Western Union money transfer

[steveinbsas]

Burger fries and beer back then $2.50 now $ 8 to $10 depending on where you go or perhaps more. But some families here cook out their homes I can still get a burger and fries there for about $3. Not bad but they sure do not use top quality beef etc. Oh well.

For Pensador....if a hamburger has gone from $2.50 to $10.00 and the peso from 4 to 60/dollar.....the hamburger at anything under $37.50 is a win....I'll take a bag of them please.

Perhaps it wasn't clear that Pensador was referring to prices in dollars in the first post.

There was no hamburger (and certainly no hamburger, beer and fries) anywhere in Argentina for $2.50 pesos when the exchange rate was 4 to one.

If a hamburger, beer, and fries now costs ten dollars in a restaurant, the cost would be $600 in pesos at 60 to one.

PS: Watch out for those ice cream brain freezes.

They screw up the math every time.

 

[Caribbean Cool]

Perhaps it wasn't clear that Pensador was referring to prices in dollars in the first post.

There was no hamburger (and certainly no hamburger, beer and fries) anywhere in Argentina for $2.50 pesos when the exchange rate was 4 to one.

If a hamburger, beer, and fries now costs ten dollars in a restaurant, the cost would be $600 in pesos at 60 to one.

PS: Watch out for those ice cream brain freezes.

They screw up the math every time.

Perhaps it wasn't clear that Pensador was referring to prices in dollars in the first post.

There was no hamburger (and certainly no hamburger, beer and fries) anywhere in Argentina for $2.50 pesos when the exchange rate was 4 to one.

If a hamburger, beer, and fries now costs ten dollars in a restaurant, the cost would be $600 in pesos at 60 to one.

PS: Watch out for those ice cream brain freezes.

They screw up the math every time.

Burger fries and beer back then $2.50 now $ 8 to $10 depending on where you go or perhaps more. oh...AR....didn't know that. Teach an old dog new tricks....and ice cream for a reward. Brain freeze? Not nice....kind of arrogant.

 

[buzz]

For those expats from Australia...

I created a Western Union Australia account yesterday. I had to provide a 'current' Australian address and if I had lived there < 3 years my previous address. Also required to provide ID docs such as drivers license (Australia) and passport (Australian). I've just moved here so my details are still valid.

As of writing the offical AUDARS FX rate is approx 41.73. To get the AUS WU 'miracle rate' of 51.80 (25% higher) you have to receive the money into a local bank account (which I don't have yet). Selecting 'cash at agent location' yields a rate of 47.8 and is what I chose. For either option you can use Poli to pay instantly and the fee's scale nicely and are better then their Western Union US equivalent. The best combination is send to local bank account and pay via Poli, it gives the cheapest fee's + best rate (as of now).

When I attempted my first transaction I got an email saying I had to call a number to verify details of the transfer. It turns out for compliance reasons you need to provide a copy of bank statement from the bank account you sent the funds from. The bank statement does not have to show the transfer you just completed but must be from within the last 3 months. Must have your name, address and official 'bank logo' on it. This is a one off task.

I woke up this morning to find that the transaction had been cancelled, I figure because of the compliance department not reviewing my bank statement in time. I tried another transfer today and it was processed immediately and says I am able to pick the funds up tomorrow.

For the recipient details I used my Australian address (which is on my Australian license), full name and current Argentinian mobile number.

N.B It seems the Australian Western Union determines the rate at payout, not when the order is made. You will see this at the bottom of the Australian Western Union page when you make a transfer.

14 The actual exchange rate and your total amount will be determined at the time of payout.

-------------

My AUS WU normal rate should be about equal to a USD rate of 68.83. If I had a local bank account and used the 'miracle rate' it would be around a USD rate of 74.59. Not quite as good as a US WU 'miracle rate' but a good option for us Ozzies and it's just above the blue dollar rate. You can also do all the transfers yourself from your computer/phone (paying via Poli from your Australian bank account). No need to get someone back home to a Western Union branch and no visit to the cuevas. Will also update tomorrow to let you know how I go.

FYI for Ozzies. The closest thing we have to a Charles Scwab card to reimburse fees is an ING Orange Everyday card. You might want to get one if you haven't already.

Success. Only required Passport as proof of ID. Was told next time to include both my first and middle name in the first name field for the receiver as my middle name wasn't displayed but he still gave me the cash anyway.

The pesos I received was the exact same number that was quoted when the transfer was made indicating the exchange rate was the same (to the decimal), so perhaps even though the Australian WU site says it is set at the time of pickup that is not true.

The rate was 1 AUD = ARS 47.8012087 without fees.

AUD$250 transfer + AUD$7 fee. Received 11,950.30ARS. Rate with fees included is 1 AUD = 46.4992217 (11950.3 / 257). Official rate is 41.04.

AUD rate with fees converted to USD rate with USDAUD @ 1.44 (as of yesterday) equates to 1 USD = 66.95. Not bad.

 

[another]

I picked up mine 2 hours ago and got an extra 180 pesos comparing to the rate quoted at the time of sending ( on $500 Can ).
I also got a whopping 20 pesos tip, as she rounded the amount up to the next 100 - I asked her if she threw in an extra 20 pesos and she said:
"Si, la proxima vez si tenes 20 pesos me los podes devolver". Como va la mano, la proxima vez they will be rounding to the next 1000...
There's got to be an explanation to this phenomena, come on guys, any plausible guesses? WU is overstocked on the local eh...for the lack of a better term - 'currency'? And is offloading it in the expectation of it becoming completely useless?

 

[brandon]

I was able to complete my transaction at WU today, at a carrefour in olivos.
They had to call for additional pesos and it arrived within an hour.
I expected motochorros to also be notified but I made it home in one piece.

 

[steveinbsas]

Burger fries and beer back then $2.50 now $ 8 to $10 depending on where you go or perhaps more. But some families here cook out their homes I can still get a burger and fries there for about $3. Not bad but they sure do not use top quality beef etc. Oh well.

I saw a poster today in a restaurant window in Bahia Blanca offering a burger (double beef/double cheese), fries and a Coke for $249 pesos (about $4.15 USD at 60 ARS to one and $3.25 USD at 76,50 ARS to one).

PS: I would have ordered a bag full, but I don't eat that.....stuff.

PS2: For the same cost I bought a whole chicken, which is on the stove at this moment...and will provide enough meat for at least six meals.

And the cats will get the scraps, including all of the bones.

 

[steveinbsas]

Earlier this afternoon my sister-in-law sent $350 USD via Western Union from a Walgreen's in Illinois. I set up the transfer on line (as a guest) this morning to lock in the rate of $77.83. The fee was $7, so the net rate was $76.30. If there is a pick up fee in Argentina that will reduce the rate slightly.

It was not necessary to provide either her ID# or mine when setting up the transfer, but I made sure to enter my full name as it appears on my DNI. As Stan indicated, it is not necessary for the recipient to set up the transfer in advance. Will update after I have the $ in hand.

Instead of going to Punta Alta as originally planned, I picked up the $ this morning in Bahia Blanca at a small WU/Rapipago local. I first went to the kiosko closest to where I parked and was told their max payout was $10K. I walked four blocks to the WU/Rapipago only local. They had two windows to pay by Rapipago and a more secure area where they dispense the funds sent by Western Union..

I was asked to take a seat and a few minutes later I was called into the secure area. I showed the employee the transaction number and she immediately accessed it on the computer. I did not have to fill out any forms. There was a slight delay as the transfer had not included my mother's maiden name. The employee made a phone call and was then able to override the system and give me the funds.

PS: I was advised NOT to include my mother's maiden name in future transfers as it does not appear on my DNI.

PS2: There was no "pick up" fee.

 

[TheDonald]

PS to my previous post: Isn't this "channel" Western Union? If the payment is made in dollars and the subsequent conversion t pesos takes place outside of Argentina, on what grounds could the govt/BCRA shut it shortly?

Is there any basis a law (or perhaps a future decree) that stipulates that any transfers of funds from outside of Argentina must be made in dollars?

I don't work or have clients outside of Argentina that pay me in dollars that apparently (according to current regulations) must be sent in dollars and then converted to pesos withing five business days, but I do have retirement income in dollars.

Do you envision something like this being applied to all transfers of dollars to Argentina, essentially wiping out any competition among Western Union, Transferwise, and XOOM?

Do you envision the possibility of the govt to require that all temporary and permanent residents with the visa rentista or pensionado to have their monthly income sent to Argentina by wire transfer and then be converted to pesos?

The latter is a possibility I first envisioned after recently reading about those who are working in Argentina and billing foreign clients in dollars that now must be brought into Argentina and converted to pesos within five business days.

Sorry for the delay in responding.

Money transfer firms are almost like banks in most countries. They are heavily regulated and supervised by specific authorities as well as usually the national central bank. In developing countries with large populations that work in developed countries, remittances often equal a substantial percentage of GDP. Both the World Bank and the IMF publish reports on this. But if you think about countries like Mexico and Honduras, remittances from abroad comprise a huge portion of foreign exchange reserves. So, yes. Sovereign governments can control payment flows into their country's. And if WU wants to operate in Argentina, it would have to abide by any governmental decree.

When paid via card, the payment runs through the US payment system, through the BCRA, then is converted to pesos in Argentina. When paid in cash at the branch in the US, Western Union essentially sends an email to the Argentine WU, indicating to the latter to pay the recipient in pesos. In other words, the BCRA receives no dollars.

I don't think any decree would be applied to any other remittance firm. Consumers today prefer to pay by card for several reasons. They want the points and card is more convenient, to name two. So as long as the exchange rates are about at market, i.e. card and cash gives the recipient the same amount of money in the inbound country, consumers will almost always use card.

Regarding your pensionado and rentista question, the above applies. Pretty much every single other form of payment that is not WU cash pay in store, runs on government rails and goes from dollars in the BCRA to pesos at the local Argentine bank. So the question you pose is essentially the normal course of business in all other transactions.

I hope this is helpful.

 

[TheDonald]

Sorry for the delay in responding.

Money transfer firms are almost like banks in most countries. They are heavily regulated and supervised by specific authorities as well as usually the national central bank. In developing countries with large populations that work in developed countries, remittances often equal a substantial percentage of GDP. Both the World Bank and the IMF publish reports on this. But if you think about countries like Mexico and Honduras, remittances from abroad comprise a huge portion of foreign exchange reserves. So, yes. Sovereign governments can control payment flows into their country's. And if WU wants to operate in Argentina, it would have to abide by any governmental decree.

When paid via card, the payment runs through the US payment system, through the BCRA, then is converted to pesos in Argentina. When paid in cash at the branch in the US, Western Union essentially sends an email to the Argentine WU, indicating to the latter to pay the recipient in pesos. In other words, the BCRA receives no dollars.

I don't think any decree would be applied to any other remittance firm. Consumers today prefer to pay by card for several reasons. They want the points and card is more convenient, to name two. So as long as the exchange rates are about at market, i.e. card and cash gives the recipient the same amount of money in the inbound country, consumers will almost always use card.

Regarding your pensionado and rentista question, the above applies. Pretty much every single other form of payment that is not WU cash pay in store, runs on government rails and goes from dollars in the BCRA to pesos at the local Argentine bank. So the question you pose is essentially the normal course of business in all other transactions.

I hope this is helpful.

My guess is this trade won't become a smashing success. On paper, it sounds tempting - 78 pesos to the dollar when the cueva is at 64. That's an extra 14 pesos per dollar. But consider the costs. I gotta transfer money to a friend or family member. They have to get cash from their bank (who goes to the bank branch anymore?). Then they run to a WU branch to pay the transfer. In the meantime, I have to set up the trade through my computer or mobile phone.

So the transfer goes through. Now I have to pick up the pesos at a WU. My guess is you have to visit one of those big WU outlets - cuz if you transfer say $500US, the smaller ones won't have $39.000 pesos laying around. So I go to the WU branch, stand in line for at least 20 minutes, maybe 30. Then it takes 5-10 minutes for them to figure out the keystrokes and count out 39.000 pesos. Finally, I gotta immediately jump in a cab so I don't get robbed on the way out.

What are the economic savings? The difference between the WU rate and the cueva is 14 to the dollar - that's an extra $7.000 pesos. Divide that by 64 and you get $109US. Subtract the $8US in fees. Now you are down to roughly $100US.But if my family member put the trade on their Amazon credit card, that's 5% of transaction amount. So the opportunity cost for them, or the potential foregone based on a cash trade is 5% of $500, or $25US. So now we are down to economic savings of $75US. Now I consider my family member's time, my time, the chance of getting robbed walking out of a WU with one month's Argentine equivalent income?

It all sounds less appealing as I write this.

I suppose you could do a $2K trade. But that's $156.000 pesos. That's not a safe amount of money for a foreigner to walk around with in BA. And unless you are a huge spender, that much peso surplus means you are long pesos; you are betting on the peso staying stable or increasing in value vs. the dollar. Who wants that bet?

It all sounds tempting. But given my alternative - which is call the cueva and have him deliver any amount I want (total transaction time - 2 minutes) - I'll pass on Western Union.

 

[bobsnowpuppy]

i’ve now sent 3 of these WU transfers in the past two weeks, cash in the US, cash picked up at a WU outside of Capital. Just under 40,000 pesos each time and no issue yet. When CK was in power 5-6 years ago, I also did this with WU. Never an issue on either end. I suppose if you were going to receive a larger sum, you might want to check with your local Western Union to give them a heads up and they might tell you There’d be a one day delay to get the cash for you. The only reason I haven’t sent a larger amount is because the exchange rate seems to be creeping up daily. I just can’t imagine going to the Cueva and getting 25% less!