A Quick Buck

Get Up To Speed On All The Options Before Using A Money-transfer Service

February 14, 1995|By Barbara B. Buchholz. Special to the Tribune.

If you've ever lost your wallet or credit cards away from home and needed cash fast-or had to help someone in such a situation-you know the sinking feeling it brings.

Gone are the days, however, when your options were extremely limited and the funds took hours or days to arrive.

A number of financial services today can send or receive money quickly-sometimes within minutes-and fairly inexpensively, even overseas. Generally, the faster the money arrives and the farther away the source, the more it costs.

"Competition has definitely lowered charges, and it's improved speed and service," says Peter Ziverts, director of corporate communications for Integrated Payment Systems Inc.'s MoneyGram, which began sending funds in 1988 and is part of First Data Corp., an information-processing company.

"We operate through a network of 18,000 agents in this country located at such area businesses as supermarkets and check-cashing firms. We also have about 6,500 agents in 76 countries and are looking to expand more internationally," Ziverts says.

Much of the growth is due to immigrants from Mexico and the Caribbean regularly sending money back to family members in their homelands, says Warren Bechtel, communications vice president with Western Union Financial Services Inc., which has been in the money transfer business for 124 years.

To send or receive funds, someone calls or visits a company's office that transfers funds, fills out a brief "send money" form and pays, usually by cash, cashier's check or a major credit card. Within minutes (in this country) and usually a few days (overseas), the recipient goes to a designated location, shows proper identification and walks away with the much-needed money.

More money sources means that before you choose, you need to carefully weigh these variables: how much money you or someone else needs; how the sender plans to pay (cash, cashier's check or credit card); whether the transaction can be completed by phone or has to be done in person; hours (some suppliers operate 9 a.m. to 5 p.m. while others remain open 24 hours a day); how the money is to be transmitted (cash, check or, if overseas, local currency); the cost of the funds, which usually increase according to the amount; time (for sending and receiving); and the identification needed to claim the money.

MoneyGram currently charges $20 for $500 to be sent within the U.S., while Western Union Financial Services charges $40 for the same amount. Someone sending a MoneyGram, however, must go into an agent's office; Western Union can handle the transaction by phone, 24 hours a day, as long as a person has a credit card.

Some companies offer discounts. Western Union offers a preferred customer card, and MoneyGram gives frequent users 10 percent off on transactions once they receive their MoneySaver frequent-user card.

Following, more specifics about the major sources:

- Western Union financial services. The company's minimum charge is $15 to send $100. Though there's no maximum, most people don't send more than $2,000, which costs $90, Bechtel says. Western Union charges the same whether you transfer money across state lines or across an ocean.

You can pay by cash or a cashier's check or by phone, charging it to your Mastercard or Visa. Phone service is available 24 hours a day. Funds are transmitted in cash in the U.S. and in a country's local currency overseas. For more information, call 1-800-325-6000 or 1-800-225-5227 (1-800-CALL CASH.)

- MoneyGram. MoneyGram, which used to be owned by American Express and is now being partially run by that company under an agreement with First Data (that's why consumers may still see American Express MoneyGram signs around, according to Ziverts), promises a transfer within 10 minutes. Domestic funds can be paid for by cash or a Visa, Mastercard or Discover card. There is no minimum, but there is a maximum of $10,000. There is no phone-in service.

Costs for overseas transfers vary. Currently, transmitting funds to Latin American recipients are similar to transmitting them domestically. A $300 money transfer to Brazil, for example, costs $10 while to Paris it costs $35. All funds are transmitted in dollars. Call 1-800-926-9400.

- Express Mail. The U.S. Postal Service doesn't encourage people to send cash, but helps those in need receive funds by express-mailing money orders. Domestic delivery is available the next day, depending on how late in the day an order is sent. Overseas transmittal may take a few days.

For domestic service, a money order for up to $700 is 85 cents at a post office. For up to 8 ounces, the mailing charge is an additional $10.75. International costs vary by country. To get a money order for up to $700 to Great Britain, it's $3 for the order and $11.50 for the mailing charge. To send the same amount to Costa Rica, the money order increases to $7 and the mailing charge to $14.