A closer look at Western Union for wire transfers in Canada

Western Union is one of the most recognized names in global money transfers., They’ve helped people send money abroad for over 100 years.

But is it the best option for Canadians today? We’ll take a closer look at how Western Union works and see if Wise could be a simpler, more affordable way to send money abroad.

Can You Send a Wire Transfer with Western Union?

Western Union offers wire transfer services, enabling customers to send money both domestically and internationally. These services can be accessed online, through their mobile app, or at physical agent locations, with options for recipients to receive funds directly into their bank accounts, as cash pickups, or to a mobile wallet, depending on the country.

Unlike banks, Western Union doesn’t always use SWIFT or Lynx to move money. Western Union facilitates money transfers via its own extensive global network, meaning that banks aren’t directly involved in the transfer.

Understanding Western Union’s Transfer Methods

You can send money with Western Union in a few different ways,including cash pickups, mobile wallet deposits, and direct bank transfers. When sending funds directly to a recipient's bank account, especially for international transfers, Western Union may use the SWIFT network,which needs information like the recipient's bank account number and SWIFT/BIC code.

However, unlike bank wire transfers where the sender's bank initiates the transfer through interbank networks, Western Union acts as an intermediary, collecting funds from the sender and disbursing them to the recipient via its own network or through partnerships with local banks.

How Western Union Transfers Work in Canada

Canadian customers can send money through Western Union online, in the app, or at an agent location. Here’s how it works:

• Ways to send: You can send funds directly from your bank account, with a debit or credit card, or via Interac e-Transfer through a partner bank. You can also pay in cash at a retail location.
• Payment methods: Available methods include bank transfers, card payments, and cash. Each one varies in speed and fees.—debit card payments tend to be faster, while bank transfers may take longer to process.
• Delivery options: Recipients can collect money in several ways:
• Cash pickup: Available at thousands of agent locations globally.
• Bank deposit: Funds go directly to the recipient’s bank account.
• Mobile wallet: In select countries, funds can be sent to a digital wallet.

Western Union Wire Transfer Fees and Exchange Rates

Western Union makes global transfers easy, but the total cost of a transfer can vary depending on several factors, including how you send the money, how your recipient receives it, and the destination country. It's important to look at both the fees and the exchange rate to understand what you're really paying.

Fees for Sending Money with Western Union

Western Union doesn’t charge a flat fee for sending money. Instead, their fee can change based on:

• Transfer method – Sending money online, through the app, or in person at an agent location can each come with different fees.
• Payment method – Paying with a debit or credit card usually costs more than using your bank account.
• Delivery method – Sending to a bank account may cost less than cash pickup, depending on the destination country.

It's important to note that exchange rates and fees can vary depending on the payment and delivery methods chosen.​ However, you should see a breakdown of fees before confirming your transfer so you know exactly what you’re paying.

If you pay by credit card, you might face extra fees from your card issuer, since they can be treated as cash advances.

You can check Western Union’s current fees using their price estimator tool.

Western Union’s Exchange Rates

Western Union adds a markup to the exchange rate when converting your money into another currency². This means the rate you see is not the real mid-market rate i.e. the one you often see on Google, but one that includes their margin.

The exchange rate margin varies by currency pair and transfer method. While Western Union is transparent about this in the final step of the transaction, it’s important to always:

• Check the exchange rate offered
• Compare it to the mid-market rate
• Consider both the fee and the markup as part of your total transfer cost

Even small exchange rate markups can make a big difference — especially for large transfers.

Western Union Transfer Limits

Western Union sets transfer limits that can vary based on several factors, including your verification status, the destination country, and the method of transfer.

Limits for Sending and Receiving Money

In Canada, Western Union customers can send up to 999 CAD per transfer³ when using Western Union’s website or mobile app in Canada. This limit is higher if you’re a Scotiabank customer using Western Union, with a higher daily limit of 7,499 CAD ⁴ if you use a Scotiabank branch .

Factors That Affect Western Union Transfer Limits

A few things can affect how much you can send or receive through Western Union:

• Verification status: Completing identity verification, with government-issued ID and other person information, may increase your transfer limits.
• Destination country: Different countries have varying regulations and restrictions, which can affect transfer limits.
• Transfer method: The method you choose to send or receive money (e.g., online, in-person, bank transfer, cash pickup) can impact the applicable limits.
• Payment method: Using a credit card, debit card, or bank account can each have different associated limits and fees.
• Regulatory requirements: Compliance with international financial regulations may require additional documentation or impose certain limits on transactions.

Comparing Western Union with Wise

Western Union is a long-standing name in global money transfers, offering a massive international reach with both digital and in-person services.

Wise has over 16 million customers worldwide, with a multi-currency account designed to make sending money across borders easier and often cheaper than other methods.

Western Union vs. Wise: Fees, Limits, and Exchange Rates

Here’s how it compares to Western Union when it comes to fees, limits, exchange rates, and speed.

When to Use Wise Instead of Western Union

Wise may work better for you if:

• You want the real exchange rate: Wise uses the mid-market rate with no markups, which can make a noticeable difference for larger transfers.
• You prefer lower, transparent fees: Wise displays all fees upfront and doesn’t hide them in the exchange rate.
• You’re managing international business payments: With batch payments, local account details to receive payments in 23 currencies, and accounting integrations, Wise is built for global businesses as well as personal transactions.
• You need to hold and convert multiple currencies: Wise’s multi-currency account lets you store and switch between 40+ currencies.
• You want a fully digital experience: If you don’t need to send or receive cash in person, Wise’s app and website offer a user-friendly way to send money globally.

How to Send Money with Wise

Step 1: Sign up and get verified

Start by creating a free Wise account using your email and a secure password. To comply with regulations, Wise will ask you to verify your identity, usually with a photo ID and proof of address, to help keep your account secure.

Step 2: Set up your transfer

Go to the Send section of your Wise dashboard. You can choose an existing recipient or add a new one by entering their bank details or Wise tag. Then, enter the amount you’d like to send, or the amount you want the recipient to receive and choose a currency.

Wise calculates your fees and shows you the exact exchange rate up front

Step 3: Choose how you want to pay

You’ll see different payment options depending on your currency and country — for example, direct debit, wire transfer, or credit card. Each option will show you how fast it is and what it costs.

Step 4: Confirm and send

Review everything before you hit send. Once you approve it, you’ll get a confirmation, and Wise will send you and your recipient updates when the money is on its way.

Transparent fees and real-time tracking

Wise is built with security and transparency in mind, with 2FA authentication and biometric verification at your disposal. You'll always see the full breakdown of fees before sending, and you can track your transfer from your Wise dashboard or app in real time.

Final thoughts on Western Union for international transfers

Western Union has long been a go-to for sending money around the world thanks to its speed and convenient cash pickup options. But convenience can come at a cost, with fees and exchange rates that aren’t always the most budget-friendly.

If you’re after a more affordable, transparent way to send money abroad, Wise can be a good alternative. With low, transparent fees and the mid-market exchange rate, it’s designed to help you keep more of your money when sending across borders.

No matter which provider you go with, compare fees, speed, and delivery options before you hit send — it could save you more than you think.

Sources

1. Western Union - Fee Table
2. Western Union Canada
3. Western Union - FAQ
4. Western Union Money Transfers | Scotiabank Canada
5. Guide to CAD transfers | Wise Help Centre
6. Wise Fees & Pricing: Only Pay for What You Use