Guide to Western Union: fees, steps and processing time

What is Western Union?

Western Union is a well-established financial platform offering global remittance services across more than 200 countries and regions. Founded in 1851 in New York, the company is headquartered in the United States, and is publicly traded on the New York Stock Exchange. With over 150 years of experience in the remittance industry, Western Union serves over 150 million customers worldwide and has more than 525,000 agent locations globally, including 47 designated post offices in Hong Kong. Recipients have the flexibility to receive remittances not only at banks and mobile wallets but also at nearby agent locations.

Steps to remit via Western Union

1. Visit the Western Union website or download the Western Union app, log in or register as a member, and enter your email address, phone number, and other information.

2. Enter the recipient country or region and the transfer amount.

3. Choose the payment method, such as cash, online bank account, mobile wallet, or credit card.

4. Enter the recipient's details.  For direct bank transfers, you'll need the recipient's bank name, branch code, and account number.

5. Once the transfer is completed, you will receive a confirmation email with the Money Transfer Control Number (MTCN)

How to receive money with Western Union

Recipients can collect remittances at banks, Western Union global agent locations, Tap & Go mobile wallets, or credit cards, depending on the recipient's country/region. However, remittances within Hong Kong can only be collected in cash.

Remittance fees for Western Union

Western Union remittances come with various fees based on the method used for payment and receipt. Senders can calculate the total remittance fees in advance via the official website or app, with fees typically ranging from HK$5 to HK$30.  Additionally, users can access real-time online exchange rates. However, it's crucial to keep in mind that fees at agent locations may differ from those listed online, so it's advisable to inquire in person.

Western Union generates revenue through differences in exchange rates. Generally, choosing bank account payments tends to yield more favorable exchange rates, while cash payments can be more expensive.

Additionally, when a transaction is carried out using mobile payment, the funds will be sent to the recipient's mWallet account provider for deposit into the account linked to the recipient's phone number. Additional third-party charges may also apply, including fees for SMS notification, account overdrafts, and cash withdrawals.

How long does it take to remit via Western Union?

When making global transfers through Western Union, the processing time varies based on the selected payment method. Once Western Union receives the full amount from the sender, recipients can typically collect cash at an agent location within minutes to 24 hours if the sender paid with cash, credit/debit card, or a Tap & Go mobile wallet. However, the arrival time can be affected by specific conditions, such as the transfer amount, destination country/region and regulations, which may lead to delays. For online banking transfers, funds may be credited within 1 to 5 business days, depending on the locations of both parties.

Various other methods for international remittance

Besides Western Union remittance, there are various other cross-border options available.  These include traditional bank transfers, third-party payment platforms and Airwallex.

1. Traditional bank transfers: One of the most common ways for making cross-border transfers is through traditional banks in Hong Kong. While most banks offer this service, bank wire transfers can come with multiple fees and are relatively costly. Also, the exchange rates offered may not be the most favourable, and same-day transfers might not be possible due to lengthy approval processes.

2. Third-party payment platforms: Services like Alipay, WeChat Pay, PayPal provide cross-border remittance options. Some of the platforms offer a limited range of functionalities, including online payments, money transfer and remittances. The currency exchange cost on these platforms tends to be relatively high. For SMEs aiming to improve efficiency and reduce costs, these platforms may not be the ideal option.

3. Airwallex: all-in-one financial and transfer platform: In Hong Kong, professional remittance companies like Airwallex offer comprehensive financial and remittance solutions. Airwallex stands out by facilitating transfers in over 60 currencies to nearly 150 countries and regions. Businesses can effortlessly open an account online without incurring any account opening fees, monthly fees, or minimum transaction amounts. 

With over 90% of transfers routed through local channels, there are no international transaction fees, and 85% of transfers can be credited on the same day. Airwallex also provides competitive exchange rates, with spreads as low as +0.2% over interbank rates, significantly reducing operating costs for businesses.

Beyond remittance services, Airwallex also offers multi-currency accounts, corporate cards, expense management solutions, and online collection, all aimed at streamlining global payment and financial operations. Currently, Airwallex serves over 100,000 businesses worldwide, including notable clients like the insurance provider Bowtie, the K Dollar Program, and the eco-friendly retailer Slowood, while processing an impressive annual global payment volume of $1,00 billion.

Comparison of Western Union and Airwallex

Frequently asked questions

Is Western Union available in Hong Kong?

Yes. Western Union has 150 agent locations throughout Hong Kong.  These locations are primarily situated in business centres, shopping districts, and designated post offices. Senders can easily find the nearest agent location on the official website or mobile app. However, there are restrictions on the amount that can be remitted, which can be inconvenient for SMEs. For transactions exceeding a certain limit, it is necessary to visit an agent location in person.

Is Western Union safe?

Yes. Western Union uses encryption and anti-fraud tools to protect all remittances sent or received, and holds a money service operator license issued by the Hong Kong Customs and Excise Department .

What is the maximum amount that can be remitted through Western Union?

To send money online, a sender must verify their identity if the amount exceeds HK$7,500. Verification requires uploading a copy of a valid government-issued ID (front and back) along with additional documents for proof of address, such as utility bills or other public service statements. Once verified, the maximum online remittance limit increases to HK$392,000.

For amounts exceeding this limit, the sender must visit an agent location in person. Some agents may ask for photo id, such as passports or Hong Kong identity cards, and may also request further information or documentation.

How long does it take for a Western Union remittance to arrive?

It depends on the payment method selected by the sender. Transfers to designated overseas banks can be received in real-time within minutes, or typically take 1 to 5 business days. However, the arrival time may vary based on specific conditions. With Airwallex, over 90% of remittances go through local channels.  With no international transaction fees charged, 85% of transfers can arrive on the same day.

*Information on Western Union was retrieved as of Aug 2024, from below sources. Information provided is for reference only. Please refer to the official website for the most up-to-date details

1. https://www.westernunion.com/hk/en/send-money.html

2. https://www.hongkongpost.hk/tc/services/remittance/electronic_remittance/index.html

3. https://www.westernunion.com/hk/en/receive-money.html

4. https://www.westernunion.com/hk/en/send-money.html

5. https://eservices.customs.gov.hk/MSOS/wsrh/001s1

6. https://www.westernunion.com/hk/en/register-and-send-money.html

Disclaimer: The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed every 6 months. If you would like to request an update, feel free to contact us at [email protected].