I have family outside the United States. I am in the United States. This family of mine is financially dependant on me to some degree, so I send them money periodically. When I first relocated back here, I looked at a couple of options on how to send them money.
There's some marginally legit folks who'll take your money here, charge you a very small fee, and deliver said money in the country I needed it to be delivered to. I don't give a shit whose money they're laundering or that I am helping them do that. My one worry is that if there happens to be some problem, and the money doesn't show up, there's not a whole lot of legal action I could initiate against them. So I never used them, even though a very good buddy swears by them and has been sending money through them for years. Better safe than sorry...
I could also open a bank account here, and mail my family the debit card. I'd provide them with a PIN once I knew they had possession of the card. That would even allow them to take advantage of the official exchange rate there, which I used regularly when I lived there to boost my income by anywhere between 10 and 20%. It worked this way. I'd get my salary in local currency. I'd convert that to dollars at the black market rate, which was a good 300 local units below the official rate. I'd deposit the resulting dollars in my account here (don't ask how, just trust me, I did it). I'd then withdraw money over there, in local currency, with my debit card, at the official rate. Instant profit of 300 local units per dollar. How's that? Only problem with that was, I also need proof that I have been sending money in case there's ever any claim to the contrary, so despite its many advantages, I discarded that idea, too.
I finally decided to use good, old Western Union. The first time I sent money, I went to a supermarket, filled out the paperwork, paid my fee and that was it. I made note of the fee, too. I then went online, created an id at
Western Union's website, along with my credit card info, and next time around I sent money via the web. I discovered that by sending online, the fee was a good 5 dollars cheaper than by sending it at the supermarket. This is as it should be, since I was doing all the work and they were saving whatever the cost of keeping a point of presence in the supermarket was, plus the time of the clerk who took my order, plus the commission the supermarket charges.
A few months down the line, though, I noticed a sharp increase in the online fee. I again compared with the supermarket fee and found that indeed, it was cheaper at the supermarket. I sent a nastygram to Western Union about this and started sending money in person for a while. I mean, do they think everyone is as stupid as they are? Why would I pay more money (a few dollars only, like 3 or 4) for the dubious privilege of doing all the work myself, as well as trusting their sorry excuse for a secure website with my financial information? Another few months passed, and even though I ever got a reply to my nastygram, I went online again to check if the fee had changed. It had! It was again a few dollars cheaper to do it online.
Then, almost a year ago, the online fee about doubled. I check every now and then, just for kicks, but went back to sending in person ever since. I checked again today. The fee for sending in person is 15 dollars. The fee for sending online the exact same amount of money, to the exact same person, in the exact same geographical location, is 34 dollars. Someone very, very stupid has been given managerial duties at Western Union. I can probably give you a pretty good idea of when this person was hired, or given that function, too. It had to have been around the time that fee increase was instituted.
I wonder, though, how many people actually pay the exhorbitant fee without knowing how much cheaper it is to do it at a supermarket? Class Action Suit, anyone?