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Western Union is a union organization that allows its members to make money transfers worldwide. Members can send and receive money through Western Union and earn points while they do so. Points can be redeemed later for transfer fee reductions at a later date. Western Union is known for its fast, easy money transfers and is a useful tool for many Canadians. Let’s explore the details of transferring money with Western Union below.
The minimum amount you can send with Western Union is $1 and the maximum amount is $999, in Canadian currency. The maximum is much lower than the amount you can send through banks which can be thousands and thousands of dollars.
While it is free to join Western Union, it isn’t free to send money. That being said, banks charge a fee to complete money transfers as well. The cost of the transaction fee depends on how the transaction is being processed (credit card, debit, or cash), amount of money being transferred, transfer method (cash or bank to bank transfer), the destination country, and originating country among other considerations.
If you’re sending cash to the United States or the United Kingdom, Western Union will charge you $30 whereas a Canadian bank would charge between $30 and $80. As you can see, Western Union charges the minimum threshold that Canadian banks offer which means you’re guaranteed to get the lowest transaction fee possible on the market. Different destinations can have varying fees, some lower than bank fees and some higher, but it’s worth comparing Western Union’s fee to a Canadian bank’s fee to ensure you’re getting the best deal.
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Yes, Western Union will charge an exchange rate on your transaction on top of the money transfer fee. Keep in mind that banks will do the same, but the rate that Western Union charges tend to be less favourable and fluctuates more frequently. In fact, Western Union typically charges 5% more than the mid-market exchange rate. While you might save on the actual transaction fee, you’re usually losing on the exchange rate.
Money can be transferred with Western Union online, by phone, through an agent, through your bank account, through a money transfer app, at a physical location, via cash transfer, or via international money order.
Keep in mind that these options vary depending on the currency you’re sending and the money’s destination. In addition, money can be sent using your credit card, debit card, or cash. Online transfers are the fastest option, regardless of payment type, especially if you’re sending cold hard cash.
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When you need to transfer money overseas, you’ll be faced with the decision of going with your bank or Western Union. The main differences between the two options is the transfer price, the amount of time before the recipient will receive the money, the recipient collection method, available money destinations and transfer amount limits. Let’s look at these differences in depth.
A bank can send money virtually anywhere around the globe but will charge a hefty fee and less competitive exchange rates in return. In addition, many banks will not send cash, they will only send bank to bank transfers. It can take up to two to five business days for a bank to bank transfer to be fully complete. However, you can typically send larger amounts this way.
Through Western Union, you can transfer money to 550,000 and more agent locations with 100,000 ATMs in over 200 countries around the world. In addition, Western Union can facilitate bank transfers and make funds available in cash within a couple of minutes. Fees tend to be costly, but the sender benefits from more transfer methods and faster delivery.
What is the difference between a bank and a credit union? Click here.
As with all financial decisions, there are advantages and disadvantages involved with all your options. To summarize the contents of this article, let’s explore the pros and cons below.
Sending money with Western Union is best when you don’t need to send a lot of money and are willing to sacrifice cost for high speed. In addition, one might choose to use Western Union over a Canadian bank if the destination is remote, the recipient does not have a bank account at the destination, or they would like to take advantage of ample transfer methods. Either way, its ideal to compare banks and Western Union options before finalizing your transfer.
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