MoneyGram is one of the largest money transfer companies in the world. It comes second after Western-Union. It offers services like money transfers, bill payments, and money orders to people who do not have a bank account or don’t want to use their regular bank account.
While we live in a world of digital payment, paper forms of payment like money orders are still competitive and preferred by many. This is because it’s safe and convenient to use due to the less identification required making transactions.
It’s fair to note that MoneyGram has also evolved as you will find MoneyGram mobile app allowing you to send and receive money in more than 200 countries in the world. For those using the MoneyGram, one question you have often asked yourselves is;
Where can I cash a MoneyGram money order?
Cashing MoneyGram money order is quite convenient as several places offer this service. For instance, banks, credit unions, convenience stores, grocery stores, pharmacies, supermarkets, check-cashing outlets, bus stations, just to mention a few.
MoneyGram boasts of having more than 35,000 stations all over the world for pickups. You are advised to refer to your local yellow page for the nearest check cashing location.
How Does MoneyGram Transfer Work?
MoneyGram is a payment transfer provider that acts as an intermediary between the sender and the receiver.
The prime objective of the platform was to facilitate international money transfers to third-world countries. But with time, they diversified and now allow bank account transfer, which serves the developed economies too.
There are four types of transfer you can make while using MoneyGram, these include;
1. In-person transfer
This was the original business model of MoneyGram before pivoting. If you need the recipient to have the funds instantly, this is the option to use. It takes up to 10 minutes for the funds to be available on the other side.
To send the money, you need to locate the nearest MoneyGram agent station. You will be required to fill out some information; this will include your names, recipient’s name & location, and the amount you want to send.
You will be required to show some identification, after which an eight-digit code will be given to you. Send this code to the receiver; the money transfer may take up to 10 minutes. The waiting period may vary depending on the location.
The receiver will be required to visit the nearest MoneyGram agent and provide the 8-digit code together with some identification. Therefore, it is crucial to ensure the recipient’s information you fill out is accurate to avoid any misunderstandings.
2. Online Transfers
This is one option MoneyGram had to include to stay relevant and competitive. If you feel lazy to go to the nearest MoneyGram stations, you can use the online money transfer option.
The process is similar to that of in-person transfer. You will be required to fill out your information and the receiver’s names, location, and the amount you want to send. You can pay using a credit or debit card. It is essential to note that MoneyGram only accepts Visa and MasterCard.
If you reside in the USA, you can use a domestic checking account when sending money overseas. MoneyGram will verify your information before initiating the transfer.
Your funds will be placed on hold if they are unable to verify your information. Upon verification, an 8-digit code will be issued to you. You then should pass it to the recipient.
3. Bank Account Transfer
This option allows you to send funds directly to the recipient’s bank account. The downside of this option is the hefty fee charged per transfer.
4. Transfer to An Inmate
You can also send money to an inmate if you are based in the USA. The process of sending money is the same as you will need to fill out all the relevant information, including the inmate’s correctional ID.
Some correction facilities that accept MoneyGram money transfer include;
- Texas Department of Criminal Justice
- Federal Bureaus of prisons
- Florida Department of Corrections
- California Department of Correction
5. Mobile Wallet Transfer
This is a relatively new alternative to sending money using MoneyGram. It allows you to send funds to the mobile wallet of the recipient. Examples of supported mobile wallets include M-pesa and Econet, both of which are located in Africa.
Information Needed To Send Money Using MoneyGram
For securities purposes, you will be required to provide some information, whether transferring money in-person or using the online option. These include;
- Recipients full names as they appear on the ID.
- Government-issued ID.
- Recipient’s location.
- Bank name and account number for bank transfers.
- Mobile numbers, international dial code, and recipient’s name for all mobile wallet transfers.
Information Needed To Receive Money Using MoneyGram
The receiver will need the following info to get the funds;
- Verifiable ID.
- An 8-digit pin associated with the transfer.
MoneyGram Exchange Rates And Transfer Fees
MoneyGram charges some fee per transaction to facilitate funds transfer. The amount of fee charged may vary depending on different factors, such as;
- Amount of funds being transferred.
- Type of money transfer- whether online or in-person etc.
- Recipient’s location.
- The urgency of the transaction.
The exchange rate varies depending on the payment option you choose. MoneyGram may also charge a markup on the mid-market exchange rate. This is rate available online, and it’s the rate MoneyGram receives when they buy currency.
Financial institutions frequently add a markup to their exchange rates, which they would then retain as profit.
Alternatives To MoneyGram
While MoneyGram is an excellent option to send money internationally, some may have different opinions regarding the platform’s convenience. If you are one of them, here is a list of substitutes to MoneyGram.
PayPal is the parent company to Xoom, and they offer both local and international online payment services. Both the sender and the recipient will need to have a PayPal account to make transactions.
2. Western Union
Western Union is arguably the largest international money transfer service provider. They have a solid background starting from the 19th century. One thing worth noting about Western Union is their not-so-favorable exchange rates.
Payoneer also offers international transaction services although to a specific group of customers. Services offered by Payoneer will best suit companies and contractors with international clients.
Skrill is based in London and was established in 2001. It is another platform you can use to make digital payments both international and locally. You can send money from one Skrill account to another using their mobile wallet systems.
5. XE Money Transfer
XE is well-known for publishing mid-market exchange rates for foreign currencies. However, they also provide international transfers.
Wise has an extensive network of banks across many countries in the world. This enables them to pay out directly through their local banks in the destination country. By doing this, they cut the middlemen, usually the banks, thus reducing hefty fees charged by banks.
Ria money transfer was founded in 1987 and currently offers international money transfers to more than 140 countries worldwide. The organization has a well-established network which makes it easy for cash pickup.
8. Currency fair
CurrencyFair is a peer-to-peer online currency exchange marketplace that offers international transfers in more than 20 global currencies. Using this platform helps you save up to 90% compared to what you would have spent while using banks or brokers.
Do you want to send money to Africa? WorldRemit would be your best option. More than half of their transfers go to Africa. The organization is based in Landon, and it was established in 2010.
Advantages Of MoneyGram Services
Here are some reasons why many people prefer to use MoneyGram services.
- You can send money or receive money from more than 200 countries.
- It’s a flexible option; you can choose to send money to a mobile wallet or bank account.
- Instant money transfer, usually in minutes.
- Offers fee discount on transfer fee to their loyal customers.
- It’s convenient; they have more than 350000 locations across the globe.
Disadvantages of MoneyGram services
Some of the reasons why some people are reluctant to use Money Gram services include;
- Due to their market dominance, MoneyGram tends to charge unreasonably high fees.
- They don’t have the best customer services.
- They have a limit of $10,000 for online transfers every 30 days.
Services Offered By MoneyGram
Some services offered by the MoneyGram include;
MoneyGram allows you to pay your bills to more than 14,000 companies in the USA. Some of the bills you can pay using MoneyGram include healthcare bills and child support payments.
This was the first service offered by MoneyGram when it was established. Unlike checks, money orders are reliable; they never bounce as they are prepaid for.
MoneyGram allows you to top up prepaid mobile phones from over 350 mobile carriers in over 100 countries worldwide. It’s a great initiative to ensure that you stay in touch with your friends and relatives abroad.
MoneyGram operates to assist clients in making international payments through a variety of channels. With more than 350000 kiosks spread across 200 countries, cashing your MoneyGram money order shouldn’t be a problem. You can always refer to the yellow page for the nearest station near you.
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