Western Union
Western Union is a familiar name in the money transfer business, and nearly everyone has a bank account. But which should you use when sending money to friends and family? Western Union is typically cheaper than a bank but is still more expensive than other money transfer providers.
 Western Union |  Bank Transfers | |
|---|---|---|
| Fees | Starts from $5, no fees for first-time customers | From $25 to $85 or more |
| Exchange rates | Up to 6% above the midmarket rate | More than the midmarket rate plus margin |
| Speed | Delivery speed varies with transfer options | Varies by bank |
| Max Transfer Amount | $50,000 | Varies by bank |
| Read review |
Both major US banks and Western Union can send your money next door or to the other side of the world.
To make a transfer with Western Union, go to its site, enter how much you’re transferring and to which country, and see how much you’ll pay for the exchange. Once complete, Western Union converts and delivers your money to a bank account or for cash pickup at locations worldwide. You can also initiate a transfer by phone, through a mobile app or in person.
Read review: Western Union
Bank wire transfers are a quick, efficient way to move your money from one bank account holder to another through banking networks. While in the past you had to visit a bank branch to initiate a money transfer, these days most banks allow you to initiate transfers online and by phone as well. However, delivery options are typically limited to bank account deposits.
For domestic transfers, Western Union typically charges $5.99 to send up to $50 for cash pickup anywhere in the US, with the transfer fee soaring to about $100 for a transfer of $1,000. For transfers to a bank account, you’ll pay lower fees: $5 for transfers up to $50 and about $45 to transfer $1,000.
For international transfers, figuring out your transfer fee can be muddied. Although most fees start at $5, they can be as much as $45 or more when paying by credit or debit card for cash pickup in certain countries. When sending money to high-traffic countries such as Mexico or India, however, some agents offer fee-free transfer options.
While most major US banks offer free bank-to-bank domestic transfers —or waive fees for specific account levels — they’re typically your most expensive option when sending money internationally. Banks charge higher fees — anywhere from $25 to $85 or more, depending on the details of your transfer — and a bigger variety of fees: incoming, outgoing and other fees.
On top of high fees, they offer weaker exchange rates than money transfer specialists. They also offer fewer options for your recipient, typically requiring they have a bank account in which to receive your cash.
Winner: Western Union
For international money transfers, Western Union’s typical starting fee is lower than your average fee at a major US bank. Not to mention more ways for your friends and family to receive your cash.
To understand who offers better exchange rates, you’ll need to first look at the midmarket 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.
Depending on the country you’re sending money to, a typical exchange rate at Western Union could be up to 6% above the midmarket rate. If you’re sending a large amount overseas, this means hundreds of dollars that go straight into Western Union’s coffers.
We’ll use the example of a transfer to euros (EUR):
Nearly all banks skew the published exchange rate for a profit, but you could pay higher margins than even those at Western Union.
Using the example of a transfer to euros (EUR):
Winner: Tie
Unless you’re transferring a considerable sum of money, the difference in exchange rates offered by Western Union or your bank is negligible. Though Western Union may offer rates that are slightly better, depending on where you’re sending your money.
Delivery speed varies with transfer options. At an agent location or by phone, your transfer could be delivered in minutes — at higher cost. Your cheapest options could take five days or longer, depending on the country.
While delivery speeds vary by bank, your recipient would wait up to a week to receive their money.
Winner: Western Union
Both Western Union and your typically US bank will take many days to deliver an international money transfer. However, Western Union offers expedited service that could shave that time down to minutes, depending on where you’re sending it.
| Payment Methods | Minimum and maximum transfers | Delivery methods | Transfer speeds | Countries and currencies | |
|---|---|---|---|---|---|
| Western Union | Bank account, credit or debit card, cash | $1 minimum; maximum is $50,000 | Bank transfer, cash pickup, e-wallet | Varies from minutes to 5+ days | 200+ countries |
| Major US bank | Bank account | Varies by bank | Bank transfer | Varies from 3 to 5 business days | Often 200+ countries |
WorldRemit: First Transfer FREE
Depending on your transfer method and speed, Western Union could offer you lower fees and better exchange rates than your typical US bank will. It also offers your recipient ways to get your cash beyond a bank account.
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
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