Today i came across myself in line during the food store behind an individual planning to utilize Western Union.

Today i came across myself in line during the food store behind an individual planning to utilize Western Union.

I found myself in line at the grocery store behind a customer wanting to use Western Union today. I was told by her exactly exactly exactly how pleased she had been that she managed to scrape together $300 to wire to her son for xmas. I happened to be pleased on her however the economic therapist in me personally desired to place the price she had been having to pay into viewpoint on her.

When it comes to privilege of the one-time deal she paid $15 (5% for the $300). She didn’t bat an attention during the price of the deal. Evidently she had been familiar with having to pay the high cost. Really, she probably ended up being unaware so it also ended up being a fee that is high. Because we train individual cash administration, I’m all too mindful of exactly exactly exactly how costly monetary solutions are for individuals money that is utilizing outside of main-stream banking institutions like banks, credit unions, and cost cost savings and loans.

Alternative establishments that are financial excessive quantities for solutions.

I made the decision to dig deeper so upon going back to my workplace We discovered from their site that Western Union’s fee that is direct a $250-$500 cash transfer is $12. This means the grocer also took a cut through the $300 transfer. Because of this deal, Western Union made 4% or $12. The grocery store’s cut in the transaction that is single 1% or $3. Read more