Wal-Mart cuts money transfer fees for holidays

Shoppers cart their purchases from a Wal-Mart store in Alexandria, Virginia November 12, 2009.

SAN FRANCISCO (Reuters) - Wal-Mart Stores Inc (WMT.N), which has already cut prices on everything from toys to turkeys to TVs to win holiday shoppers, is now reducing the price it charges for money transfers.

Through January 31, U.S. Wal-Mart stores will charge customers a $7 fee to send up to $200 anywhere in the United States or abroad. Previously, the price for a money transfer started at $9 for an international transfer and $11 for a domestic one.

Money transfers can be sent and received at its more than 3,500 U.S. stores. The transfers are offered through MoneyGram (MGI.N).

Spokeswoman Linda Blakley said a large percentage of customers choose to transfer money from one Wal-Mart store to another.

"Lots of our customers come in and send it to relatives or friends ... and the recipients come to the store to pick it up," she said.

For the holiday season this year, Western Union (WU.N) is offering "$50 for $5" where consumers can send up to $50 in the United States for a $5 fee. Its program runs through December 26.

(Reporting by Nicole Maestri, editing by Dave Zimmerman)