Xoom.com - Money Transfer Service Review
Most people know about Western Union because it is such an old company and it has such a huge international presence. However not a lot of people are aware of Xoom.com, a new company that is aiming to take business away from Western Union by being leaner and more efficient company. Xoom claims that most transfers take as little as 5 minutes to complete. They also allow people to schedule recurring transfers so they are automated. Now people don't need to go to a counter each week and hand over money, they can log on to the web and click a few buttons.
The technology may be there to transfer the same day but most users will find that after you hit for the first time Xoom then informs you that you need to follow some regulations and need to verify information and that might take anywhere from 2-4 business days. So if you are looking to do a quick transfer a Wire transfer might be faster and less complicated. However you will get a better rate and future transfers should be much faster. I wish Xoom was more honest by setting peoples expectations on the very first transfer. People should know that the regulations and fraud prevention measures are followed that make the first transfer very slow.
Other users have complained they have to send photo copies of their drivers licenses or government ID before the transfer will work. So if you are not a citizen or don't have a valid id then you might be able to use this service. A third user that we found complained that someone inside Xoom changed the name of the recipient. Their family member could not get to the bank right away because he was sick and when they did get around to the bank the family member found that someone else had claimed the money under a different name.
In the disclaimer on Xoom's website, they state that the first transfer will be delayed. Xoom moves your money fast, and keeps your security a top priority. Speed of money transfer service is subject to many factors, including:
- Your Transaction may be delayed or cancelled in the course of our efforts to verify your identity.
- Validate your Transaction instructions and Payment Instruments
- Contact and locate you.
- Comply with applicable law.
- Approval by the Xoom proprietary anti-fraud verification system.
- Funds availability from sender's payment account (checking, credit or debit card).
- Recipient-country banking hours and banking system availability.
- Difference in time zones, weekend bank processing availability, and local bank holidays.
- Receiving agent hours of operation.