When you think of money transfer services, MoneyGram might not be the first name that comes to mind. But that’s not because it doesn’t have tremendous standing in the industry. In fact, MoneyGram is the second-largest money transfer provider in the world.
MoneyGram International got its start as Travelers Express Co., Inc. back in 1940 in Minneapolis. The company quickly transformed into one of the world’s largest money order and electronic payment processors. In 1998, Travelers Express parent Viad Corp. bought international money transfer company MoneyGram Payment Systems, Inc. — a subsidiary of a parent company that also owned Western Union.
Travelers Express and MoneyGram Payment Systems Inc. banded together and formed MoneyGram. Over the next few years, it became a brand that was trusted and recognized worldwide. In 2004, Viad sold MoneyGram — which resulted in it becoming the standalone, publicly-traded company it is today.
MoneyGram offers online and in-person domestic and international money transfers, as well as mobile phone top-ups, bill payments, money orders and prepaid-card loading — making it a major player in the world of online money transfers.
- Pros and Cons of MoneyGram
- MoneyGram Services Overview
- Where Can You Access MoneyGram Services?
- Can You Trust MoneyGram Services?
- MoneyGram vs. Competitors
- When Should You Opt For Moneygram Over Other Transfer Services?
Pros and Cons of MoneyGram
It helps to examine the pros and cons of a service before diving in, just so you know what to expect. Here are some of the advantages and drawbacks of using MoneyGram:
|Pros and Cons of MoneyGram Service|
MoneyGram Services Overview
To give you an idea of whether MoneyGram might be the right choice for you, here is some information on its fees, benefits and drawbacks.
Learn More: Your Complete Guide To Sending Money Online
MoneyGram fees depend on various factors, including the destination of the money, how much you’re sending and method of payment. Choosing to pay with a U.S. checking account can result in lower fees, but if you pay with a credit or debit card, you can expect the fees to be slightly higher.
What Is MoneyGram Best For?
MoneyGram has a vast global network, with about 350,000 agency locations in more than 200 countries. Their service is best for people who want a wide variety of money transfer options, either online or in-person to domestic and international locations. It’s also beneficial for people who need to make an immediate transfer because many MoneyGram transfers complete within minutes.
In addition, MoneyGram offers a MoneyGram Plus Rewards Program, which offers these benefits:
- Faster transactions
- Notifications when money has been picked up
- Personalized exclusive offers
What Is MoneyGram Worst For?
Anyone who wants to make an online transfer of more than $10,000 at a single time — or within one month — won’t be able to do so with MoneyGram. Also, you can only make transfers online or in-person, so making transfers by phone is not an option.
Where Can You Access MoneyGram Services?
You can access the MoneyGram service by making a transfer online or by visiting a MoneyGram branch. To find the nearest branch, use the MoneyGram locator tool.
Required Information To Send Money
Whether you’re sending money online or completing an in-person transaction, you’ll need this information at the ready:
- Government-issued ID, such as a driver’s license
- Recipient’s full name, which matches the name on the person’s identification
- Recipient’s location
- Transfers to bank accounts require recipient’s bank name and account number
- Transfers to mobile wallets require recipient’s mobile number and, if applicable, international dial code
Required Information To Receive Money
When you’re receiving money in person, you’ll need the following information:
- A valid form of ID, such as a driver’s license or passport
- The reference number associated with your transfer, which you can get from the sender
- Completed receiver form, which is available at the pickup location
Can You Trust MoneyGram Services?
You can probably trust MoneyGram more now than you could a couple of years ago, thanks to a $125 million penalty that the company was assessed by federal authorities in 2018. According to The Washington Post, the Federal Trade Commission and Department of Justice alleged that MoneyGram didn’t do enough to prevent fraudulent transactions within its service. The FTC found that at some MoneyGram locations, roughly half of the transactions were fraudulent.
As part of a deferred prosecution agreement with the Department of Justice, MoneyGram has agreed to do the following:
- Within two days of receiving a complaint about an identified fraudster, the fraudster will be blocked from using MoneyGram’s transfer services
- Government-issued identification will be required by anyone sending or receiving money transfers
- Money transfers originating from the U.S. will be monitored
- Agents connected to a high rate of fraudulent transactions will be disciplined, restricted or terminated
MoneyGram’s advice to avoid money transfer fraud is to never send money to someone you don’t know — for any reason. Also, be wary of wiring money to someone claiming to be a relative in crisis. If you can’t verify the person’s identity, don’t send the money. Once you send a wire transfer, the funds are gone and you will not get them back.
MoneyGram vs. Competitors
When it comes to transferring money, MoneyGram might not be your cheapest option. But determining exact fees is impossible without knowing the details of your specific transaction, such as where and how you’re sending the money and in what amount.
Fortunately, MoneyGram offers a way for you to estimate fees on money transfers, so you’ll have an idea of what each transfer will cost you. Here’s a look at some of the options to send money domestically and internationally via a transfer service:
|MoneyGram Transfers vs. Competitor Transfers|
|Money Transfer Service||Types of Transfers Offered||Transfer Maximums||Transfer Speed||Transfer Fees|
|MoneyGram||Domestic and international transfers online and in-stores||$10,000||Many within minutes||$7.99 and up|
|Western Union||Domestic and international transfers online, by phone and in-stores||$500-$10,000 or more, depending on service||In minutes to up to five business days, depending on service||99 cents and up|
|TransferWise||International transfers online||Varies by origin and destination; $1 million if sending from the U.S.||In minutes to up to two business days||Varies by country; no domestic transfers offered|
|XE||International transfers online or by phone||$500,000||Majority of transactions completed same-day||None; no domestic transfers offered|
|Xoom||International transfers online||Up to $120,000, depending on sender’s level||Minutes to a few days||Varies by country; no domestic transfers offered|
When Should You Opt For MoneyGram Over Other Transfer Services?
Although a variety of money transfer services offer international transfers, very few offer domestic transfers. However, MoneyGram is one of the few that offers these transfers. If you don’t need to complete transfers by phone and you plan to complete money transfers on a regular basis, you might want to opt for MoneyGram over other services.
By using this service, you can also join the MoneyGram Plus Rewards Program, which can help you save money. For example, once you join, you’ll receive a fee discount of 20% on your second transfer and 40% off every fifth transfer thereafter, with the ability to get even more benefits if you upgrade to Premier status after your fifth transfer. So even though MoneyGram’s fees might not be the cheapest initially, joining this program can help defray some of the expenses — especially if you’re a frequent user.
More From GOBankingRates