What does Trump’s announcement on the border wall mean for money transfers?
On January 25, 2017, President Donald Trump announced that the US will move forward with building a border wall between the United States and Mexico.
According to Mexico’s Central Bank, currency transfers to Mexico post-election in November 2016 were up 24% from November 2015. Some experts attribute the rise in remittances per individual to the value of the peso, which dropped 10% after Trump was elected.
When the peso weakens against the dollar, it takes more US dollars to purchase the same amount of pesos.
- If you’re sending money to Mexico, it’s more important than ever to compare exchange rates and fees to make sure you’re getting the most for your money.
- If you’re using a bank or cash transfer service, consider switching to an independent provider so you can maximize the currency transfer your loved ones will receive.
Take advantage of low fees and competitive exchange rates when sending money to Mexico.
When you need to get money to a loved one overseas, the last thing you want to deal with is navigating a potentially complicated and expensive process. Sending money from the United States to Mexico doesn’t have to be expensive. Compare the transfer fees and exchange rates of the range of options available to get the best deal.
From bank transfers and online transactions to options that allow recipients to collect your funds within minutes, sending an international money transfer to Mexico is easy. But do your research and shop around for the best available deal.
Laws and legal documents when transferring large sums of money into Mexico
Save money on your personal or business international money transfer today. Fill in the form and you’ll be contacted by a foreign exchange expert to have an obligation-free discussion about your options.
With over 17 years of foreign exchange expertise and over $100 billion transferred, OFX can help with all your currency exchange needs, including:
- Buying property abroad
- Regular overseas payments
- Risk management
- If the provider quotes a different rate to the one above please let us know
Banks vs. money transfer providers
We use banks to take care of all our other financial needs, so surely we should use them when sending an international money transfer, right? Not necessarily. While major US banks offer money transfer services, they usually present less competitive exchange rates coupled with high transfer fees.
You can save money by using the services of a dedicated money transfer company. These providers specialize in handling overseas money transfers, offering attractive exchange rates and affordable fees. Meaning you save money — and your recipient ends up with more pesos in their pocket.
Maria sends money to Mexico
Maria studies and works in the US. She’s saved up a sizable amount of money she wants to send home to her family in Mexico. She approaches her bank about transferring $1,000, but she’s dismayed to discover that the bank’s exchange rate is not nearly as good as she’d hoped. Eager to save as much money as possible, Maria compares her bank’s exchange rate and transfer fees with those of a specialist money transfer company.
|Major US bank||Money transfer service|
|Exchange rate||1 USD = 14.65 MXN||1 USD = 15.85 MXN|
|Transfer method||Bank account deposit||Bank account deposit|
|Transfer speed||2 business days||2–4 business days|
|MXN received||14,650 MXN||15,850 MXN|
Maria’s family could receive 1,200 extra pesos (about $75) if she used a money transfer company over her local bank. Not only that, but Maria would also save $10 on the transfer fee.
How do international money transfers work?
An international money transfer allows you to send money to a recipient overseas. Generally, it involves you providing funds to a bank or an independent transfer provider, which then sends the money to your recipient in another country — in this case, Mexico. This can be done in person or online. You can use cash or transfer funds from your bank account, which are then either deposited into your recipient’s bank account or made available as cash for them to pick up at a location in their country.
How to compare transfer companies when transferring money to Mexico
- Exchange rate. See how the rates offered by one provider stack up against those offered by competitors. Also, remember that some providers may offer a great exchange rate but also charge high fees.
- Fees. Most companies charge a transfer fee when you send money overseas. Learn exactly what that fee is for each complete transfer. Some providers waive this fee if you transfer more than a set amount.
- Transfer methods, options and times. Can you schedule transfers online, over the phone or through an agent? Will they accept payment with your bank account, credit card or debit card? Can you schedule payments ahead of time or take advantage of changing market rates with a forward contract? How long will it take each provider to transfer funds to your recipient?
- Minimum amounts. If you need to transfer small amounts of money, stay away from providers that impose a high minimum transfer limit.
- Customer service. Is help available when you have a question regarding a transaction? Compare the availability of customer support options and hours.
Ways to send money to Mexico from America
- Bank transfers. Most major U.S. banks will allow you to send money to Mexico. Click here to see a list of all the SWIFT codes for Mexican banks.
- Money transfer providers. Providers like Xoom and WorldRemit can help you quickly and easily transfer your money online.
- Transfer companies with cash pickup. Providers like Western Union, MoneyGram and Ria allow you to send funds that can be picked up from an agent location in Mexico.
- PayPal. Given its fees, PayPal is an option when sending smaller amounts to Mexico.
- Checks. Although not the quickest method, sending an international check is an option when you need to send money overseas. These can be obtained from your bank.
Emergency cash transfers in Mexico
You might need to send an emergency cash transfer to Mexico — for example, if a relative traveling through the country loses their wallet. When you need to transfer funds urgently, review the exchange rate and transfer fee that will apply to your transaction.
The fastest possible transfer option will usually charge more, so compare the details of your transaction before you commit.
Find a money transfer location near you
Tips for picking up cash in Mexico
Whether you’re picking up cash in Mexico or any other country, take a safety-first approach. Use common sense, such as keeping your cash hidden and depositing it with your bank as soon as possible. Taking a friend along with you to collect the funds is also a good idea.
How to send money to Mexico
Whether you send money through your bank, a money transfer provider or any other option, you’ll need to first register for an account with a provider, supplying your name, address, contact details, proof of ID and information about your selected payment method.
Keep a record of any transaction reference number you receive so that you can review the progress of your transfer.
You have multiple options to choose from when sending money to Mexico from the United States. To get the best value for money for your international money transfer, compare the benefits and features of competing services before selecting a provider.