Is MoneyGram Safe? [2024] Review

The global population is growing quickly. There are now over 8 billion people in the world!

And we’re not just multiplying. We’re also growing closer, with personal, cultural, and economic ties bringing us together across national borders. 

In such a globalized world, you might find yourself needing to send someone money, either internationally or within the United States. MoneyGram is a service that can help you do it.

But is MoneyGram safe? And how exactly can you use it?

I’ll answer both of those questions and more in this comprehensive MoneyGram review. 

What is MoneyGram?

MoneyGram is an online money transfer service, meaning you can use it to send money around the world.

For digital transfers, you can use the website or the MoneyGram app, which is available for iOS and Android. And whichever method you choose, sending the money should be easy. As in, it should only take a few clicks!

You can also send money by visiting one of MoneyGram’s 430,000 physical locations. 

And while the focus is on money transfers, MoneyGram can do even more.

Here’s a full list of MoneyGram’s services:

• Money transfers
• Bill paying (online and in person at MoneyGram locations)
• Trading cryptocurrency 

Yes, MoneyGram is a super versatile platform. That said, it’s mostly known for money transfers – so that’s where this MoneyGram review will focus. 

You might also be asking: Is MoneyGram Safe? 

And the answer to that question is definitely “yes.” Sure, people can use MoneyGram for fraudulent purposes, but the company uses encryption to protect your data.

How safe is MoneyGram? Safe enough to earn 4.5 stars from reviewers on Trustpilot. Not bad; not bad at all!

How Does MoneyGram Work?

MoneyGram offers two different ways to send money, and both of them are designed to maximize convenience:

• Option #1: Send money online
• Option #2: Send money from a physical MoneyGram location

The easiest method for lots of people is to send money online. 

You can initiate an online transfer through the website or with the official MoneyGram app. Here’s the 3-step process:

• Step 1: Log in (or register if you don’t have an account). This is the step that allows MoneyGram to verify your identity.
• Step 2: Select or add a receiver. You’ll say who the person is, how they’ll receive the money, and how much you want to send.
• Step 3: Choose your payment method and complete the transfer. You can use a credit or debit card or have the money taken directly from your bank account. 

Would you rather send the money from a MoneyGram location? This is a great option if you have physical cash. Your first step is to find a MoneyGram location, which you can do through the official MoneyGram website. Then, just head on over with your cash, your ID, and the recipient’s information on hand, and the MoneyGram agent on site will complete your transfer.

Many MoneyGram locations also have a MoneyGram kiosk on site. So, if you’re a do-it-yourselfer by nature, you could enter the transaction details on the touch screen and then simply pay the cashier on your way out. 

But what about the recipient? What does the transaction look like from their perspective?

There are six ways to receive money through MoneyGram, and availability depends on the recipient’s country:

1. Cash pickup – available in all countries. The receiver shows up at a MoneyGram location with their ID and the reference number for the order. The money should be available within 10 minutes. 
2. Bank account transfer – available in select countries. The money will appear automatically in the receiver’s bank. In some countries, the sender can enter the receiver’s phone number, and then the receiver enters their own bank account information. The money is often available within 1 hour, but it can take until the next day in some countries. 
3. Debit card transfer – available in select countries. The money appears automatically in the account associated with the debit card. It usually takes just a few minutes. 
4. Mobile wallet transfer – available in select countries. The sender specifies the receiver’s mobile phone number and the money appears automatically in the receiver’s mobile wallet.
5. Home delivery – available in select countries. The sender specifies the receiver’s address, and a MoneyGram agent delivers the money.
6. FastSend. The receiver gets a text message with a link, and then, by clicking through the link, they decide how to send the money to their checking account. They can opt for a direct transfer, or they can use their debit card.

The sender has to choose between these options when they initiate the transfer.

Receivers can track the progress of a transfer on the official MoneyGram website. All you have to enter is the reference number for the order and your last name. 

Now, there’s one part of the process that this eMoneyGram review hasn’t touched on: fees. Nobody likes them, but they’re often pretty reasonable. The exact cost depends on the receiving country and the type of transfer, but you could pay as little as $1.99. 

And MoneyGram is totally upfront about how much a transfer will cost. 

On the homepage of the official MoneyGram website, you can enter your transfer amount and country to see estimated fees. 

Here’s an example:

If I say that I want to send $500 to a receiver in Mexico, MoneyGram immediately shows me:

• The exchange rate
• The amount the person will receive in Mexican pesos
• The transfer fee for different payment methods

In this case, the cheapest option is to use a debit card, which would only carry a fee of $1.99.

Is MoneyGram Legit? 

If you’re reading this MoneyGram review, it’s probably because you’re asking yourself, “Is MoneyGram safe?”

When deciding whether the service is safe to use, it’s best to start with another question: Is MoneyGram, as a company, totally legitimate?

And luckily, the answer is “yes.”

MoneyGram is an extremely old company. It was founded over 80 years ago under the name Travelers Express and then became “MoneyGram International” in 1998. And with services available in over 200 counties, MoneyGram certainly lives up to the word “international” in its official name!

MoneyGram’s headquarters are in Dallas, Texas, but they have offices around the world. 

Is MoneyGram Safe?

It’s time for this MoneyGram review to answer the most important question of all: Is MoneyGram safe?

In general, MoneyGram is absolutely safe. They encrypt all the data they collect to keep it away from cybercriminals, and they’re registered with the U.S. Financial Crimes Enforcement Network (FinCEN). 

But just how safe is MoneyGram? Well, it gets 4.5 stars on the review site Trustpilot, and the MoneyGram app has 4.9 stars on the Apple App Store. So, it seems most users aren’t encountering issues with security.

Now, is it still possible to get scammed through MoneyGram? Of course – the company itself admits as much. According to the MoneyGram website, customers need to look out for phishing attacks, elder abuse, and other fraudulent schemes.

But these types of scams are possible with pretty much any money transfer service. As long as you’re vigilant, you should have no trouble using MoneyGram safely. 

This short video shows the simple 3-step process of sending money anywhere around the globe with the MoneyGram app.

Pros and Cons of MoneyGram

Is MoneyGram safe? Yes – but there’s more to explore in this detailed MoneyGram review! So here are the service’s pros and cons to consider.

Pros

• The transfer service is available in over 200 countries. The extent of MoneyGram’s global network is truly impressive. 
• The transfers are super fast. They often take just 10 minutes.
• You can set up recurring transfers. This is a great option for remittances or for anyone who sends money to a loved one on a regular basis. 

Cons

• The exchange rates aren’t great. Part of MoneyGram’s business model is to make money from currency exchange. That means you’ll have to pay more in U.S. dollars to send a certain amount of a different currency. 
• Receiver options are limited in some countries. While in-person pickup is available in all participating nations, some of the more convenient options – including direct transfers to a bank account – are only available in certain locations.
• There are limits on monthly online transfers. You can only digitally send $10,000 a month to most countries – but you can sometimes send more by visiting a physical MoneyGram location. 

MoneyGram Reviews

MoneyGram generally gets positive online reviews. For example, it has an average rating of 4.5 stars on Trustpilot, with the majority of all users giving it five stars.

So you’re wondering, “Is MoneyGram safe?” These ratings suggest that it is.

But let’s take a closer look!

In a 5-star eMoneyGram review, someone said the service makes it “easy and safe” to send money around the world.

In a 4-star MoneyGram review, a customer said the “process is quite seamless,” but they also mentioned a recent fee increase, which came as an unpleasant surprise.

Another customer left a 3-star MoneyGram review. They said MoneyGram was a “great service to use,” but they were disappointed that it took several days for a new debit card to be accepted.

And in a 1-star eMoneyGram review, a customer called the money transfer process a “horribly, horribly expensive procedure.” 

It’s true that MoneyGram’s fees can be on the higher side, but this user also complained about being charged a credit card fee – and that’s not actually MoneyGram’s fault. It’s the credit card companies that sometimes charge an additional fee. And if you’re sending money with a debit card or bank account, you don’t have to worry about it.

MoneyGram Reviews Reddit

I found a Reddit thread with someone asking how MoneyGram works.

One user responded by comparing MoneyGram to Western Union, and they suggested that MoneyGram charges lower rates. 

Another person explained the basic process for completing a transfer at a physical MoneyGram location.

Someone else suggested the money might not actually be sent – but I don’t get the sense that they were speaking from experience. It seems they were just taking a cynical view!

MoneyGram Reviews BBB

MoneyGram isn’t accredited by the Better Business Bureau (BBB). In fact, it doesn’t even have an official BBB rating.

But there are 87 customer reviews for MoneyGram on the BBB website – and they’re not overly inspiring. In fact, MoneyGram’s average customer review on the BBB site is just 1.07 stars. 

In one negative MoneyGram review, someone complained that their transfer was canceled, but they never got their money back. 

Should you be worried about all these negative MoneyGram reviews? Maybe, but remember, people often go to the BBB specifically with complaints. And on other review sites, MoneyGram fares much better. 

Is MoneyGram Worth It?

MoneyGram is definitely worth considering for domestic and international money transfers.

Why?

Here’s one reason: The answer to the question “Is MoneyGram safe?” is a resounding “yes.” 

Sure, bad actors could use any money transfer service to attempt fraud, but MoneyGram is a reputable company that encrypts its users’ data. That makes it as safe an option as you’re going to find.

MoneyGram is also intriguing because it’s available in so many countries (over 200) and makes the transfer process incredibly simple.

Now, I want this MoneyGram review to be objective and unbiased, so let me be honest: MoneyGram’s exchange rates might not be the best.

But here’s the good news. You can check these rates ahead of time online. So, my advice is to play around with the fee estimator tool on the official MoneyGram website. Then, compare these costs with what you could get from other money transfer services.

Given MoneyGram’s convenience and widespread availability, you might decide the costs are worth it!

Commonly Asked Questions About MoneyGram

What are Alternatives to MoneyGram?

MoneyGram alternatives include:

• Cash App
• PayPal
• Wise (read full Wise review here)
• Revolut
• Pangea Money Transfer (read full Pangea Money Transfer review here)

All of these services specialize in international money transfers.

And if you need a way to manage your mail when you’re out of town, check out our Anytime Mailbox review.

Is MoneyGram a Scam?

MoneyGram definitely isn’t a scam. It was founded as Travelers Express over 80 years ago, and it has a solid reputation – with the MoneyGram app even earning 4.9 stars on the Apple App Store. 

What is The Catch With MoneyGram? 

While there’s no “catch” with MoneyGram, it is worth remembering that they make money through currency exchange. This means they give you a rate that’s designed to earn them a profit. But it’s not like they hide this fact. It’s clearly stated on their website.

What is The Disadvantage of MoneyGram? 

The main disadvantage of MoneyGram is that the exchange rates they offer include a “markup.” That means they make money by offering a rate that’s worse than the actual exchange rate and pocketing the difference. 

Is MoneyGram a Good Way to Send Money?

MoneyGram is a safe and convenient way to send money. You can initiate the transfer online or at a MoneyGram location, and all your data remains encrypted.

How Much Does It Cost to Send Money with MoneyGram?

Fees start as low as $1.99 and vary based on the amount of money you’re sending, the countries invovled in the transaction, and your payment method. You can enter that information on the website or mobile app to see what your fee would be before deciding whether to send money with MoneyGram.

Is It Safe to Use a Bank Account With MoneyGram? 

Using a Bank Account with MoneyGram is completely safe. MoneyGram encrypts all user data, and I haven’t seen any reports of customers having their bank accounts compromised. That being said, you do need to watch out for common scams. Criminals could use MoneyGram to fraudulently ask you for money.