Save on your money transfers from Mexico!
As of today, there are more than 1 million Americans living in Mexico. One might have several reasons to send money back to the US: loan repayment, family support, etc. However, it can be difficult to find a cheap solution to do so. Let’s see what are your options:
Send money with your Mexican bank
Banamex, Cibanco, IXE etc. try to lure you with zero fee international transfers. Be careful! There is no such things like free money transfers.
If banks had decided to be kind to their clients we would know it, wouldn’t we ?
You might not pay any fee, per say. But, it is only because they’re hidden in the poor exchange rate used for your transfer.
According to the World Bank, the most expensive money transfers are those made by banks. They cost more than 10% of the total amount sent. Still according to the World Bank, 2/3 of the fees are hidden in the bank exchange rate.
Money Transfer Operators
TransferWise, Xoom and WorldRemit are perfect to send money from the US to Mexico. They are way cheaper than banks and the rates they apply are good. You’ve probably already used one of them to send money to Mexico by the way.
What about Western Union or Moneygram? Very famous, these providers are also quite expensive, just like banks. Western Union charges you between 5 to 10% fees and you can only send 7,499$ per day.
Here is a quote made on Moneygram website (March 13th) to send 25,000 pesos in the US.
- The exchange rate used is 0,0499, while in reality it is 0,05106. You’re already losing $29 only on the exchange rate.
- You’ll have to add, 1 250 pesos fees</strong>; which corresponds to 5% of the amount you’re sending, or around 63$.
In the end, sending 25,000 pesos to the US using Moneygram will cost you a minimum of 92$! Moneygram may add fees when you show up at one of their shop to make a transfer.
