Wise vs Western Union international transfers: Fees, exchange rates and transfer times in 2024

Whether you need to send money abroad for personal or business reasons, choosing the right service provider requires a careful consideration of various factors, from fees and exchange rates to transfer times and security measures.

In this comprehensive comparison guide, we dissect the two most prominent players in the field: Wise and Western Union.

We explore their fees, exchange rates, transfer times, service quality and security measures, all to provide you with the insight to make an informed decision.

(We’ll also be introducing you to TransferGo as a viable alternative offering competitive rates, transparent fee structures, swift transfer times – and higher customer review ratings than both Wise and Western Union!)

So without further ado, let’s begin!

Wise vs Western Union overview

When it comes to international money transfers, both Wise and Western Union each offer specific advantages tailored to diverse user needs.

Wise overview

Formerly known as TransferWise, Wise has gained widespread recognition for its commitment to transparency and affordability.

Offering transfers at the mid-market rate, Wise eliminates hidden fees or markups on exchange rates, attracting users seeking cost-effective solutions for their cross-border transactions.

Western Union overview

Western Union features a global network of over 550,000 agent locations across 200 countries and territories, making it a go-to choice for those who prefer the convenience of cash transfers.

With its extensive reach, Western Union offers accessibility and flexibility, particularly in regions with limited digital banking infrastructure.

Key differences

While Wise and Western Union excel in their respective domains, some key factors do set them apart.

Wise prioritises affordability and transparency, appealing to individuals seeking competitive exchange rates and upfront fee disclosure.

Conversely, Western Union’s strength lies in its extensive agent network, catering to those valuing the convenience and immediacy of cash transfers.

Exchange rates and transfer fees

Cost is a critical factor influencing the choice of international transfer service providers.

Mostly, this comes down to two charges: exchange rates and transfer fees. 

Wise exchange rates and transfer fees

Wise has gained acclaim for its transparent fee structure and commitment to affordability.

Unlike traditional banks, Wise operates on the mid-market rate, ensuring that users receive fair and transparent exchange rates without hidden fees or markups.

By eliminating these costs, Wise provides users with a cost-effective solution for their cross-border transactions:

●  Exchange fees: Wise charges no exchange rate margin, ensuring users receive rates close to the mid-market rate. Instead, Wise makes its money by adding a percentage or fixed fee onto every transfer.

●  Transfer fees: Starting at 0.43%, Wise’s transfer fees vary depending on the currency pair and transfer amount but are generally lower compared to traditional banks.

Just like TransferGo, Wise provides upfront fee disclosure, allowing users to calculate the total cost of their transfer before initiating it.

Western Union exchange rates and transfer fees

While Western Union offers unparalleled convenience with its extensive global network of agent locations, it’s important to note that this convenience often comes at a cost.

Despite its competitive edge in cash transfers, Western Union’s exchange rates are typically weaker compared to Wise, with hidden costs associated with currency conversion.

●  Exchange fees: Western Union applies an exchange rate margin, which is often higher than the mid-market rate, resulting in additional costs for users. As stated on their homepage, ‘Western Union also makes money from currency exchange. When choosing a money transmitter, carefully compare both transfer fees and exchange rates’.

●  Transfer fees: Western Union’s transfer fees vary based on factors such as the transfer amount, destination and payment method. While online transfers may have lower fees compared to cash transfers, users should be aware of additional charges associated with currency exchange and delivery options. As stated on their homepage, ‘Fees, foreign exchange rates and taxes may vary by brand, channel and location based on a number of factors. Fees and rates are subject to change without notice’.

While Western Union provides a convenient option for cash transfers, those seeking a more cost-effective and transparent solution will likely find the Wise and TransferGo alternatives more compelling.

Service quality and user experience

When selecting international money transfer providers, it’s hard to overestimate the importance of online customer reviews.

These offer valuable insight into service quality, user experience and overall satisfaction levels, so you can make a more informed decision.

In this section, we compare the performance of Wise and Western Union to assess their service quality and user experience based on existing customer feedback.

Wise Customer Satisfaction

Wise has earned acclaim for its user-friendly online platform and transparent fee disclosure, with both factors reflected in its Trustpilot score of 4.2 out of 5 stars.

Customers appreciate the simplicity and ease of navigating Wise’s interface, which facilitates hassle-free transactions.

Moreover, Wise’s commitment to transparency, as evidenced by its upfront fee disclosure, has gained praise from users who value clarity and honesty in their financial transactions.

In comparison to similar products on the market however, it isn’t all plain sailing. TransferGo surpasses Wise in customer satisfaction with an “Excellent” TrustPilot rating of 4.7/5, making it a more popular alternative with money transfer shoppers.

Western Union Customer Satisfaction

Western Union’s extensive global network of agent locations provides unparalleled convenience for users seeking cash transfers.

However, the lack of transparency in fee disclosure is a notable drawback. Users often find themselves unsure of the total cost of their transfers, as Western Union’s fees are not always clearly communicated upfront.

As stated on the Western Union homepage, ‘Western Union also makes money from currency exchange.

When choosing a money transmitter, carefully compare both transfer fees and exchange rates.

Fees, foreign exchange rates and taxes may vary by brand, channel and location based on a number of factors. Fees and rates subject to change without notice.

This opacity in fee disclosure may lead to confusion and frustration among users, detracting from the overall user experience, hence Western Union’s TrustPilot score of 4/5.

(In comparison, TransferGo offers a dedicated customer support team fluent in nine languages, ready to assist you 24/7 via phone, email, or chat).

Transfer times

Wise money transfer times

Wise prides itself on providing efficient transfer times for swift delivery of funds across borders.

According to Wise, a large portion of transfers are completed in minutes, showcasing the platform’s commitment to speedy transactions.

However, Wise acknowledges that transfer times can vary based on factors such as how quickly your money reaches Wise, verification requirements and currency payout times.

Generally, the time frame for a transfer ranges from a few minutes to up to four business days.

Western Union money transfer times

Western Union offers variable transfer times across its channels, catering to diverse user preferences and requirements.

For instance, transfers processed through cash pickups or mobile wallet transfers typically arrive within minutes, providing instant access to funds.

On the other hand, if users opt for a bank deposit as their payout method, transfer times may extend closer to two days.

Likewise, TransferGo provides various delivery options tailored to users’ preferences. Standard transfers generally arrive within one business day, with the option to expedite delivery for faster transactions, as fast as 30 minutes, or opt for slower transfers with zero fees.

Security and trustworthiness

In the realm of international money transfers, security and trustworthiness are paramount.

In this section, we compare the measures taken by Wise and Western Union to ensure the safety and reliability of their services.

Wise

Wise prioritises security and transparency, establishing itself as a trusted player in the industry. The company is licensed by the UK’s Financial Conduct Authority, ensuring compliance with stringent regulatory standards.

Wise’s commitment to transparency extends to its fee structure, where users benefit from upfront fee disclosure, eliminating surprises and hidden charges.

Additionally, Wise employs robust security measures, including data encryption and multi-factor authentication, to safeguard users’ sensitive information and transactions.

Western Union

With over 150 million customers worldwide, Western Union has built a legacy of trust and reliability in the money transfer industry.

The company is regulated by the New York State Department of Financial Services in the US, ensuring compliance with regulatory requirements.

Western Union’s extensive global network of agent locations further reinforces its reputation for accessibility and convenience. While the company’s fees and exchange rates may vary, users trust Western Union’s established presence and robust security measures, including fraud prevention and identity verification protocols.

Despite criticisms regarding fee transparency, Western Union remains a trusted option for users seeking a reliable and secure money transfer service.

Just like Wise and Western Union, TransferGo also places a strong emphasis on security and user trust, aligning with the industry’s best practices. As a licensed Authorised Payment Institution regulated by the Financial Conduct Authority, TransferGo adheres to stringent regulatory standards, ensuring the safety and security of users’ funds thanks to advanced encryption protocols and security measures to protect users’ personal and financial information, mitigating the risk of unauthorised access or fraudulent activities.

Final verdict

Wise, formerly known as TransferWise, distinguishes itself with a commitment to transparency and affordability. Operating on the mid-market rate, Wise ensures fair exchange rates without hidden fees or markups, further empowered by upfront fee disclosure for informed decision-making. Its user-friendly interface and transparent fee structure make it an attractive option for those seeking cost-effective cross-border transactions.

Western Union boasts an extensive global network of agent locations, providing unparalleled convenience for cash transfers. However, its exchange rates may pale in comparison to Wise, burdened by hidden costs in currency conversion. Despite its legacy of trust, Western Union’s lack of fee transparency may deter some users.

Wise has efficient transfer times, often completing transfers within minutes. Although some transfers may take up to four business days, its commitment to swift transactions remains evident. Meanwhile, Western Union offers variable transfer times, with cash pickups or mobile wallet transfers typically completed within minutes, and bank deposits potentially taking up to two days.

In terms of customer reviews, Wise enjoys a Trustpilot score of 4.2 out of 5 stars, reflecting high levels of satisfaction with its user-friendly interface and transparent fee structure. Similarly, Western Union’s Trustpilot score stands at 4 out of 5 stars, reflecting its extensive agent network but there are also criticisms regarding its lack of fee transparency.

In terms of security and trustworthiness, Wise is licensed by the UK’s Financial Conduct Authority, adhering to stringent regulatory standards and employing robust security measures such as data encryption and multi-factor authentication. Western Union, with over 150 million customers worldwide, also prioritises security, regulated by the New York State Department of Financial Services and employing fraud prevention measures.

Both companies maintain a strong emphasis on security and user trust, although Wise’s upfront fee disclosure may provide users with added transparency and confidence in their transactions.

(However, if you are looking for a seamless alternative with competitive exchange rates, transparent fee structures and swift transfer times don’t forget to check out TransferGo! With our user-friendly interface, commitment to transparency and robust security measures, we are a hassle-free and secure money transfer service trusted by millions of users worldwide!)

FAQs

What are the key differences between Wise and Western Union for international money transfers?

The main difference lies in their focus areas: Wise prioritises affordability and transparency, offering mid-market rates and upfront fee disclosure, while Western Union emphasises convenience with its extensive agent network, particularly suitable for cash transfers.

How do Wise and Western Union compare in terms of exchange rates and transfer fees?

Wise operates on the mid-market rate without hidden fees, while Western Union applies an exchange rate margin and has varying transfer fees depending on factors such as destination and payment method.

What are the transfer times like for Wise and Western Union?

Wise offers efficient transfer times, typically completing transfers within minutes to up to four business days, depending on various factors. Western Union provides variable transfer times, with cash pickups or mobile wallet transfers usually instant and bank deposits taking up to two days.

How do customer reviews and satisfaction compare between Wise and Western Union?

Wise generally receives positive reviews for its user-friendly interface and transparent fee structure, reflected in a Trustpilot score of 4.2 out of 5 stars. On the other hand, Western Union, while praised for its extensive network, faces criticism for lack of fee transparency, reflected in a Trustpilot score of 4 out of 5 stars.

What security measures do Wise and Western Union have in place for international transfers?

Both Wise and Western Union prioritise security, with Wise being licensed by the UK’s Financial Conduct Authority and employing measures such as data encryption and multi-factor authentication. Western Union, regulated by the New York State Department of Financial Services, also emphasises security, including fraud prevention measures.

What is the maximum amount you can transfer using Wise?

Wise allows you to transfer up to 1 million GBP per transaction. However, if you wish to send more than 1 million GBP, you’ll need to conduct the transfer through your Wise account. This entails opening accounts for both the currency you’re converting from and the currency you’re converting to (GBP).

What is the maximum amount you can transfer using Western Union?

When sending directly from your bank account to the recipient’s bank account from locations such as the United Kingdom, France, Germany, Australia, Hong Kong, or the United States, Western Union allows transfers of up to 50,000 USD/EURO (or the equivalent in the local currency).

What details does Wise require for a money transfer?

To facilitate the transfer, you’ll need to provide your own account information along with the following details:

●  The name and address of the recipient’s bank.

●  The recipient’s name and address.

●  The recipient’s account number or IBAN (International Bank Account Number, commonly used for bank account identification).

●  The recipient’s BIC/SWIFT code.

What details does Western Union require for a money transfer?

Here’s a guide Western Union provide for filling out a money order:

●  Payee details: Write the full name of the recipient you intend to send money to. It is essential to do this first to prevent unauthorised cashing if the money order gets lost. Ensure accuracy in spelling, as this information cannot be altered once processed.

●  Purchaser’s address: Fill in your personal details where indicated, such as ‘From’, ‘Sender’, ‘Remitter’, or ‘Purchaser’. This includes providing your full name and address.

●  Signature: Sign the front of the money order; the recipient will need to sign the back to cash it. Ensure your signature is clear and matches the information provided.

● Keep the receipt: Retain the receipt carefully. It serves as crucial documentation in case the money order is lost, damaged, or requires replacement. The receipt will be necessary for tracking and cancellation purposes.

How can I contact Wise?

You can contact Wise on +61 1800 549 837 or via their online help page (https://wise.com/help/).

How can I contact Western Union?

If you’re a UK resident, you can contact Western Union by phone on 0808 234 9168, or you can get in touch with a local Western Union agency here.

Sources

Wise sources

● TrustPilot, Wise review

●  Wise, How long does a transfer take

●  Wise, Pricing

Western Union sources

●  TrustPilot, Western Union review

●  Western Union, Homepage

●  Western Union, How do I send money to a bank account

●  Western Union, Send money to a bank account with a Western Union bank transfer