Millions of people send money to Mexico from the United States every year. According to the Bank of Mexico, the total remittances from the USA to Mexico were greater than $63 billion USD. These remittances are fundamental for the Mexican economy, as they support families and communities.
However, with so many options available, choosing the most efficient way to send money safely and quickly can be a challenge.
Therefore, in this article we want to explain what factors you should consider when sending money to Mexico, such as transfer fees, the different options, as well as recommendations to take care of your money.
How much money can be sent to Mexico?
At present, there is no legal or regulatory limitation on the amount of funds that can be transferred to Mexico from the United States. However, it is important to note that if you send more than $10,000 USD in a single transaction, you must file Form 114 with the IRS (Internal Revenue Service).
On the other hand, companies that help you send money from the US to Mexico may have different limits that you should find out before sending the money, and these amounts are usually less than $10,000.00 USD.
|
Provider |
Max per month* |
|
Elektra Go |
$ 7,999 |
|
Western Union |
$ 7,499 |
|
Wise |
$ 10,000 |
|
Remitly |
$ 3,000 |
|
* These amounts correspond to the amounts visible on each company's website. Visit each one for more information. |
|
Please note that in any case, limits may also vary depending on the country of origin, the country of destination, and the delivery method.
Factors to consider when choosing a method to send money to Mexico
Choosing the easiest way to send money to Mexico depends on your individual needs and preferences, but there are several factors that apply to all circumstances and that you should be aware of.
Transfer fees
These are the costs associated with the transfer of money, including fees, exchange rate charges, etc. Choose a provider that offers competitive rates that suit your needs.
Exchange rate
This is the rate at which the currency of the country of origin is converted to the currency of the country of destination. Usually, when United States dollars (USD) are sent to Mexico, they are converted into Mexican pesos (MXN) according to the exchange rate.
The exchange rate is a factor that depends on other external factors and can change significantly from one day to the next, so it is important to check the exchange rate on the same day you want to transfer the amount.
Transfer speed
This is the time it takes for the money to reach the person who receives it. If you need the money to arrive quickly, consider options such as bank transfers or online money transfer services, as they are usually faster.
Please note that the transfer speed may also depend on the chosen receipt method, such as cash, bank deposit, etc.
Security and fraud protection
This is the protection that the provider offers against the theft, loss or fraud of your money. It is always important to choose a provider that is regulated by the financial authorities and that has strong security measures.
Convenience and ease of use
This is the ease with which you can make the money transfer. There will be companies where you will have to go to a physical branch to send your money, which can be annoying and time-consuming. On the other hand, there are companies that allow you to send money to Mexico from a mobile app.
In these cases, consider whether the provider offers customer support in Spanish to resolve all your doubts and ensure that your money reaches its destination.
Ways to send money to Mexico
There are different ways to send money to Mexico. Here is an overview of each one.
Bank transfers
In general, banking financial institutions have the same characteristics:
- They allow you to make national and international SPEI and SWIFT transfers.
- Each institution has an application for operations, but you can also make transfers through online banking or by going to a branch.
In the same way, they share the same advantages and disadvantages.
Advantages of sending money by bank transfer
- Money movements are reflected in a short time.
- They have a wide network of branches.
Disadvantages of sending money by bank transfer
- Higher cost for international transfers compared to some platforms.
- Some international transfers may take up to 24 hours.
- The online banking interface can be less intuitive and very different between banks.
The main differences you will find between banks are factors such as the interest rate, the exchange rates, and the number of branches near your location.
Money Transfer Operators (MTOs)
MTOs offer fast, convenient, and secure money transfers, but their fees can be higher, and the exchange rate may not always be the most favorable.
Mobile wallets and apps
These apps, such as Elektra Go, allow you to store, send, and receive money digitally using your smartphone. While convenient, they may have limitations on transfer amount.
Cryptocurrency transfers
Cryptocurrency transfer apps enable sending and receiving cryptocurrencies like Bitcoin, Ethereum, and Litecoin. While fast and secure, cryptocurrency values can fluctuate significantly, posing a risk.
This option is not so common to send money to Mexico because the value of currencies can change abruptly from one day to the next. This is one of the main risks of using cryptocurrencies as a currency for transactions.
Telegraphic transfers
Traditional telegraphic transfers involve sending a message with instructions to deliver money to the recipient. This method is suitable for sending money to remote areas or those without bank accounts but can be slow and costly.
Peer-to-Peer (P2P) transfers
P2P apps like Venmo and Zelle allow direct money transfers between individuals. However, neither currently supports direct transfers to Mexican bank accounts.
Checks and money orders
These traditional methods involve writing out a check or money order payable to the recipient. While secure, they can be slow and require in-person visits to a financial institution. MoneyGram and Western Union are both cash transfer providers.
Tips for getting the most favorable rate when sending money to Mexico
- Compare rates and fees offered by different platforms and services.
- Utilize apps and online services for better rates.
- Send larger amounts to reduce per-transaction costs.
- Compare exchange rates offered by different providers if sending from a non-Mexican peso account.
- Look for special promotions or limited-time discounts for sending money to Mexico on specific dates.
- Sign up for alerts on online platforms when the exchange rate is favorable.
- Avoid sending money when the exchange rate is unfavorable.
- Compare delivery options and costs (bank deposit, cash pickup, home delivery).
- Read reviews and feedback from other users before using a platform or service.
- Choose a reliable platform or service with adequate security measures to protect your personal and financial information.
Choosing an excellent money transfer service to Mexico
There are many ways to send money to Mexico, but choosing an excellent one can be difficult. To make a good choice, think about what you need, look at how much it will cost, how long it will take, and how safe it is. Before you decide, ask yourself these questions:
- How much money do you need to send?
Fees and commissions can vary depending on the amount transferred. Larger transfers may attract lower fees per unit, while smaller amounts may incur higher relative costs.
- How frequently do you send money?
If you send money regularly, consider choosing a service with low per-transaction fees. This can significantly reduce the overall cost associated with frequent transfers.
- How would you like your friend or family member to receive the money?
Consider the recipient's preferred method of receiving the funds. Options include bank deposit, cash pickup, and home delivery. Each method may have different fees and delivery times.
FAQ
Q: What are the most common ways to send money to Mexico?
A: Popular methods include bank transfers, money transfer apps, telegraphic transfers, checks, and money orders.
Q: What is a cheap way to send money to Mexico?
A: The cheapest method depends on the amount, origin country, and urgency. Money transfer apps often offer the lowest fees.
Q: What is a fast way to send money to Mexico?
A: Money transfer apps are generally the fastest, with transfers processed in hours or even minutes.
Q: What is a safe way to send money to Mexico?
A: All mentioned methods are relatively safe when using reputable platforms and providers. Bank transfers and money transfer apps often have robust security measures.
Understanding your needs for sending money to Mexico
Determining the amount you need to send, the frequency of transfers, the desired speed, and the recipient's preferred delivery options should be your top priority when choosing the most convenient way to send money to Mexico.
Staying informed about current fees and exchange rates is crucial. Remember, it's essential not to rush your decision, as the security of your transactions is paramount.
By following these tips, you'll be empowered to make an informed decision and select the most suitable method for sending money to Mexico securely, affordably, and efficiently.
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