How does Western Union work? Easily explained

If you know how Western Union works, you can use the service to transfer cash around the world. How this works and what you should pay attention to, we explain in this article.

This is how Western Union works

Western Union is not a young institution, money has been sent about it since 1851.

• The only thing you need to use the Western Union service is an ID card. You can send money either in a branch or online.
• The way it works is simple: If you want to send money, you pay the desired amount and the fee. This is 15 percent of the amount.
• The money will then be transferred to a Western Union account in the country of the recipient.
• The branch in the recipient country is informed that the money is available and the recipient can then pick up the money directly or get it transferred to their account.
• How long the transfer takes depends on several factors, such as whether you deposit or transfer the money in cash. The duration can vary between a few minutes and a few days.

Western Union - Branch approach

You can use the Western Union service at around 500, 000 locations worldwide. All travel banks and post banks are such locations.

• First you have to fill out a form and then hand it in at the counter. To do this, you must identify yourself, i.e. present a valid identity card or a passport.
• Finally, you have to deposit the money you want to send.
• You will receive a so-called MTCN, the Money Transfer Control Number. This number is unique, so it is only valid for your transaction. This allows the status of the shipment to be tracked.
• In order for the recipient to receive the money, they must know this MTCN. He must also state the amount and the contact details of the sender. In some countries, a password is also required that the sender specifies.

Sending money online is cheaper

You don't need to open a Western Union account for a one-off shipment.

• Use the service more often and not only save time but also money with your own account. To do this, you must register on the Western Union website.
• The account itself is free of charge. Although there are fees for online use, these are lower than in the branch.

In the next article we explain how Moneygram works.