be sure to compare your options for the country you want to transfer you to before you access and process the payment.
Western Union vs Moneygram fees
Here’s a breakdown for a money transfer to the Philippines.
|Transfer fee - Pick up at an agent||$10.00 AUD||$28.00 AUD|
|Transfer fee - Bank deposit - Smart Money (MoneyGram) / Mobile Money Transfer (Western Union).||$10.000 AUD||$10.00 AUD|
|Transfer fee - Bank deposit - most banks||$10.00 AUD||Up to $25.00 AUD (For urgent payments)|
What’s the difference between Western Union and Moneygram?
While there are a number of similarities between Western Union and MoneyGram, there are some key differences too. The main difference between the two companies is the number of pickup locations. Western Union are ahead of MoneyGram, they offer over half a million places all over the world where you can collect your money in person compared to MoneyGram’s 300,000+ Another key difference is the payment options. Western Union offer telephonic transfers if working the internet isn’t your thing.
Western Union and Moneygram pick up options
Moneygram gives you the following options for collecting money.
- Cash. Collect the funds as cash from a MoneyGram agent.
- SMARTMoney. Get the funds sent to a smartphone mobile wallet using the MoneyGram SMARTMoney utility. Transfer limits apply.
- Bank deposit. Get the funds send directly to a bank account.
Western Union offer a similar choice of collection options.
- Cash. Collect the funds as cash from a Western Union agent.
- Mobile Money. Get the money deposited to a Western
- Bank deposit. Funds can be sent direct to the recipient’s bank account.