MoneyGram is the second largest money transfer provider in the world with over 350,000 agents in 200 countries¹. MoneyGram provides in-person and online transfers, and often promote their low transfer fees. But before you move your money with MoneyGram, make sure to compare rates with Wise to see if they really are saving you money.
This guide is to help you get familiar with MoneyGram, and to look at the benefits and limitations of transferring money with them. To be specific, you’ll read about:
When sending your money back home to family and friends, it is important to shop around to make sure you use a provider that gets you the most bang for your buck. Often providers can hide fees and charges where you can’t see them, so what your recipient gets is way less than you hoped. Wise makes sure you are informed about your options, even if that means you use other service providers.
MoneyGram makes it easy to receive money in India. You can receive money in two ways:
Let’s take a look at how it works if you are receiving money from abroad.
If you are picking up cash, you can do so at any MoneyGram agent location. Before you go, check your local agent’s opening hours. To receive money, make sure you have the reference number from your sender and a valid photo ID. Make sure that the name on the transfer matches the name on your photo ID.²
You may be required to complete a simple receive form with the reference number once you are there. Submit the form and ID to the MoneyGram agent to receive the sent amount in rupees. MoneyGram also allows for money to be sent directly to your bank account. In that case, the money will be automatically deposited to your account.
There are no charges or fees for receiving money through MoneyGram.
For a cash pickup, you can expect the transfer to be ready within 24 hours after the transfer was sent successfully.³
If you’re receiving the money in your bank account in India, the money can be there in as little as 3 hours, subject to banking hours and approval by MoneyGram’s verification system. This can also exclude weekends and holidays, but it will depend on your specific transfer.⁴
One of the money transfer options that work with your busy life is Wise. Using smart technology, Wise lets you move your money to loved ones completely online and straight from your phone. With the Wise app, you can send money anytime from anywhere. Over 4 million people around the world trust and use Wise.
You can send money using the MoneyGram website from your computer, or you can head down to the MoneyGram agent location near you. Currently, it is not possible to send money internationally from India with MoneyGram.
To send money using cash, head down to your nearest MoneyGram agent. Bring along your ID, your recipient’s full name, and the amount you want to send. Make sure you bring enough to cover the fees, which we will cover in a later section. If you are sending it to a bank account, bring the recipient’s bank account information.
You may need to fill out a send money form when you arrive at the agent. Once that is complete, give your form, details and applicable fees to the agent to process your transaction. You will receive a reference number which you will need to give to your recipient, especially if it is a cash pickup⁵.
To send money abroad with MoneyGram online, follow these steps-
Note that if you are in the UK and you are sending more than 800 GBP, you will need to upload a government ID to comply with anti-money laundering rules. Your transaction will be on hold until this is complete.⁶
If you are using a debit card, you may have daily limits by your bank on how much you can send. Credit cards may have the same, and the credit card company may also charge you a cash advance fee and interest charges. You may find it cheaper to use your debit card or bank account.
There are transfer limits for India, and they depend on what country the funds are coming from. If you are in the US, you are capped at sending $7,500 USD per transaction to a bank account⁷. If you are in the UK, that is £6,000 GBP⁸. You can check the transfer limit per your country on the MoneyGram fees estimator.
Cash payout to Indian nationals or residents is capped at ₹50,000 INR. If you would like to send more than that, it is suggested to send a bank deposit (keeping in mind the limits).⁹
MoneyGram has different transaction fees depending on how much you are sending and your payment method. That in turn also affects how quickly your transaction goes through. The fees are also added on to the amount you send, not deducted from it.
If you are sending $1000 USD to India:⁷
| Payment Method | Fee | Time to Process |
|---|---|---|
| Bank Account | $0 | 3-4 Business Days |
| Credit/Debit Card | $3.99 | Minutes |
| Cash at a Location | $7.00 | Minutes |
MoneyGram also sets their own exchange rate. This is lower than the mid-market exchange rate, which is the true exchange rate that banks and money service providers use themselves. For example-
| $1 | $1000 | |
|---|---|---|
| MoneyGram Exchange Rate | ₹69.11 | ₹69,110 |
| Mid-Market Exchange Rate | ₹69.68 | ₹69,680 |
| Difference | -₹ .57 | -₹570 |
Data collected on May 22, 2019
Part of MoneyGram's business model is to take a cut from each transaction by giving a weaker exchange rate than you see on Google. While it may seem like a difference of just a few cents, that can start to really add up when sending a few hundred dollars.
On the other hand Wise always offers the real exchange rates , so you’ll never have to second guess the exchange rate you get- the rate you see on your transaction is the one that you see on Google.
MoneyGram is quick compared to other service providers, and depending on how the recipient will pick it up, the money is ready anywhere from 3 hours to 3-4 days if sent by bank account.¹¹
When your money transfer is complete, you will receive an email letting you know that the money is ready for pickup. The email will contain the transfer reference number which is needed for the recipient to pick up the money with a valid ID. You can also track the transfer on the MoneyGram website with the reference number and last name.
MoneyGram provides a basic FAQ page on its site as well as toll-free customer service numbers to reach by phone. You can also email them at customerservice@moneygram.com for issues with your transaction.
MoneyGram has received a low score by customers on Trustpilot.com with a number of unsatisfied transactions¹¹. Wise has over 54,000 excellent reviews on TrustPilot. And while MoneyGram and Wise both offer fast transactions so your recipient has their funds faster than most other services, Wise is a completely online process. It also allows for transactions to be fulfilled on holidays or weekends, whenever is convenient for you.
While MoneyGram does appear like quite an attractive option upfront, the costs of transferring with them can add up. Let’s look at the charges and the exchange rate difference on the previous example of $1000 USD sent to India:
| Payment by Credit/Debit Card | Payment by Bank Account | Payment by Cash | |
|---|---|---|---|
| Amount to Send | $1000 | $1000 | $1000 |
| Fee | $3.99 | $0 | $7.00 |
| Recipient gets | ₹69,110 | ₹69,110 | ₹69,110 |
| Total cost | $1003.99 | $1000 | $1007 |
| The real charges and fees including the $8 lost in the exchange rate | $12 | $8 | $15 |
In this way, hidden costs, lower exchange rates, and fees really eat into your money. The amount being lost in the transaction ends up being more than it actually appears with MoneyGram. And while MoneyGram can still be a cheaper option than others, it is best to be fully aware of the true costs associated with sending money.
Wise believes in transparency, so whether it is the exchange rate you get or your fees, everything is communicated to you upfront. So you’ll never have to take out a calculator to know how much is really being taken out of our transaction. Before transferring money internationally, always check for the best rates by comparing vs Wise, which can save you a lot of money on every transaction.
Wise can also be the better option when you are moving more than $7,500 USD. The maximum you can send to India is $1 million USD with Wise, so Wise will save you time and money on large transactions. If you do have any questions, feel free to reach out to Wise's customer support rockstars who are always ready to help by phone, email or chat.
Sources used for this article-
1 https://corporate.moneygram.com/about-moneygram
2 http://moneygram.in/how-to-receive-money
3, 5 http://moneygram.in/faq
4,11 https://www.moneygram.com/mgo/us/en/help/faq/sending-money
6 https://id.moneygram.com/?locale=en_GB
7 https://www.moneygram.com/mgo/us/en/
8 https://www.moneygram.com/mgo/gb/en/
9 http://www.moneygram.co.uk/send-money-to-india
10 https://www.trustpilot.com/review/secure.moneygram.com
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Complete guide and overview of fees about Profee, a compelling service for those seeking fast and often cost-effective international card-to-card transfers.
Our guide to EzyRemit worldwide money transfers provides and overview of their fees, how it works, and what you need to know before using it.
Overview of DBS India Remit service that provides remittances to India for DBS account holders in Singapore with a How-to Guide and expected costs.
विदेश से भारत पैसे कैसे पैसा मंगाने के विभिन्न तरीकों के बारे में जानें। आइये इनकी फीस और समय को समझते हैं।
India ke log puri duniya main failey hue hain, and aksar apne India mein family aur friends ko videsh se paise bhejte hain. Aaiye dekhte hain ki videsh se...
Looking to remit to India from abroad? Here's a guide to what's available with Axis Bank and an overview of alternatives that can help you save.
