How does MoneyGram determine conversion rates?


Quick Answer

MoneyGram determines the conversion rate of currency by applying an exchange rate set by the company, as the company's website explains. MoneyGram indicates the applied exchange rate to its clients in both pre-transaction and post-transaction disclosures.

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Full Answer

The rate is often rounded off to the number of decimal places, as indicated on the disclosures. However, in some instances, the actual number of decimal places that MoneyGram uses to convert the currency into foreign currency may be greater than that indicated in the disclosures. In such cases, MoneyGram or its agents retain any amount generated by the difference, according to MoneyGram. Any such differences are also clearly revealed in the post-transaction disclosures issued to clients by MoneyGram.

In almost all cases, the conversion rate described on either the pre-transaction or the post-transaction disclosure is determined by the most recent trading rate of the currency against the U.S. dollar. Accordingly, the exchange rate is a dynamic figure. Transfer fees only determine the difference between the sent and the received amounts. The transfer fee is communicated separately and not as a part of the conversion rate, as the company's website indicates. When sending money through MoneyGram, customers should confirm the exchange rate to ensure they know how much the transaction is set to give the recipient.

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