An Overview of MoneyGram: How It Works

How MoneyGram Works

MoneyGram is an international money transfer company based in the United States. It serves as a medium which can be employed and used to send and receive money by people in all parts of the world.

It is different from a financial institution such as a Bank and this is because it does not accept deposits from individuals. It has a lot of local and regional offices across the world.

Benefits of Using MoneyGram

  1. It is located in all parts of the world – MoneyGram is greatly advantageous and that is because it has offices in various parts of the world. It has over 47,000 outlets in the US and more than 87,000 other outlets in various parts of the world.
  1. It is easy to use – Unlike the lengthy and time-consuming process that is evident in bank operations, MoneyGram can be used by any type of person.
  1. It has a great reputation.

How Does MoneyGram Work?

Getting to understand how MoneyGram works is a good thing as it allows you to be better equipped on how to send and receive money from any part of the world.

MoneyGram can be used to send and receive money from any part of the world. You can simply use the online website of MoneyGram or visit their physical office address to be able to send money.

When trying to send money, all a sender needs to do is to follow the following steps:

  • Visit the website or the physical office address.
  • Fill in recipients name and contact details.
  • Fill in sender’s address and government I.D number.
  • Input the amount to be sent.
  • Confirm sending fees.
  • Choose a preferred method of payment (Cash or bank transfer).
  • Input sender’s bank account details (If using bank transfer).
  • Copy down the control number given by MoneyGram.
  • Send the control number to the recipient.
  • Track your transfer via the online website until it gets to the sender.

On the other hand, for receivers all that is required are:

  • Visit a MoneyGram location.
  • Tender a valid ID card.
  • Tender the control number given by the sender.
  • Fill out some forms.
  • Take the cash.

MoneyGram can also be used to pay utility bills. A lot of stores and businesses now make use of MoneyGram services for payment of certain bills. All you need to provide are the following details:

  1. Company name
  2. Bank account number
  3. Credit or debit card information (If you are using the online platform)
  4. Cash (If you are paying via a MoneyGram location)

The Cost of Using MoneyGram

On the MoneyGram website, there is an estimate fare feature. This makes it possible to determine how much you will be charged for sending money to any part of the world.

When it comes to the exchange rate involved, this is somewhat complicating. MoneyGram charges an exchange rate which is 5% above the mid-market. The exchange however fluctuates and this is due to change in the exchange market. However, the exchange rate is usually displayed to you before you carry on with the transaction.

It is a good thing to have a better understanding of how MoneyGram works. It prevents any sort of issue or that may arise when using the service.