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Western Union International Money Transfer Review

Sending money overseas? We outline the pros, cons and limitations of Western Union

Updated 24 March 2022
Western Union is the world’s largest money transfer company, but for most New Zealanders, it’s probably recognisable as a logo on the numerous forex booths all over cities. Western Union offers money transfers online via its website, its app or in-person at an affiliated branch. Customers can choose to send their money directly to a recipient’s bank account, or to a specific Western Union branch overseas. Western Union charges an upfront fee and an exchange rate which will vary based on the delivery.

This review of Western Union is aimed at anyone in New Zealand planning to send money overseas. We cover:
Know this first: Western Union is a highly profitable American company, and is the oldest money transfer service in the world. Several internet-based services continue to challenge their market position and service with cheaper fees and better exchange rates. We overview these here.

MoneyHub Founder Christopher Walsh shares his experiences with international money transfers:

"I believe international money transfers can be bad value for money or outstanding value for money. MoneyHub routinely relies on overseas experts (mostly in engineering, graphic design and programming). I make dozens of international money transfers every year to pay the invoices for work done.

Ongoing research and comparisons conclude that Wise is the cheapest option for repeated transfers. It also offers a far superior customer experience and service than any other provider, online or offline. On the other hand, the banks are uncompetitive, legacy platforms like Western Union are expensive and online rivals come and go with introductory offers but may not be cheaper overall.

Whatever you decide to do, I suggest reading our international money transfers guide to see the latest research and results".
MoneyHub Founder
Christopher Walsh

Western Union – Pros and Cons

Pros
  • The widest choice of foreign currencies – Western Union offers destinations unrivalled by other money transfer businesses. However, for most people, being able to send money to remote destinations isn’t a priority. What matters is the processing cost and the exchange rate.
  • Payment options: Western Union conveniently offers payment by Visa or MasterCard (credit and debit), as well as bank payments (via POLi). 
  • Speed: For most countries, a transfer takes 1-2 business days if money is sent to a bank account, or within 10 minutes if sent to a Western Union collection point.
  • You can send physical cash – this may be convenient for some, but the costs are high compared to online alternatives.

Cons:
  1. Uncompetitive foreign exchange rates: As per our study, Western Union ranked behind Wise formerly TransferWise, CurrencyFair and Orbit Remit. This means the cost of sending money with Western Union is more expensive than market-leader TransferWise. 
  2. Two exchange rates, depending on the process: Money transfers direct to a customer’s bank account or virtual wallet are, in most cases, significantly lower than sending the money to a Western Union location. 
  3. Complex pricing: Generally, Western Union isn’t as transparent as other providers, such as Wise. There are many factors which affect the final cost of a transfer. 

Western Union in a Nutshell:

  • Currencies: Over 100, including all the most popular currencies
  • Payment options: Debit card, credit card, POLi and cash (via a Western Union kiosk).
  • Delivery options: Bank deposits, virtual wallets and collection at a Western Union-affiliated branch
  • Fees: Costs range - Western Union provides the exchange rate, the transfer fee and the “Estimated Total Receiver gets” (which is the total local currency amount) via its website. This is the best information to compare with other money transfer services.
  • Transfer limit: Usually NZ$5,000 per transfer, but this may vary by the destination country.

Our View: Before using Western Union (or any other money transfer service), compare other providers

With money transfer services, two costs affect either how much you pay in NZD or how much the recipient gets in local currency.
  1. The transaction fee is usually made up a service fee by the company transferring the money, combined with a payment method fee. While POLi and bank transfers are often free, some money transfers charge them.
  2. The exchange rate is equally important. In the case of Western Union, sending money to a kiosk gives a lower exchange rate than if you send it to a bank account. But, conversely, Western Union (and other specialist money transfer companies) will often beat exchange rates offered by the banks.

To get the best money transfer deal, we suggest:
  1. Avoid paying by credit card or debit card – this will increase the upfront fee. Banks transfers from your account to the money transfer’s account are preferable; you’ll be provided with a reference so the money can be converted and transferred overseas.
  2. Compare the rates and total transfer cost – you want the highest exchange rate as possible in relation to the New Zealand Dollar. For example, for the US Dollar, a 0.67 rate is better than a 0.66 rate as you’ll transfer 1 US cent more for every NZ$1 you send. The higher the exchange rate, the more money your recipient receives (or, the less you’ll pay if you’re sending a specific amount of foreign currency, i.e. PHP 10,000 or INR 50,000).

Western Union Money Transfers - Frequently Asked Questions

How much money can you send using Western Union?

The limit for most transfers is NZ$5,000.

​What payment methods does Western Union accept?

Western Union accepts Visa or MasterCard credit or debit cards – a New Zealand bank must issue these, however. Western Union also allows customers to pay using internet banking via POLi. There is a fee for using a credit card, which is around $4 per transfer.

Does Western Union have an app?

Yes – the functions are similar to the website, allowing you to pay with card or using your bank account. You can download the Apple and Android versions.

Know this: The Western Union app allows you to send money, but it doesn’t receive money. Recipients of any money transfer you make using the app will collect or receive the funds as you request (i.e. at a Western Union branch, or directly into a bank account).

​Is Western Union the cheapest money transfer service?

It’s always best to compare before making a money transfer, as the best provider will save you money. The cheapest service for a NZ$1,000 transfer to India (INR) or the Philippines (PHP) can save the recipient as much as NZ$20 or even $50, which can be quite a saving. Our money transfer comparison guide explains everything in detail.

Can the name of the recipient on a Western Union money transfer be changed?

No – the name cannot be changed, nor can the recipient bank account details. An online money transfer can be cancelled only if:
  1. The receiver has not collected it in the destination country, or 
  2. If the funds have not been credited to the recipient’s bank account or mobile wallet, or 
  3. If the payment was not completed due to technical issues. 
To cancel any transfer, you’ll need to contact Western Union.

​What is the Western Union exchange rate?

How much foreign currency the New Zealand Dollar buys changes all day, every day. To know how much, visit Western Union’s calculator. As a comparison, it’s worthwhile comparing the amount to Wise, which our money transfer comparison report concluded was price-leading in New Zealand.

​How long it takes for Western Union transfer to complete?

It can take up to three business days, but the most popular money transfer countries (for example, India, The Philippines, Brazil) complete same-day or within one working day.

Must-Know Tips for Large International Money Transfers

Small differentials can make a HUGE difference – a 1% better exchange rate on a $5,000 transfer makes a $50 difference. The best exchange rate AND the lowest fee/commission makes all the difference.
  1. Benchmark the rate - use our Currency Converter to get a mid-market exchange rate (this is the mid-point between the wholesale 'buy' and 'sell' price). Enter the amount of NZD you want to send and the currency you want to deliver it in, to get an idea of the total NZD cost.
  2. Compare this to the quotes by banks and/or foreign exchange companies. This will give you an indication of which quote is the best. It's rare that a bank will actually offer the best deal, but knowing what they will charge is useful, and if the bank is willing to negotiate, it could be the winner.
  3. Get quotes around the same time – as rates change every minute, you can only compare effectively if you get your quotes on the same morning or afternoon.
  4. Typically, the less you transfer, the worse the exchange rates you will get – if you’re using a provider operating offline, such as a bank or specialist broker, calling to negotiate exactly what you need to transfer can lead to a better rate.
  5. If you’re flexible with time, you can lock in a rate later. This means you may end up with a better exchange rate if the NZD gets stronger, or less foreign money if it weakens. There is no way of knowing the future value of the NZD so if you want to be certain, locking in an exchange rate sooner rather than later is the best approach.
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