How Can You Use Western Union with a Credit Card

Western Union is an American multinational financial company headquartered in Denver, Colorado. The company started its operations in 1851 as New York and Mississippi Valley Printing Telegraph Company in Rochester. Later, in 1856, the company changed its name to Western Union Telegraph Company after merging with a competitor to make business easier. It has gone through many transformations to its current state over the years. But can you use Western Union with a credit card? 

You will learn about that later, so stay around. Since the platform is not like banks that fund their transactions independently. It has to depend on various sources of money for the transfers. Western Union has been a significant player in money transfers. Its money transfer reputation dates back to the 1860s. When it merged with its opponent, it also pioneered technologies such as telex and telegraph-related services (e.g., wire money transfer) and its main business of transmitting telegram messages.

However, the company did not remain in the communication sector for long due to financial challenges. In the 1980s, it partly ditched telecommunication services and focussed on money transfer services. Later in 2006, Western Union stopped the communication business completely and focussed on money transfer services. To date, the company is well known for its money transfer services. It is now the second-largest money transfer service provider in the world.

How to get started with Western Union?

You can start using the company’s services by first registering. That is, if you want to send and receive money online. It is crucial to know that you can even use the company’s services even if you do not have an account. You can receive money and collect it at a pick-up location. The same applies to sending money. You can just visit a location and transfer money to your recipient.

To register an account with the company, you should visit the account registration portal online and enter the necessary details. Once the page opens, you will enter your ID Number, email address, and password, which should have 8-16 characters, one lowercase letter, one UPPERCASE letter, one number character, and a unique character.

After that, you will need to enter the contact information whereby you will need to enter your mobile phone plus the country code. You will also create a security question plus an answer and tap Next to complete your account registration. Once your account is up and about, you can log in to transact.

How to send money through Western Union?

can you use western union with a credit card

The next thing you should know once you create an account with Western Union is how to transfer money to various world destinations. Recall that Western Union is a global money transfer service that allows you to send worldwide funds. Remember that you can send money online from your account or at a location.

You should first log into your account on the Western Union website or use the mobile app to send money online and enjoy the same convenience of surfing the web or checking your email as you can carry the process fast. Western Union allows users to send money online 24/7, from anywhere. The service is a convenient, fast, and safe online funds transfer option.

You can follow the procedure below to send money online for cash pick up through the service.

  • Log in to your account or register for free if you do not have one yet.
  • Choose country, amount to send, and delivery method (cash).
  • Enter your recipient’s name.
  • Use your card to pay for the transfer.
  • Check a confirmation by email and save the MTCN tracking number to share with your receiver for pick-up.

The above method is suitable for sending money for a pick-up at a location. However, you can also transfer finances to a mobile wallet by logging into your account, navigating to the transfer money section, and entering the recipient details. Once you send the funds, they will receive them in their mobile wallet. Money may also reflect on the account tied to the phone number provided.

Can you use Western Union with a credit card?

You can use Western Union with a credit card. The platform accepts MasterCard®, Visa®, and Discover® credit cards. You need to note that the card issuer’s cash advance fees and the applicable interest charges may apply. Therefore, a debit card is the best option to avoid the fees.

To use your credit card as a payment option on Western Union, you will need to provide the card details such as the card number, the expiry dates, and the CVV.

What is a credit card?

A credit card refers to a payment tool that allows you to borrow finances from your issuer. You can get it from your bank or credit union. Some mobile money platforms also issue the card in collaboration with some banks.

There are two types of credit cards. They include;

  • Secured credit cards
  • Unsecured credit cards

Secured credit cards are types of credit cards that require a security deposit to get them. The amount you deposit as security is there to repay your debt if, by any chance, you are unable to repay it. However, the money does not go anywhere since the concerned issuer will release it in your account for use when you qualify for the unsecured credit cards.

That is when you gain substantial credit scores. Usually, you get a secured credit card for rebuilding credit if you are building from scratch or have a bad credit point. Another type of credit card is the unsecured one. The card requires you to have a borrowing history whereby you have a certain number of credit scores.

Your scores determine the borrowing limit, whereby the more your scores, the higher your borrowing limit and vice versa. Credit scores determine your credit worthiness, and they are a result of your credit card usage. If you use your card well, you get high credit scores over time.

How to use a credit card?

There are various ways you can use a credit card. They include the following.

i) Buying goods and services

The primary use of a credit card is to buy goods and services. You can use the card online or at stores. Online usage requires submitting your card details such as the card expiry dates, the card number, and the security code when checking out. The systems will then deduct the amount you have spent.

When paying online, make sure that you buy from reputable sellers such as Amazon, Alibaba, eBay, Walmart, etc. That way, you can prevent fraud as some merchants are dishonest and can misuse your data, thus stealing money from your account.

ii) Withdrawing money

Credit cards allow one to withdraw finances from ATMs. The card usually comes with a PIN, just like a debit card, whereby you should enter it to authorize transactions. You can also withdraw funds from your card at a bank that supports the service provider. However, you should note that withdrawing money from a credit card attracts high fees since that is a cash advance. The APRs on cash advances are high.

iii) Build credit

Another way you can use a credit card is to build credit. You can be approved for a credit card with bad credit when applying for a secured credit card and making the necessary deposit. Most secured credit cards allow one to deposit a minimum amount and borrow against it.

In contrast, others allow you to deposit the most convenient amount for your case. For example, the Chime secured visa credit card for building credit cards does not have a specific deposit minimum. You can deposit any amount, and you are good to go.

You can also build credit with unsecured credit cards for bad credit. Any credit card can build credit as long as you use it well. Financial companies report any credit card usage to the credit bureaus. The only disadvantage of unsecured credit cards for bad credit is that they charge high-interest rates compared to secured ones. Furthermore, the credit limit for such cards is low.

How to get a credit card?

Getting a credit card is not that difficult, especially when applying for a secured credit card. You just need to deposit the right amount of money and receive your card. Also, you can get instant credit card approval for bad credit with no deposit from some issuers since there is no need for hard inquiries. After all, you already have bad scores.

It would be best if you were 18 years old to apply for a credit card. Anyone young than that cannot make informed decisions regarding financial issues. The federal government has put 18 as the minimum age to get credit cards.

You can apply for your card online or at a branch by providing the necessary details to the card issuer. The card issuer will send it to your physical address when you apply online. Once you receive your card, you should activate it to start using it for various transactions.

Bottom line

Western Union is an American multinational financial company headquartered in Denver, Colorado. The company started its operations in 1851 as New York and Mississippi Valley Printing Telegraph Company in Rochester. It allows you to send money to various destinations across the world. You can receive money in your bank account, your mobile wallet, and at a pick-up location. Western Union allows you to use a bank account, credit, and debit cards to fund your transactions.