Money orders might seem like a traditional method for sending funds, especially internationally, but they still hold relevance. They offer a secure alternative to cash and personal checks, particularly useful if you lack a bank account. This guide delves into everything you need to know about using Western Union money orders, with a special focus on the Western Union Money Order Fee.
However, before choosing a money transfer method, thorough research is crucial. Money orders can be slower and more complex compared to modern alternatives. Moreover, recipients abroad might face challenges in cashing them.
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Does Western Union Offer Money Orders?
Yes, Western Union facilitates sending international money orders.
A Western Union money order functions similarly to a check, but requires upfront payment. It can be physically delivered or mailed to recipients globally, who can then cash it or deposit it into their bank account. Western Union boasts agent locations spanning over 200 countries and territories.¹
Nevertheless, cashing international money orders can be problematic. Many banks and postal services outside the US might not accept them, and those that do often impose substantial fees or extended processing times.
For international money transfers, Western Union also provides direct money transfer services. You can explore more about how to use Western Union here.
Decoding the Western Union Money Order Fee
There isn’t a uniform Western Union money order fee. The cost fluctuates based on the destination and payment method. Western Union’s website provides a price estimator to help you gauge the potential cost of sending your money.
Crucially, Western Union typically marks up the exchange rate for international currency conversions. Therefore, the advertised fees are not the only cost involved.
Currency exchange is a revenue source for Western Union.¹ This implies you should compare the displayed exchange rate with the mid-market rate (found on Google or other financial platforms) to determine the additional cost from the exchange rate markup.
Western Union Money Order Limits
Money orders are generally intended for smaller transactions.
The standard money order limit is usually around 1,000 USD. While Western Union doesn’t explicitly state their money order limit on their site, it’s likely within this typical range. You can send multiple money orders, but each incurs a separate fee.
For Western Union’s direct money transfer services, you can send up to 3,000 USD without identity verification and increase this to 50,000 USD after verifying your identity online or at an agent location.²
International Money Transfers with Western Union Money Orders: Is it Viable?
While sending a Western Union money order internationally is possible, it might not be the optimal choice.
Money orders are physical documents and must be physically transported, either via mail or personal delivery. International mail can take several weeks, and many non-US banks are reluctant to accept foreign money orders or apply hefty processing fees.
Consequently, your recipient might receive the money order but encounter difficulties accessing the funds.
Western Union does offer quicker online money transfers, but comparing costs beforehand is essential. Western Union gains profit from currency exchange by setting their own exchange rates, which are often less favorable than the mid-market rate.
For instance, if the mid-market rate is 1 USD = 0.85 EUR, Western Union might use a rate of 1 USD = 0.80 EUR, pocketing the difference as profit. This is in addition to their stated transfer fees and the western union money order fee.
Wise for Low-Cost International Transfers
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For international money transfers, consider Wise as a smarter alternative.
Open a Wise account online or via the Wise app on iOS and Android to send money to over 160 countries. Wise uses the mid-market exchange rate and charges low, transparent fees, offering a clear picture of costs upfront.
Wise transparently displays both the amount you pay and the amount your recipient will receive. You can even compare Wise against other providers directly within the Wise app or on their website. This comparison ensures you always see if a cheaper option exists for your specific transfer.
Step-by-Step Guide to Sending Money with a Western Union Money Order
Sending a Western Union money order is relatively simple, but it requires an in-person visit. Not all Western Union locations sell money orders, so verify with your local branch beforehand.
Here’s the process:
Step 1: Visit a Western Union branch and purchase your money order. Be prepared to pay the western union money order fee at this stage.
Step 2: Fill out the money order with the recipient’s details and your information.
Step 3: Deliver the money order to the recipient in person or send it via mail.
You don’t need a bank account, but you might need to present your ID for verification.
Completing a Western Union Money Order Form
Filling out a money order is straightforward. Here’s the information you’ll need to provide:
- Pay to the order of: Write the full name of the intended recipient. Double-check the spelling as this cannot be altered after processing.
- Purchaser’s address: Fill in your details in the section labeled “From,” “Sender,” “Remitter,” or “Purchaser.” Include your full name and address.
- Signature: Sign the front of the money order. The recipient will sign the back to cash it.
- Keep your receipt: This receipt is crucial for tracking, canceling, or replacing the money order if it’s lost, damaged, or requires a refund.
You can often add a brief note for a reference number or reason for sending money.
Tracking Your Western Union Money Order
Tracking a money order is somewhat limited due to its physical nature. However, you can confirm if it has been cashed using the tracking number on your receipt.
Learn more about Western Union money order tracking here.
Canceling a Western Union Money Order and Refund Process
While you can’t technically cancel a money order once issued, you can request a refund if it hasn’t been cashed. If cashed, retrieval of funds is impossible.
To initiate a refund, complete the Money Order Refund Request Form. Refunds are typically processed within 7 business days but might take up to 15 additional business days for mail delivery.³ You will need to pay refund processing fees in addition to the initial western union money order fee.
Here’s a breakdown of refund processing fees:
| Money order amount | Refund processing fee³ |
|---|---|
| Under 5 USD | 0 USD |
| Between 5.01 USD and 99.99 USD | 5 USD |
| Above 100 USD | 15 USD |
A non-refundable research request fee of 15 USD also applies, in addition to the processing fees.³
Where to Cash a Western Union Money Order
Within the US, Western Union money orders can usually be cashed at Western Union agent locations, banks, supermarkets, and check-cashing stores. Many retailers that cash standard checks also cash money orders.
Be aware that not all Western Union locations cash money orders, even if they sell them, and some might charge a fee for this service. Cashing money orders internationally can be challenging, with international banks and Western Union locations being the most likely options. Always inquire about potential cashing fees to understand the total cost after the initial western union money order fee.
Western Union money orders can be a dependable way to send smaller amounts of money domestically, especially for those who prefer non-bank or non-digital payment methods. However, for international transfers, despite being technically feasible, they present challenges due to extended delivery times and potential cashing difficulties.
For sending money abroad, Wise offers a faster and simpler solution. Send money to over 160 countries online with no exchange rate markups and transparent, low fees, making it a potentially more cost-effective and efficient alternative to international money orders and their associated western union money order fee complexities.
Sources
Sources checked 12.09.2024
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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.
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