What to Know Before You Use Western Union for Your Payment Processing

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Western Union

Rating
C
3.3/5
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Pros and Cons of Western Union

Pros

Quick transaction processing
Wide global network
Multiple currency support

Cons

Restricted industries coverage
High transaction fees
Limited merchant services
Stringent security checks
Slower than alternatives

Overview

In this review of Western Union, we examine the company’s extensive range of services, from traditional money transfers to modern financial solutions designed for today’s consumers and businesses. We look at Western Union’s long history as a leader in wire transfers and how it has adapted with offerings such as Business Solutions, mobile payment options through the Western Union app, and prepaid cards as a cash alternative. Our analysis also considers how well their mobile services align with website features, providing a clear picture of the company’s strengths, innovations, and role in the money transfer industry.

International Business Solutions

For businesses, Western Union offers solutions for international transactions. We’ll analyze their risk management and cash management services, as well as their traditional money orders. These services are known for their reliability and convenience in global business operations.

Customer Feedback and Legal Challenges

We’ll take a closer look at customer reviews, discussing both positive experiences and common issues like fraud and customer service difficulties. We’ll also review Western Union’s legal battles and fines to understand how these challenges have impacted the company’s reputation and operations.

Fees and Industry Comparisons

Lastly, we’ll break down Western Union’s fees and rates, comparing them to industry standards and other competitors. This section will help readers understand how Western Union’s pricing measures up in the financial services landscape.

Pros and Cons of Western Union

This review aims to provide a balanced view of Western Union’s services. By weighing their pros and cons, we offer readers a thorough understanding of what to expect when using this long-standing name in money transfer and financial services.

About Western Union

Screen Capture of Western Union Homepage
Western Union Homepage

Western Union is a money transfer and communications company based in Meridian, Colorado. Founded in 1851, Western Union originally rose to prominence as a widely used telegraph service before adding its money transfer feature in 1871. In the late 1980s, Western Union shifted its primary focus from communications to financial services, eventually doing away with telegram delivery entirely. In 1995, the company was acquired by First Data (now Fiserv), another large, Colorado-based financial services company. First Data spun Western Union off into its own company in 2006, and Western Union now operates as an independent entity.

In 2022, Western Union finalized the sale of Western Union Business Solutions, which did most of its B2B payments, to Goldfinch Partners LLC and The Baupost Group, LLC. The resulting company is now known as Convera.

Products & Merchant Services

Payment Processing

Western Union, best known for its wire transfer, money order, bill payment, and gift card services, expanded its offerings in 2010 by launching a Business Solutions department. The company has recently ventured into the mobile payments market with a self-branded app. Businesses can now send and accept international ACH payments online through the WU EDGE service, and the app allows users to schedule wire transfers to most Western Union locations. Additionally, Western Union has introduced “Speedpay,” a sub-brand offering various billing solutions for small businesses.

Prepaid Cards

Western Union provides prepaid cards that can be used for storing funds, making purchases, or withdrawing cash. These cards offer a secure alternative to carrying cash and can be reloaded at various locations or online.

Mobile Services

In line with the digital trend, Western Union has developed a mobile application that mirrors the features available on their website. The app allows users to send money, track transfers, pay bills, and more, all from their mobile devices.

Business Solutions

Western Union offers a suite of services for businesses to streamline international transactions. These include risk management, currency conversion, international payment options, and cash management solutions.

Money Orders

Western Union also provides money orders, offering a reliable and secure method for paying bills and sending funds through the mail, providing a safer alternative to sending cash.

Customer Reviews & Sentiment

Overview of Western Union Feedback

Western Union, a longstanding name in money transfer services, has accumulated thousands of reviews online, with a significant portion expressing dissatisfaction. These negative reviews often stem from individuals who have fallen victim to scams facilitated through Western Union’s services. Given Western Union’s global reach and the nature of its operations, a substantial volume of complaints is anticipated. We encourage users to share their Western Union experiences in the comments section to enrich our collective understanding.

Understanding Seller Fraud through Western Union

Western Union’s process for some wire transfers, which requires minimal identification from both sender and recipient, has been exploited for fraudulent purposes. The most frequent scam involves a seller who, after receiving payment via Western Union, fails to deliver the promised goods or services. Despite the limited identification requirements facilitating such fraud, Western Union has made efforts to educate users on these risks and provide support for fraud prevention and resolution.

Western Union’s Approach to Security and Fraud Prevention

Acknowledging the potential risks associated with unsecured wire transfers, Western Union proactively educates its customers on safeguarding against fraud. The company offers resources and support to help users protect themselves, recognizing that, for many, Western Union represents a critical service, especially for those with limited banking access.

Customer Service Experiences with Western Union

Western Union offers round-the-clock phone support, yet customer feedback indicates challenges in achieving satisfactory resolutions through standard support channels, often necessitating escalation. This aspect of service has impacted Western Union’s reputation, contributing to a “C” rating in customer support quality.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop1
BBB Ratings1
Trustpilot Rating4.2
Consumer Affairs Rating1.5
Our Rating3.3
Average Rating2.5

PaymentPop Rating for Western Union

Negative Feedback

This is the worst company you can ever used to receive money. I spent about six hours on the phone speaking to different Western Union representatives to try to help me retrieve my funds to transfer to my bank account and they were not able to help me m, not ONE even the supervisor couldn’t. I’m so disappointed because I’ve been using WesternUnion for about 15 years now and I am so sick of getting disappointed. The worst part about this company is that 99% of their location aren’t active but they’re still showing that they’re available on Google. I will never use this company again.

Positive Feedback

There are no positive reviews published about Western Union on the PaymentPop website.

Western Union BBB Rating

Western Union has an average customer review rating of 1 star and a rating of “B” on the BBB site based on 87 customer reviews. Almost all reviews have to do with Western Union’s cash transfer services for individuals. While these don’t necessarily reflect the experience a merchant will have with Western Union, they do give a good idea of the company in general.

Negative Feedback

Overwrought with scams, apparently not a new thing for them. My email was used by someone opening accounts annd I kept getting verification emails. It took 35 minutes of being on hold and over 20 minutes of no, Im not a customer, nor do I want to be. Remove my information from the system. to get them to just deactivate my email.

I would give zero stars if that were an option. I spent 30 minutes trying to get assistance with an international wire transfer, only to be transferred back to the start of the customer service queue after finally reaching a representative. After waiting another 15 minutes to speak with someone else, they were unable to answer even the most basic questions about transfer limits. The experience was a complete waste of time.

Positive Feedback

There are no positive reviews about Western Union on the BBB website.

Trustpilot Rating for Western Union

Western Union has an average customer review rating of 4.2 stars on the Trustpilot site based on 107,703 customer reviews. Again, most of these reference individual transfers.

Negative Feedback

Sent emergency money and the money has been taken out of my account, yet transactions are still in progress for 3 days. Very slow, and I wouldn’t recommend using this company to send emergency funds. I messaged them through chat today, and she stated they would escalate the matter, they should pay the money to the receiver straight away. Extremely disappointed!

I wanted to send money to my father for New Year’s. I sent it two weeks ago, but he still hasn’t received it. The customer service is terrible and they don’t seem to know what to do. I recommend using a different remittance company

Positive Feedback

I used western every often to send money to family and friends if very useful because the money can be picked up in minutes without no hassle

Easy to use
No problems
Clear concise information
Genuine review

Consumer Affairs Rating Analysis

Western Union has a 1.5 rating on the Complaints Board site based on 1,291 customer reviews. Like the other profiles, these are heavily focused on the company’s individual transfers.

Negative Feedback

I was sending money to my daughter in college they red flag every single person‘s account on Western Union as told me by the supervisor and the person talking to until they can prove it is not a scam artist sending the money even though the person sending it is in their computer with the name address and the people that they’re sending it to is in their computer. They will red flag it and stop all money transactions until they can figure it out, now my daughter is overdue for her books, her food, her expenses and we can’t do anything about it except send more money from some place else. I would never recommend this place. Do not go there.
It used to be a wonderful experience and for two more dollars you can go to Walmart to Walmart and you’ll get your money sent. Meanwhile, they have all your money and they’re probably earning interest on it somehow, so this is five days that they’re behind because they didn’t. I couldn’t prove even though they asked me personal questions at the store when I bought the money order whatever it is that invaded my privacy but I did answer them and then they asked me the same questions today on the phone to prove that it’s really truly my daughter that I’m sending money to. Do not attempt to use Western I.
– Complaint from November 21, 2023

WU is famous between scammers and thieves. So many scams taking place on Western Union that they fail to investigate. I have been a client for many years. Uploaded my documents. They verified me.. THEN all of sudden when I was sending funds to FAMILY (not scammer or third party) they investigated me like if I was a criminal. WHERE DID YOU GET THIS MONEY? WHY ARE YOU SENDING THE MONEY? WHO ARE YOU SENDING THE MONEY TO? WHY DOES HE NEED IT?
After responding to all those invasive questions.. they deducted the funds from my bank account and sat on it for 10 days and did not transfer to the bank account of beneficiary. When I call them .. all set next day .. next day.. THEN they asked for ID and personal info of the Beneficiary.. and here I am. We want to put a down payment for home and we are delayed due to WU KYC investigation.. probably my ** last name has to do a lot with it .. but what can I do.. profiling is hard to prove here.. I WILL NEVER USE WU again.
– Review from November 7, 2023

Positive Feedback

I made a transfer from Canada to my bank account in Jamaica. This was my first such transfer. I kept checking on the progress of the transfer and the status remained at “Direct Deposit to be made to Receiver’s Bank Account”. So after 3 days I contacted the Western Union in Jamaica to find out what was happening. Needless to say, I was peeved as I could not get any information because after speaking to the first agent, I was placed on either a hold with no sound to let me know I was holding or transferred to a number that rang endlessly while my phone minutes kept on going – running up my bill.
I contacted the Canadian agent today and to my dismay he told me I have to speak with a Jamaican agent (I almost cried). But God would have it going my way when I got a hold of Nyoka ** a Customer Service Specialist in Jamaica. She took control and in no time I understood what was happening and she got the matter resolved. She emailed me relevant documents and her response time to my queries via email was exemplary. I am keeping her contact in my email because I know I will be doing further business with Western Union and my experience with her will drive me to reach out to her once again. THANKS NYOKA. YOU HAVE REDEEMED WESTERN UNION.
– Review from June 22, 2019

I was in one the Western Union store in Toronto (7053 Yonge St.) to send the money to out of country. one the staff explained to me everything about the app and also helped me to download the app on my phone to send a money with lower fee when you use the app. She was very friendly and helpful and I strongly recommend to everybody to go to same store to use their services.
– Review from December 30, 2021

Processing Rates & Fees

Variable Pricing

Western Union, known for its diverse money transfer services, offers varying fees based on transfer type, currency, and destination. Customers can utilize their price estimation tool to gauge transaction fees in advance, which is particularly helpful before initiating a payment.

Western Union Pricing Example

Below is an example of fees for a hypothetical $500 transfer to New York City. However, note that these figures may not fully represent the range of possible transfers and could have changed since the time of writing.

Western Union Fees for a Sample $500 Transfer to New York City

 

Payment MethodDelivery MethodTransfer timeCostEffective %

The transaction fees charged by Western Union can vary significantly, ranging from 1% to 9%, depending on the transfer’s specifics.

Speedpay Rates

Western Union’s Speedpay solution, geared towards businesses, may not follow the same fee structure. Tailored for businesses with numerous international transactions, these fees are subject to fluctuations due to currency conversions and international market variations. Western Union crafts bespoke service packages for different business types, making it essential for clients to fully understand all costs involved in processing international payments through Western Union compared to other digital invoice payment processors.

Slower and More Expensive Than Competitors

Despite not enforcing long-term contracts or hidden fees like early termination fees or PCI compliance fees, Western Union’s services often do not match the efficiency and cost-effectiveness of its competitors in the money transfer domain. For instance, mobile apps like Venmo or Square Cash facilitate rapid, fee-free transfers. However, Western Union remains a viable option for those needing prompt, cash-based pickups at specific locations. It is not, though, the most economical choice for digital transfers.

Business owners looking for broader payment solutions can explore our selection of the best merchant services.

The Western Union process
A visual guide to the Western Union money transfer process

Lawsuits & Legal History

In January 2017, Western Union conceded to a $586 million forfeiture as part of a settlement with multiple U.S. regulatory bodies, acknowledging lapses in its anti-money laundering and fraud prevention measures. This settlement includes mandates to improve fraud detection, provide consumer fraud warnings, and refund fraudulently induced transfers under certain conditions. Western Union has initiated distributions from this forfeiture to victims globally. Additionally, the company has faced fines related to economic sanctions, consumer protection, and anti-money laundering deficiencies.

Employee Reviews & Sales Practices

An Established Brand

Western Union appears to rely primarily on its widespread name recognition and physical locations across the country to attract business. The company’s agent program allows its agents to establish their own Western Union locations in order to increase the company’s territorial foothold. We have seen some Western Union reviews that accuse the company of nondisclosure or misrepresentation, but these instances appear to be mostly due to user error rather than deceptive tactics by sales agents.

No Deceptive Quotes

There is no evidence at this time that Western Union engages in misleading promotional strategies in its official materials, and we therefore award it an “A” rating. This compares favorably to our list of best credit card processors. For a better understanding of how Western Union’s rates and fees compare to traditional credit card processors, we recommend reading “Fee Sweep“.

Western Union Competitors

Compare Western Union to competitors that earned top marks.

Bottom Line

Western Union is currently rated as an average money transfer and credit card processing service. The company can be a convenient choice for underbanked or international users requiring fast cash payments, but its fees are considerably higher than those of most peer-to-peer payment solutions. Casual users who need to transfer funds online or through a mobile app will likely find greater value and convenience with a top-rated mobile payment app.

However, Western Union’s rating has been significantly impacted by a recent FTC ruling against the company, which raises concerns about its practices. While it can still fulfill certain urgent needs effectively, users should be aware of the associated costs and consider alternative services for everyday money transfers.

Read Actual User Reviews

All user reviews have been moved to our partner, PaymentPop.com

Contact Western Union

Contact & Customer Support
CEODevin McGranahan
Headquarters7001 E. Belleview, Denver, CO 80237
Toll-Free General Customer Service(800) 325-6000
Website Care(877) 989-3268
For TTY Users(800) 877-8973
Additional Support ChannelsLive Chat
Websitewesternunion.com