Western Union Canada: Payment Fees And Exchange Rates

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Western Union Canada: Payment Fees And Exchange Rates

In order to avoid the hefty wire transfer fees charged by banks, many people have turned to money service businesses (MSBs) to send money internationally.

One of the most popular MSBs that is used, is Western Union. 

Western Union Canada has been a popular option for people sending remittance payments to family members back home, or simply paying online for something from abroad.  

But is Western Union really the best option to send money overseas from Canada

In this post we’re going to examine what Western Union in Canada really costs, if there are limits and what sort of rates they charge customers.  

Western Union Canada Limits 

Something you should be aware of before using Western Union is that there is a limit on how much can you send.

If you’re sending money online with Western Union, their FAQs state that the maximum limit is $999 CAD.

However, you can encounter a higher limit of $7,500 CAD if you make the painful effort of going to one of their agent locations.

The maximum limit may change depending on how the transfer is made – if you’re sending the money to a bank account, the limit might be different than if your recipient is going to collect cash.

How Much Does It Cost To Send Money With Western Union Canada? 

Say you wanted to send $7,500 CAD to the US, here’s what it would cost you in fees, according to Western Union’s website (as seen in Nov 2018):

Western Union Canada: Payment Fees And Exchange Rates

That’s right – to send $7,500, it’s going to cost you $7,799! $299 is quite a hefty fee for this sort of transfer.

Why Does Western Union Canada Cost So Much? 

If you read the small print at the bottom of Western Union’s website, you’ll begin to understand why the above sample transfer with Western Union costs so much.

Rather than charging various separate fees, Western Union folds its fees together into a single “transfer fee.”

Here are the various factors that are included in this ‘transfer fee’:

Destination Country – with Western Union, it is more expensive to send money to some countries than others.

Receipt Method –  Western Union’s fees vary depending on whether money is being received as cash or into a bank account.  

The fee is generally higher if the recipient collects in cash – unless you pay in cash – which you will have to do if sending more than $999 CAD.

Payment Method – Western Union’s fees also vary depending on whether you send money using a credit/debit card or cash.

Cash payments are generally cheaper, but are only available if your recipient will collect in cash.

Exchange Rate – Many banks and MSB’s do not charge the live Foreign Exchange rate when converting money from one currency to another.

They charge above the mid-market exchange rate in order to make a mark-up from your transaction. While this is reasonable, some institutions charge rates that are quite steep – including Western Union. 

Western Union Business Solutions 

Western Union Business Solutions (WUBS) allows businesses of all sizes to send and receive international payments.

REMITR Business Payments offers the same service, and the table below will outline some key  differences between the two. 

Let’s take a sample payment with an amount sent of $1,000 CAD, from Canada to the USA, made via bank payment. Here’s what this would cost at the time of writing – for both Western Union and REMITR.

Factor Western Union REMITR
Sending fee $25 $5
Receiving fee Depends on bank Free with REMITR Collect
Time 3-5 Business Days 1 Business Day
Exchange Rate 1 CAD = 0.7338 USD 1 CAD = 0.75829 USD
Total Sent (CAD) $1025 $1005
Total Received (USD) $733.80 $758.29

*Exchange rates taken at 1:14 EST on December 3rd, 2018

What Is The Best Way To Send Money Internationally? 

Here at REMITR, we can solve all your international payment problems. Our service allows companies to send money to over 150 countries worldwide at any time.

With REMITR, you get the best live foreign exchange rate –  regardless of banking hours. We also offer you guaranteed savings, charging a flat fee as low as $5 to most countries – no matter how much money you want to send!

The beneficiary receives all the money that you are promised; we don’t charge any sneaky receiver fees when you send to them in their local currency.

So to avoid unnecessary trips to the bank, fees, unfair conversion rates and waiting around – get in touch with REMITR today.