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Reviewed by David Kindness
The three leading money transfer services are PayPal, MoneyGram, and Xoom, which have varying levels of fees that can be calculated online, such as the MoneyGram fee estimator. Typically, these companies charge varying fees based on the origin country and receiving country; the size of the transfer; whether the recipient account is a bank account, debit or credit card, or other transfer accounts; and whether the transfer is between family members or in payment for goods.
In this article, we'll compare PayPal fees to MoneyGram fees and Xoom fees, all based on the type of transaction whether personal, commercial, or international.
Key Takeaways
- PayPal, MoneyGram, and Xoom are the three leading money transfer services that can be used to send money to recipients in the United States and overseas.
- PayPal does not charge a fee if both sender and recipient have a PayPal account and the funds come from a bank account or PayPal balance.
- MoneyGram fees range from $1.99 if no debit or credit card is used.
- Xoom charges a 1% fee with a cap of $10 when sending from a bank account.
- These platforms aren't the only way to transfer money and you can turn to other options as well.
Transfer Fees: PayPal vs. MoneyGram vs. Xoom
Transfer fees are standard charges collected by these money transfer platforms in order for them to be profitable. While some can be thought of as service charges, other transfer fees are derived from other fees, such as international currency exchange fees, that are passed on to the individual. Transfer fees ultimately allow PayPal, MoneyGram, and Xoom to be profitable.
PayPal Transfer Fees
PayPal does not charge a fee, either to the sender or recipient, when funds are sent within the United States. Both sender and recipient must have PayPal accounts. The funds must come from their PayPal balance or linked bank account.
Fees are only charged on PayPal if the money is coming from a linked credit or debit card, if money is being sent internationally, or if you are collecting payment as a merchant or vendor. If the funds are coming from a credit card, debit card, or PayPal Credit, the platform charges 2.9% of the transaction plus 30 cents. PayPal also does not charge a fee for shoppers, whether online or in stores, operating instead like a secure bank account to pay for goods and services.
MoneyGram Transfer Fees
MoneyGram fees tend to be higher than PayPal's: for a direct transfer from a sender's online bank account, debit, or credit card to a recipient's debit card, the company charges a percentage fee with a minimum of $2.00. The more you send, the higher the fee, and the maximum you can send is $5,000. If the cash will be picked up in person at a MoneyGram location by the recipient, the fees increase. Sending from a debit or credit card also leads to higher fees.
Xoom Transfer Fees
Xoom, which is owned by PayPal, charges a fee of 1% on all transactions up to $999, and $10 on transactions of $1,000 or more when sending from a bank account. Sending with PayPal USD is free, but sending with your PayPal balance or with cards has a higher fee. There are three levels of verification that offer higher transfer limits. At the first level, the 24-hour limit is $2,999, the 30-day limit is $6,000, and the 180-day limit is $9,999. At level two, the 24-hour limit is $10,000, the 30-day limit is $20,000, and the 180-day limit is $30,000. For those at level three, the 24-hour limit is $50,000, the 30-day limit is $60,000, and the 180-day limit is $100,000. To understand how Xoom money transfers work, users can also estimate fees at Xoom's website.
PayPal Merchant Fees
PayPal offers a host of payment processing services for merchants. Its standard transaction fee for PayPal Checkout is 3.49% plus 49 cents. If the PayPal account is located outside the U.S., the fee is 3.49% plus the fixed fee rate for the other country, plus an additional percentage-based fee for international commercial transactions of 1.5%.
International Transfer Fees: PayPal vs. MoneyGram vs. Xoom
When it comes to international transfer fees, a foreign currency exchange rate is involved, making the transaction more costly. In addition, platforms such as MoneyGram openly disclose that the company makes money off of the foreign currency spread, which fluctuates daily.
Important
When sending money abroad, the service provider typically earns money on the foreign currency spread in addition to the stated fees being charged.
PayPal International Transfer Fees
PayPal charges a 5% transaction fee when U.S. account holders send money to other PayPal account holders located outside the U.S. A minimum fee of $0.99 applies, and the maximum fee is $4.99.
MoneyGram International Transfer Fees
MoneyGram operates in more than 200 countries and territories. It has digital capabilities in more than 150 countries and 400,000 physical locations that are either company-owned or operated by a business agent. When it comes to global money transfers, the company earns revenue in two ways: on the transaction fee and also on the foreign currency spread.
A customer sending $100 to a bank account in Mexico would pay $1.99 if the funds originate from a debit and $6.49 if from a credit card. If the funds are being sent for cash pick-up, the MoneyGram fee charged for debit would be $3.99 and fee charged for credit is $8.49. As of April 16, 2025, MoneyGram is quoting an exchange rate of 19.7965 pesos to the dollar.
Xoom International Transfer Fees
Xoom, which also makes money on foreign currency transactions, offers a slightly worse exchange rate of 19.2136 pesos to the dollar as of April 16, 2025. In addition, its fee structure is comparable to MoneyGram's.
On a $100 transfer, Xoom charges users $2.99 if the money comes from a PayPal balance or bank account and is deposited directly into a bank account, or $3.99 if the funds come from a debit or credit card. Fees for cash that is picked up by the recipient in person, no matter how it's sent, will be charged $3.99 in fees.
Comparing Fees Between MoneyGram, PayPal, and Xoom
Transfer fees range based on the kind of transaction you are trying to make. As a rule of thumb, PayPal is the best option to transfer money between bank accounts, MoneyGram or Xoom are usually cheaper for transferring money from a sender's debit or credit card to a recipient's bank account, and MoneyGram has no fee for international transfers.
| Transfer Fees: MoneyGram, PayPal, Xoom | |||
|---|---|---|---|
| Transfer Fees | PayPal | MoneyGram | Xoom |
| Within the U.S. (bank account → bank account) |
No fee | $1.99 | 1% on all transactions up to $999, and $10 on transactions of $1,000 or more |
| Within the U.S. (debit/credit card → bank account) | 2.9% of the transaction + $0.30 flat fee | $1.99 | $1.99 |
| International ($100 from U.S. to Mexico) | $5.00 | No fee | $2.99 |
MoneyGram Fees FAQs
What Are MoneyGram Fees?
MoneyGram fees are the service fees charged by the company in order to process your transaction. In the case of sending money internationally, MoneyGram fees also factor in a currency exchange rate fee. MoneyGram makes money from currency exchanges.
How Much Does It Cost to Send a MoneyGram at Walmart?
MoneyGram fees at Walmart are the same at any other MoneyGram location: typically a flat $1.99 for most transfers within the United States, if being sent directly to a recipient's bank account or debit card.
How Much Does MoneyGram Charge to Send $200?
Fees vary. Within the United States, for example, MoneyGram charges $2.99 to transfer $200 from a sender's debit card to a recipient's online bank account.
Which Is Cheaper: Western Union or MoneyGram?
Within the United States, Western Union is cheaper than MoneyGram to send $100 via an online bank account: $0 for Western Union compared to $1.89 for MoneyGram. And Western Union doesn't charge for sending via bank account or debit card, but does charge $2.50 for credit card funding. MoneyGram charges $6.59 for credit card funding.
How Do I Receive Money From MoneyGram?
Money can be received via MoneyGram through a direct online bank account or debit card deposit or picked up in cash at a MoneyGram location.
The Bottom Line
When using a money transfer platform, transaction fees vary greatly depending on how you are sending the money, where you're sending it, and how it will be received. Online platforms aren't the only way to transfer money, however: if these fees are too expensive for you, check out some other low-cost ways to transfer money.
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