A review by Danny Wirken

About Western Union

The use of money grams like Western Union is preferred to sending personal bank checks through mail (which is somewhat safer since no one can just cash these); because the receiver is assured that he will be able to receive something. Money orders are prepaid and cannot bounce. The only reason payment will be withheld is if the sender advices that payment be stopped.

Sending Money Orders is also less costly and less complicated than sending funds through bank to bank transfers. Fees are minimal and the recipient can easily obtain the funds by going to any authorized agent, instead of only being able to withdraw the money through a specific bank.

Despite its obvious benefits, the use of money orders in transmitting funds for personal use or for payment of services is gradually being discontinued. In recent years, increased proliferation of counterfeit money order forms and more incidences of money order scams have been reported to the authorities. Verification processes are now more stringent, with agents asking clients to present more than just the money order form but identification cards, signature specimens, and to some extent, give details of the sender (address, relation to receiver, etc).

Another downside is that some agencies or banks refuse to honour money order forms that have been damaged in the mail. This is especially true of the routing number, which is located at the bottom of the money order form, has been affected and the processing machine is unable to decipher the information. A long and tedious process must then be applied in order for the document to be verified.

Western Union is probably the biggest and oldest company that provides money order services to consumers. Established in 1851 by a group of businessmen from New York, the company was first known as “The New York and Mississippi Valley Printing Telegraph Company.” They changed their name to “Western Union Telegraph Company” after they have acquired several competing telegraph systems in the western United States. The company first started transmitting money in 1871 through a service called “Western Union Money Transfer” which was so popular this became their primary service.

Western Union, no longer requires the recipient of money via money order to present a physical receipt when claiming funds. It is often enough that receiver is able to quote the transaction code or routing number, and of course, present the mandatory identification documents (ID card, license, and passport) and oftentimes, answer a security question.

How Does It Work?

The money transfer service offered at Western Union’s website offers consumers and businesses the ability to send money using a Visa or MasterCard credit or debit card. Receivers can pick-up funds at more than 245,000 Agent locations in over 200 countries and territories worldwide within minutes, but this does depends on the hours of operation of the location of the receiving agent. In the UK, the maximum amount of money you can send online within a revolving 30-day period is £999.99. The amount is relatively within the same level depending on location. Here are some of the basics to keep in mind:

Senders:

• Senders must present the required document which show evidence of identity for amounts over £600.
• For amounts of £2,000 and over, Senders must present 2 forms of

Documents which show evidence of identity.

• It is their policy that AMEX locations only accept cash up to $1,000 US dollars or local equivalent. Any higher amount sent will have to be paid using an alternative payment method (card or check). Identification will be required for every transfer.

Receivers

• Maximum payout amount is US $10.000 or local equivalent per person, per day.
• Payouts may be provided by check if an Agent has insufficient cash. Checks can be cashed at Lloyds TSB Banks during regular banking hours.
• Receivers must present acceptable document(s) showing evidence of identity .
• For payouts of £2,000 and over, receivers must present 2 acceptable documents showing evidence of identity.

The Pros and Cons of Western Union

Western Union money order is the same as a banks online wire transfer, except you are able to send money to any Wester Union location without needing a bank account . The person receiving on the other location shows up with the relevant ID to collect the money. It sounds simple, but Western Union does charge a “transfer fee”. The “transfer fee” that Western Union charges per transaction can be expensive. On the website’s homepage, you’ll find a box on their homepage where you can enter in sample information to find out what your fee will be. I did a test money transfer from the United Kingdom to the Switerland for £500 and the site told me I would have to pay a fee of £37. It seems that the distance to transfer the money doesn’t mean you will pay more because I did another test one to Sri Lanka for the same £500 and it came back as costing just £25 for their transfer fee! In any event, avoid sending money via Western Union with fees that are that high. If the person waiting to receive the funds just wait a few days longer, a bank transfer is probably the better option, costing a lot less money.

The Lowdown

Good Points

• Lots of locations worldwide.

Bad Points

• Many, many complaints about simply terrible online service. Unfriendly.
• They do irritating and time-consuming things like hold your money until more documents are faxed to them, like a photo i.d.
• Extremely expensive and overpriced considering there are cheaper and better alternatives out there.
• Online transfers get put on hold for ages, which is bad for those having to make long-distance calls, or are calling from hotels.
• The online service is difficult, ineffective and worst of all, disorganized, to the point where they have been known all details of your transaction. Appaling!!

Verdict: Not Recommended. Over-priced for the low quality of service.

http://www.westernunion.com