Money Transfer Comparison: Xoom, Moneybookers, Western Union and Ikobo

[weblord]

Why is there a necessity for topic like this? Remember we are dealing with payments receiving worldwide and some countries don't have the capabilities of Paypal or a more advanced payment systems, it would be logical for us to discuss how can we charge them then or how can we collect payments from them, hence this topic.

Xoom Money Transfer:

I haven't used this yet but relying only on my research based on feedbacks found on google.com. Looks like the process of transferring money is entering the recipient's contact information, enter the amount you wish to send, select delivery method. In the delivery method, you have options such as money can be collected, hand delivered, entered into bank or entered into credit card, or payment via paypal. Just in the case of Fedex, you will be issued a Xoom tracking number for your money.

Pros:
Transfer fees are competitive, take advantage of online transactions without leaving your computer and ability to transfer direct into US bank accounts.

Cons:
They are not that available to various countries, like they don't transfer money to Thailand.

Moneybookers:

It has the security level similar to banking services and share trading services. If you don't have paypal, chances are you can use this as free alternative. You can pay online on over 3,500 online shops accepting moneybookers, it takes a few days to verify your account using your own credit card, supports 12 languages and payment in local currency is available in over 30 countries.

Pros:
Very competitive transfer fees, additional services like sending SMS and faxes are available to it as well. I have used it to get payment for my domain sales and it went well. The experience is similar to Paypal but only complicated control panel.

Cons:
A smaller network of users/membership compared to Paypal, hence it's not that common.

Western Union Money Transfer:

Fund transfers can be done either online or via walk-in at any money transfer agent. Accepts confirmation or verification via phone call or via email instructing of question and a password/answer that can answer the question. The Sender sends in the money with a question and an answer, he/she notifies the recipient either via email or phonecall the question and answer, and the money transfer agent will ask the recipient the question requiring the answer, and that's about it.

If done online, the sender will receive a personal MTCN (Money Control Number) number which they need to pass the information to the recipient so they can make a successful collection.

Pros:
Funds transfers within minutes, either online or offline, receiver will collect the money in local currency, huge network of agent located around the world, receiver doesn't need a bank account to receive funds.

Cons:
One of the expensive ways of transferring money only slightly lower compared to wire transfers, but if you're in a hurry, to receive the money, and you don't mind lower exchange rates applied to your money, then go with this one. I saw sites that claimed Western Union is a scam, no it's not, only some of it's users like there are scammer users of the internet, if done right, I prefer on the receiving end since this is so costly on the part of the sender.

Ikobo cards:

A reloadable prepaid visa debit card. It's not linked to your bank account, no need for any credit checks, very useful for people with bad credit rating. The money is transferred to the card and this money can be withdrawn from any participating bank ATM's worldwide with the VISA sign. The card is delivered via FEDEX complete with the four digit pin code which only the recipient knows. There is no virtually no risk since only the amount on the debit card is consumed and not directly connected to any bank account.

Pros:
Minimal reload costs, withdrawable from any bank ATM's with VISA logo, assignable to anyone worldwide, minimal credit checks required, avoids the need to carry large amount of money.

Cons:
Only usable with Visa ATM's which is occassionally limited in some parts of the world.

[iphones-2u]

Quality post but would like to stress to all our members only ever use Western Union for sending money to family and friends very important.

If a suppliers wants paying through Western Union walk away no matter how much you think you can trust them if you loose your money you have zero% chance of getting it back and don't fall for the old trick when the supplier say's just send the money and don't give me the control number until you have received your goods that way I can't get the money until you give me the control number, this is just not true they have ways around this and will not require this number to get hold of your cash "You have been warned"

[david_1978]

Paul you've hit the nail on the head there and all our members should take the above quote on board "Never send money through Western union unless their family or friends"

[weblord]

for payment discussion purposes, use western union if you have a client that you're not sure that will pay, it's more secure and beneficial if you're a good merchant on the receiving end