The person receiving the money needs a way to pick it up
You cannot wire money directly into nothing. The person on the receiving end needs either a bank account, a money transfer account, or a physical location where they can collect cash. Before you send anything, ask them which of these they have access to — or which one they are willing to open.
The method you choose depends entirely on what they can receive. If they have no bank account and do not want one, you will need to use a service that lets them pick up cash in person. If they are open to it, opening a basic bank account or a money transfer account is often faster and cheaper than repeated cash pickups.
Key Takeaways
- Money transfer services like Western Union and MoneyGram let the receiver pick up cash at a physical location without a bank account.
- Some banks and credit unions offer basic accounts with no minimum balance that can receive wire transfers, which may be cheaper than repeated cash pickups.
- Prepaid debit cards and money transfer accounts (like those offered by Walmart or PayPal) can receive transfers and do not require a traditional bank account.
- Cash pickup services charge fees that vary by amount and location, so compare costs before sending if you are sending regularly.
- The receiver will need a government-issued ID to pick up cash at most locations, regardless of which service you use.
Using a cash pickup service like Western Union or MoneyGram
These services let you send money that the receiver picks up in cash at a physical location. You go to a Western Union or MoneyGram agent (usually at a grocery store, pharmacy, or dedicated office), give them the money and the receiver's information, and they issue a reference number. The receiver then goes to any agent location, gives the reference number and their ID, and receives the cash.
The receiver does not need a bank account, but they do need a government-issued ID — a driver's license, passport, or state ID card. If they do not have one, they cannot pick up the money this way. The service takes a fee from you (the sender), which varies based on how much you are sending and where the receiver is picking it up. Sending $100 domestically might cost $5 to $15; sending $500 might cost $15 to $30. International transfers cost more.
This works well for one-time or occasional transfers, but if you are sending money regularly, the fees add up quickly. A $100 transfer with a $10 fee means you are paying 10 percent just to move the money.
Opening a basic bank account for the receiver
Many banks and credit unions offer accounts with no minimum balance and no monthly fees, specifically designed for people new to banking. These accounts can receive wire transfers directly. If the person you are sending to is willing to open one, this is usually cheaper in the long run than repeated cash pickups.
The receiver will need to visit a branch or explore online with a government-issued ID and proof of address (a utility bill, lease, or bank statement). Some banks let you open an account entirely online without visiting a branch. Once the account is open, you can wire money to it using the account number and routing number, just as you would for any other bank account. There is no fee for receiving a wire transfer at most banks.
If the person has had banking problems in the past (overdrafts, fraud, or closed accounts), they may have trouble opening a standard account. In that case, they can look for a second-chance checking account, which is designed for people with banking history issues. These accounts have higher fees but are easier to open.
Using a prepaid debit card or money transfer account
Prepaid debit cards and money transfer accounts (sometimes called money services accounts) can receive wire transfers without being a traditional bank account. Services like Walmart MoneyCard, PayPal, Square Cash, and others issue cards or accounts that have a routing number and account number, so you can wire money to them just like a bank account.
The receiver opens the account online or in person, links it to an ID, and then has a card or account number to give you. Once money arrives, they can use the card to spend it or withdraw cash at an ATM. Some of these services charge monthly fees ($5 to $10) or per-transaction fees, so the receiver should check the fee schedule before choosing one.
The advantage over a bank account is that these services are often faster to open and have fewer restrictions. The disadvantage is that fees can be higher, and the account may have lower spending limits or fewer protections than a bank account.
Comparing costs: cash pickup versus account setup
If you are sending money once or twice, a cash pickup service is usually simpler and cheaper. A single $100 transfer with a $10 fee is less hassle than asking someone to open an account.
If you are sending money regularly — more than three or four times a year — the math changes. A basic bank account with no fees means you pay nothing per transfer after the initial setup. A prepaid card with a $5 monthly fee costs $60 a year. A cash pickup service at $10 per $100 transfer costs $120 a year if you send four times. Over time, an account almost always costs less.
| Method | Receiver needs | Cost per transfer | Best for |
|---|---|---|---|
| Western Union / MoneyGram | Government ID | $5–$30 per transfer | One-time or occasional transfers |
| Basic bank account | ID + proof of address | Free (after setup) | Regular transfers, long-term |
| Prepaid debit card | ID, online access | $0–$10 monthly fee | Regular transfers, faster setup |
What the receiver needs to bring to pick up cash
If you use a cash pickup service, the receiver must bring a government-issued ID — a driver's license, passport, state ID card, or in some cases a tribal ID. They also need the reference number you receive when you send the money. Without both, the agent will not release the cash.
Some services ask for additional information like a phone number or the sender's name, but the ID and reference number are the essentials. If the receiver does not have a government ID, they cannot pick up cash this way. They would need to open an account instead.
Sending money internationally without a bank account
The same services work internationally, but fees are higher and the process takes longer. Western Union and MoneyGram both operate in most countries and let receivers pick up cash without a bank account. International transfers typically take one to three business days and cost $15 to $50 depending on the amount and destination country.
Some countries have restrictions on how much cash can be picked up at once, and some require the receiver to provide additional information beyond their ID. Before sending, check the service's website for the specific country — fees and requirements vary widely.
Frequently Asked Questions
Can I wire money if the receiver has no ID?
Not through standard services. Western Union, MoneyGram, and banks all require a government-issued ID to receive money. If the person has no ID, they would need to get one first — usually through their state's DMV or a passport office — before you can send them money this way.
How long does it take for money to arrive?
Cash pickup services usually make money available within minutes to a few hours. Bank-to-bank wire transfers typically arrive within one business day, sometimes the same day if sent early in the morning. Prepaid card transfers vary by service but are usually available within 24 hours.
What if I send money to the wrong person?
With cash pickup services, if the wrong person picks up the money using the reference number, it is gone. You cannot reverse it. With bank accounts and prepaid cards, you can contact the bank or service to dispute the transfer, though recovery is not may provide. Always double-check the receiver's information before sending.
Is it cheaper to send money through my bank or through Western Union?
If the receiver has a bank account, your bank's wire transfer fee (usually $15 to $30) is a one-time cost. Western Union or MoneyGram fees are per transfer, so repeated sending costs more. If the receiver has no account, Western Union or MoneyGram is your only option, and the fee is built in.
Can the receiver use the money right away after pickup?
Yes. Cash picked up at Western Union or MoneyGram is available when ready. Money deposited into a bank account or prepaid card is usually available the same day or next business day, depending on the bank or service.