Usien Western Union made it's name as the fastest international transfer service available, but Dallas-based competitor MoneyGram may soon surpass them in customer retention.
It's an oft-repeated pattern in families of diverse nationalities and cultures: A family member goes to the United States to work and person sends money back to relatives in their home country. Repeat until further notice.
This is a way of life that could soon come to a screeching halt, or at least dramatically slowed down. A recent New York Times article detailed how several big-time banks are cutting down on international money transfers, particularly to Latin American and African countries. Transfer costs are skyrocketing, and some are considering slashing services altogether.
It's a move that is intended to curtail American dollars being sent to drug traffickers and terrorists. Yet the biggest effect could be on Latin American migrant workers, who often use international transfer services to wire money to relatives.More »