Western Union Survey Highlights Change In Consumer Spending, With 79 Percent Favoring Credit Card Regulations

ENGLEWOOD, Colo.--(BUSINESS WIRE)--As The Credit Card Accountability, Responsibility and Disclosure Act is implemented, businesses will witness a change in consumer spending, with cash and pre-paid cards being a more desirable option among consumers.

“Western Union has a full portfolio of money management options that can help today’s consumers with their financial service needs”

According to a new survey from The Western Union Company (NYSE: WU), a world leader in global money transfer services, 79 percent of consumers favor regulations that place limits on credit card fees, such as interest rates and late payment penalties. Another 60 percent of consumers are strongly in favor of tighter regulations. In addition, 27 percent of consumers reported using cash more often than in the past.

“Consumers are clearly looking for more options to better manage their money, including how they use and rely on their credit cards to make everyday purchases,” said Jorge Consuegra, senior vice president, U.S. Product Management, Western Union.

The Western Union survey also revealed that while the use of cash offers consumers better ways to control spending, and helps avoid accumulating debt, 66 percent of those surveyed noted their inability to make online purchases.

“While cash can, indeed, help consumers rein in their spending and assert more control over their finances and purchasing power, there are clearly times when card-based transactions are preferred and necessary,” Consuegra added. “Beyond providing consumers with global money transfer services, Western Union also offers convenient pre-paid debit cards, which can be reloaded and do not carry interest rates or purchase-related fees.” ¹

The company is currently piloting the Western Union^® MoneyWise™ Visa^® Pre-Paid Card² with Overnight Home Delivery service in the St. Louis and Kansas City markets.

Western Union^® MoneyWise™ Card - How It Works: The Western Union MoneyWise™ card is sent overnight via FedEx Priority Overnight^® service so that it arrives at the recipient's door the next day and can be activated by the receiver with the Western Union Money Transfer Control Number. The card is protected by the Visa zero liability policy.

The Western Union MoneyWise Visa prepaid card provides the money transfer recipient with a great tool for spending and managing their money. It can be used anywhere Visa debit cards are accepted including online as well as withdrawing cash at ATMs³. Additionally, following the receiver’s enrollment, more money can be added to the card by both the sender and the receiver with valid information, at nearly 44,000 Western Union Agent locations throughout the U.S. or online.

The company also offers a pre-paid debit Master Card.

“Western Union has a full portfolio of money management options that can help today’s consumers with their financial service needs,” Consuegra concluded.

Survey Methodology

The survey, commissioned by Western Union and conducted by GfK Roper Public Affairs & Media polled 1,000 people 18 years old and older between May 21 and May 24, 2009.

¹ Other fees apply.

² Overnight Home Delivery Service and MoneyWise Prepaid Visa Cards only available to send within the continental U.S., except to Arizona and P.O. Boxes. The MoneyWise Visa prepaid card is subject to terms, conditions, restrictions and fees for use. Use of the card may be subject to user identification requirements and transaction and load limits. The Western Union^® MoneyWise^TM Visa Prepaid Card is issued by MetaBank pursuant to a license from Visa U.S.A. Inc. MetaBank, Member FDIC

³ATM withdrawals are subject to a fee of $1 per use plus applicable ATM operator fees apply. ATM withdrawals limited to $500/day.

About Western Union

The Western Union Company (NYSE:WU) is a leader in global money transfer services. Together with its Vigo and Orlandi Valuta branded money transfer services, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. It operates through a combined network of more than 379,000 Agent locations in 200 countries and territories. Famous for its pioneering telegraph services, the original Western Union dates back to 1851. For more information, visit www.WesternUnion.com.

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