Last updated on May 24th, 2024 at 05:51 pm
If you send money from the U.S. to loved ones in Mexico or are an expat exploring your options, you need simple ways to transfer money across borders. Often, this means sending money from your U.S. bank account to a bank account in Mexico.
You have three options for transferring a remittance to a bank account in Mexico. There are pros and cons to each method, as well as different costs and money transfer limits. You could:
- Go to a bank and make a wire transfer;
- Transfer money using an international bank; or
- Find an online international money transfer service.
1. International Bank Wire Transfers
A wire transfer is a bank-to-bank money transfer. You can set up your first transfer in person at the bank, online, or with companies like Remitly, Western Union, or MoneyGram to send a specific sum on a specific day. The transfer can be as fast as a few minutes, or you can establish a schedule to automatically withdraw a specified sum from your account and send it to a bank account in Mexico for cash pickup within three business days. If your recipient banks with Banorte, one of Mexico’s largest banks, you can quickly transfer funds to their account using the bank’s SWIFT/BIC code and account number.
It can be an excellent way of sending money anywhere. While this method is reliable, it’s essential to be aware of potential fees, including currency exchange fees, if you need to convert your dollars to pesos.
Important Note: Once you’ve sent the wire transfer, it’s difficult to reverse or edit. Thus, it’s crucial to ensure you have your bank details and recipient’s bank account details correct before making a bank deposit.
How Much Does an International Bank Wire Transfer to Mexico Cost?
The cost of a bank wire transfer to Mexico depends on the bank you are using. As of July 2020, the transfer fees for an international transfer could cost $45 to $50 USD per transfer. Remember that these are fees for bank wire transfers, not other money transfers.
2. International Bank Account Transfer
If you’re investigating options for sending money to Mexico, an international bank for yourself and your family may be another payment option. Across-border banking makes international bank account transfers simple. You can send money directly to a recipient’s bank account in Mexico or choose cash pickup options at convenient pickup locations throughout the country. It can be a wise option for expats and a viable option for transferring money to your loved ones in Mexico, as long as they are signature holders on the account.
If you have a bank account in the U.S. with one of these banks, you must have an account with the same one in Mexico to transfer a bank account.
It’s important to remember to open a bank account in Mexico before you leave. If you already have accounts in both places, this means transferring money from one of your accounts to another account within the same bank.
If you have debit cards or credit cards tied to your international bank account number, you can use them in either country.
How Much Does an International Bank Transfer to Mexico Cost?
The fees vary depending on which bank you use. Some banks don’t charge a fee if you send money in Mexican pesos, while others charge a transaction fee if you send less than a certain amount.
It is always a good idea to check the cost on your chosen financial institution’s website before you send the money.
3. Digital Money Transfer
A digital international money transfer service, like PayPal, Wise, and Xoom (a PayPal account service), offers simplicity and can offer low fees for online money transfers. It’s one of the easiest ways to transfer money from the U.S. to Mexico, saving you money and aggravation.
Online banking, the Remitly mobile app, and mobile wallets can easily transfer international money. Set up your account, and you’re ready to start. After you add your information, including payment methods, the country you’re sending to, and future transfers, simply enter the amount of money you want to send, how you want to send your money, and your recipient’s information, and click done. It’s that easy!
These services differ from traditional banks since they have established relationships with intermediary banks that can make sending money to a recipient’s bank account in Mexico, whether it’s a checking or savings account, far more convenient than sending a bank wire transfer.
How Much Does a Digital Money Transfer to Mexico Cost?
Digital money transfer services are swift and famous for their ease of use and low cost. Fees depend upon the amount sent and the destination country, but they are usually quite affordable compared to brick-and-mortar options.
For example, as of this writing, if you send money to Mexico with Remitly, there is no fee for over $500.
Peso Exchange Rates
Before you send, check the exchange rates offered by the bank or money transfer service for additional information. These rates can differ significantly from those quoted on online currency conversion sites.
To get the most money for your U.S. dollar, balance the highest exchange rate possible with the lowest fees available through the money transfer service.
Additional Reading
- 6 Facts You Might not Know about the Mexican Peso
- How to Safely Send Money to Elektra in Mexico in 5 Easy Steps
- How to Send Money to Someone
- How to Receive Money in Mexico
Article by Deborah White, an expat freelance writer from Utah who lives in Mexico year-round.
