Why does MoneyGram often charge more for domestic US transfers than for international ones?

Asked Nov 3, 2011· 1 answer ·Americas, Developed Markets, North America, United States
Faisal KhanAnswered Nov 3, 2011
Up front, I will admit, I do not know exactly why this occurs, but I could fathom a guess.

In traditional overseas payment, the $9.99 fees is shared by the sending franchisee and MoneyGram, whilst on the receiving end, the receiving franchisee makes money on the exchange rate difference (you never get the official interbank rate).

For transactions within the country, I am speculating that because there is no money to be made on exchange rate difference, both the franchisees are permitted by Moneygram to charge a fees.
Money Transfer Operators (MTO)MTO EconomicsLegacy MTOsRemittance Agents AmericasDeveloped MarketsNorth AmericaUnited States
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