Exhibit 10.3

[MoneyGram Letterhead]
March 17, 2008
Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004
 
Ladies and Gentlemen:
          Reference is hereby made to that certain Equity Fee Arrangement
Letter, by and between Goldman, Sachs & Co. (“GS&Co”) and MoneyGram
International, Inc., a Delaware corporation (the “Company”), dated as of
February 11, 2008, which the parties hereby amend and restate in full, as more
fully set forth below:
          Reference is hereby made to that certain Amended and Restated Purchase
Agreement, dated as of March 17, 2008, as may be amended, by and among, the
Company and the Investors party thereto (the “Purchase Agreement”), which
amended and restated the purchase agreement dated as of February 11, 2008 (the
“Original Purchase Agreement”). All terms not defined herein shall have the
meaning ascribed to them in the Purchase Agreement.
          In connection with the GS Investors entering into the Original
Purchase Agreement and undertaking the obligations therein, and in consideration
of the services provided by GS&Co, an affiliate of the GS Investors, with
respect thereto, the Company paid to GS&Co on February 11, 2008 $7,500,000 (the
“Arrangement Fee”).
          In consideration of the GS Investors entering into the Purchase
Agreement, the parties hereby agree that, notwithstanding anything to the
contrary in the Prior Fee Letter or the Original Purchase Agreement, in no event
shall any of the Arrangement Fee be refunded to the Company.
          This letter agreement shall be deemed to be made in, and in all
respects shall be interpreted, construed and governed by and in accordance with
the internal laws of, the State of Delaware. This letter agreement may be
executed in one or more counterparts, each of which together be deemed an
original, but all of which together shall constitute one and the same
instrument.
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MONEYGRAM INTERNATIONAL, INC.
      
By:                                                             
Name:
Title:

 

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Accepted and agreed as of
the date first written above:
GOLDMAN, SACHS & CO.
      
By:                                                             
Name:
Title: