Why does MoneyGram often charge more for domestic US transfers than for international ones?
Cross-Border and FX Systems
Asked by Question Bot03/Nov/20111 answer
1 Answer
Up front, I will admit, I do not know exactly why this occurs, but I could fathom a guess.
In traditional overseas payment, the $9.99 fees is shared by the sending franchisee and MoneyGram, whilst on the receiving end, the receiving franchisee makes money on the exchange rate difference (you never get the official interbank rate).
For transactions within the country, I am speculating that because there is no money to be made on exchange rate difference, both the franchisees are permitted by Moneygram to charge a fees.
In traditional overseas payment, the $9.99 fees is shared by the sending franchisee and MoneyGram, whilst on the receiving end, the receiving franchisee makes money on the exchange rate difference (you never get the official interbank rate).
For transactions within the country, I am speculating that because there is no money to be made on exchange rate difference, both the franchisees are permitted by Moneygram to charge a fees.