How Does Western Union Work?

In Person

Western Union is set up for those who need to transfer money to another individual located some distance away. Walking into a Western Union office and requesting a money transfer is not the most popular way nowadays since the advent of computers but is still possible. The money is given to the Western Union employee and paperwork is filled out with the name of the payee and the payer. A fee is charged for the service, which is how the company makes its profit. The money is then wired to the specified location.

Online and Over the Phone

If going to Western Union in person is not an option, an individual can set up a free online account through it or call and submit information over the phone. Both of these options work in the same way as in person except cash cannot be involved since it is being done electronically. Information is given on the payee and the payer, bank account numbers are submitted, and the fee is paid. The money is transferred to the recipient's location for pickup at the time designated. Locations for all types of transfers can be another Western Union office or the recipient's bank.

Transfer

If the money is being sent to a bank, the funds are sent by way of a wire transfer from the Western Union company to the bank account requested. Transferring money this way should be done in advance since it can take several days to process through all banking channels. If money is needed more quickly, then transfer to a Western Union office is the fastest way. The individual sending the money is paying the company when the paperwork is filled out, and the information is then fed into the company database. Since it has the money, plus the related fee, it has no reason to hold onto the funds like a bank might. The money can be ready for pickup at whatever Western Union location is designated within mere minutes of it being entered into the system.