MoneyGram International is a US based money transfer company with headquarters in Dallas Texas and many offices worldwide. MoneyGram International is the result of a merger of Travelers Express, founded in 1940, with Integrated Payment Systems Inc.
By 2006, MoneyGram introduced services such as online money transfers and bill payments. The company had become more global, establishing itself internationally in regions such as the Asian-Pacific, Eastern Europe, and Central America.
MoneyGram is the second largest provider of money transfers in the world, with annual revenue of $1.45 billion. The company operates in more than 200 countries with a global network of more than 350,000 agent offices.
Security Violations: In 2012, MoneyGram International admitted to anti-money laundering and wire fraud violations after MoneyGram services were used by unrelated parties involved in mass marketing and consumer scams that defrauded thousands of US victims and MoneyGram initiated a $100 million victim compensation fund as part of settlement. In February 2016, MoneyGram agreed to pay $13 million to end an ongoing money transfer probe.
MoneyGram businesses are divided into two categories: Global Funds Transfers and Financial Paper Products. MoneyGram has been in business long before the advent of electronic transfers, and build its business through agent offices which aren’t compatible with the modern currency transfer structure. Although MoneyGram has adapted, it still depends on processes that are not competitive with modern currency transfer processes.
The company works with individuals and businesses through networks of agents and financial institution customers. In 2015, the company’s agent network in Africa reached 25,000 locations where the service is often the only option for those without banking services.
Highest Fees in the Industry:
12% on exchanges under $100 USD
MoneyGram’s homepage is designed to rapidly press visitors to make a transfer without detailing the service options and rates or fees ( taking all emphasis off the concept of sending money cheaply). No currency calculator is provided as this site treats the client as but one of many inconsequential millions of persons passing daily. The security of using the service is somewhat worrying since the page is dominated by consumer advice regarding safety of services. Scam Awareness Alliance is the non-profit organization MoneyGram founded in accordance with court mandated restitution after MoneyGram clients lost millions of dollars in previous scams.
US Consumer Affairs Department rates MoneyGram 1 out of 5 Stars with 319 reviews. The general theme of awful customer service is reported by almost every single reviewer. The scope of the transfer services available worldwide wasn’t able to be processed effectively through the online platform which mistakenly sent funds to Albania when client had requested they be sent to Alabama, etc. Reports of transfers delayed as long as 11 days were combined with no tracking devices. begin with online transfer errors due to MoneyGram’s website altering information, ie: transfer to be sent to Alabama, US is auto corrected to Albania.
TRUSTPILOT rates MoneyGram at Bad, with a score of 2.4 with only 24 reviews, Notably, MoneyGram has the very poorest reviews of any transfer company on highly trusted review site. Nearly all complained about very frustrating, lengthy customer service when making phone calls to attempt to remedy transfer delays. MoneyGram frequently made errors which kept transfer funds from being processed and made it very difficult for clients to request funds be returned when service had failed.
For too long Western Union and MoneyGram were the industry standard. Unfortunately, many in remote locations without banking services have few options but to pay their high fees for remittance, today. Consumers who do have options are learning not to waste money with these global giants as new and better service providers challenge MoneyGram and the old way to send money.
1 out of 5 stars, for MoneyGram services and rates.
Huge global reach makes transfers within minutes possible.
Services like money transfers made through kiosks practically guarantee a poor rate of exchange. MoneyGram is profiting from African regions where banking services are under developed.
MoneyGram transactions can be initiated only in the United States and a handful of other countries. 350,000 locations around the world are set up for collecting, not initiating transfers.
Meta- takeaway: Rates don’t matter to MoneyGram- the world’s second largest transfer provider is a global dinosaur unable to adapt to the age of electronic transfers. Global agent offices can’t compete with today’s currency transfer options.