Why Western Union conversion rate is low compared to market?

Question

Why Western Union conversion rate is low compared to market?

Answer 1

Currency translation is done on a basis of bid and asked quotes.  The dealers make their money on the spread between what they pay and what they buy for.  I don't know what you mean by the "market".  If you are referring to number that you see in the newspaper, those are for large financial center banks dealing in millions of dollars (or equivalent) in one trade.  The spreads are very narrow,  Think of this as wholesale.  You are dealing in a small amount. The costs are higher and the spread is wider.  This is retail.  

You pay more per ounce when you buy one box of corn flakes than the grocery store does when it buys a truckload.

The other reason is that you can be ripped off because you have no choice.  Western Union knows that if you were a sophisticated financial consumer with other choices, you wouldn't be converting money at Western Union.  They know you have no other choice, so they aren't shy about ripping you off.

Answer 2

Because they need to not only make a profit for providing the service of conversion, but make enough of a profit to cover any losses should the rate change on them before they can convert the currency themselves at a bank.