Keep in mind that the cost of transferring money using services like MoneyGram and WesternUnion is the sum of the "Fee" and the discount in the Exchange Rate given to you compared to Dollar CCL for example. While WesternUnion might give you a better exchange rate, they charge a higher fee. Moneygram used to charge no fee for certain types of transactions and very low fees for others, BUT the exchange rate they give you was much lower compared to WesternUnion. Now, it seems like Moneygram is charging a fee for transferring to a digital wallet, BUT the difference in the exchange rate between WesternUnion and MoneyGram has narrowed a bit. In other words, the total cost of transferring is basically still the same. You're just paying more in fees, but paying less in exchange rate difference.
To determine which Money Transfer Service costs less to send, divide what the recipients will get by the amount you will pay in total with the fees included. (Keep in mind that the fees and exchange rate differ based on payment method and receiving methods, so make sure you are comparing the same selections in both service providers.)
EffectiveExchangeRate After Including Fees = (SendAmount * ExchangeRate) / (SendAmount + Fees)
1. Higher advertised Exchange Rate, with fee
Let's assume you're sending $1,000 with $10 Fee and ExchangeRate of 1,313.
Recipient gets: 1,313,000 with Sender Paying $1010.
The Effective Exchange Rate Including Fees = (1000 * 1313) / (1000 + 10) = 1300
2. Lower advertised Exchange Rate, with NO fees
Let's assume you're sending $1,000 with $0 Fee and ExchangeRate of 1,300.
Recipient gets: 1,300,000 with Sender Paying $1000.
The Effective Exchange Rate Including Fees = (1000 * 1300) / (1000 + 0) = 1300
3. Very high advertised Exchange Rate, with very high fees
Let's assume you're sending $1,000 with $50 Fee and ExchangeRate of 1,365.
Recipient gets: 1,365,000 with Sender Paying $1050.
The Effective Exchange Rate Including Fees = (1000 * 1365) / (1000 + 50) = 1300
As you can see, all three examples have the same Effective Exchange Rate,
Basically MoneyGram is going from example #2 to #1, and WesternUnion being representative of #3, assuming Dollar CCL being around 1370. Obviously that's not the current exchange rate.
