$25 for an international bank transfer sounds really expensive. I probably pay something like that too if I wanted to do it physically, but it’s $5 online and free within the EU.
If both ends of the transaction have bank accounts, and the sending end has internet banking (should be pretty universal even for expats in the EU at least, unsure about North America and elsewhere) then using Western Union seems like a complete ripoff.
In El Salvador banks transfers within the same bank are free, and transfers between banks are free or cost less than USD 1. Depending on which network is used, they are instant or take less than an hour. One network is 24/7 and the other one works in banking hours.
Remittances, like Western Union, just take a few minutes but have higher fees. Especially for smaller amounts.
International bank transfers cost between USD 11 up to USD 40. Both the sender and receiver pay. They are only worth for larger amounts, for example between El Salvador and the U.S, if the transfers are done before noon and during a working day, they usually arrive on the same day.
Depositing U.S. checks in El Salvador banks is free or cost less than USD 5. This is very slow though, and may up to 30 working days to clear. It may be faster now, but it depends on the bank.
That's something most of us forget. I was wondering why you wouldn't just do a bank transfer, it's cheap and everyone have a bank account, but that's because I happen to live in a country where the EU ensures that I'm not paying insane fees and where you legally must have a bank account.
Personally I'm still not sure that Bitcoins and Western Union should be part of the solution. It seems "simple" for a country to just cap feed and ensure that everyone have access to banks.
This happens everywhere. When I was 20 I went to a UK university as an exchange student and tried to open a bank account (needed for some reason I can’t remember). I expected that to cost zero and not come with any strings attached but the bank person started talking about minimum deposits and yearly fees just to open a standard account.
In El Salvador simplified bank accounts require no minimum deposit, can send and receive instant bank transfers to other banks, and some allow the account holder to receive a remittance from the US just by typing remittance ID and amount.
No need to go to the bank either. They can be opened from a website or app with a selfie and a picture of both sides of the ID card.
There are "simplified bank" accounts that are very easy to open in El Salvador. They are basically open to anyone and charge few fees. They can even be opened using and app, a photo of the ID card and a selfie.
It is also possible to receive a remittance from family using the app by filling a form with two textboxes: 1. MTCN/Remittance code and 2. Remittance amount.
Those who are under 18 cannot access this service though.
The salvadorans living in the U.S., even if they didn't enter the U.S. legally, usually have bank accounts too.
Not sure if there is a receiving end fee, I don’t think so, but again my fee for iban/BIC (formerly swift) is $0 within EU/SEPA and $5 otherwise. So I expect to be able to transfer to El Salvador for $5 if I read the prices table correctly.
We do have the similarly named SIPA for transfers between the SICA countries (Central America and Dominican Republic) Unfortunately SIPA is not that widespread. It costs about $7.
If both ends of the transaction have bank accounts, and the sending end has internet banking (should be pretty universal even for expats in the EU at least, unsure about North America and elsewhere) then using Western Union seems like a complete ripoff.