Did you know that remittances account for one of Mexico’s top sources of foreign income? Sending money home to Mexico is a very common need in the United States and is quite popular. In fact, the Mexican economy over the years has been largely dependent on remittances coming from immigrants especially the U.S. An estimated $24 billion is sent annually directly from the U.S alone to Mexico with a record high of $28.7 billion in 2017.
But with the current administration’s resolve to build an “impenetrable, physical, tall, powerful, beautiful, southern border wall” between the US and Mexico, questions are been asked as to whether the Donald Trump U.S led government could try to use laws aimed at preventing money-laundering to stop Mexicans who work in the USA from remitting money to families back home.
Have you ever wondered on how best to send money to Mexico, the good news is that there are myriads of routes to send money, and many are free or very cheap. A lot of banks transfer money to Mexico for free provided you have a qualifying account with them; it is therefore advised to look out for special programs that boast such abilities. Almost every money transfer service sends funds to Mexico, so compare fees and transfer times before you choose. Many banks employ the government program Directo a México to help immigrants send money home as fast and inexpensively as possible. All fees are paid by the sender, not the recipient, and the money can be received as early as the next day. Some banks have their own specialty programs, such as Bank of America, which allows account holders to send money to Mexico for free through Safesend. With Wells Fargo’s ExpressSend service, you can send up to $2500, or about 32,500 pesos, for a fee of $5 to $7. The money will be transferred to BBVA Bancomer, Banorte, or HSBC Mexico.
If there is need for you to send money regularly home and do not want to open an account at a specific bank in order to send money cheaply, consider the use of a prepaid debit card. It costs just $5 to add funds whenever you need to either by phone or via Internet, and your relatives will have access to the money immediately. This is probably the cheapest means of transferring money to Mexico regularly because it allows you send as much as you need to at once for the same low price. Thereafter, your recipients can then withdraw the money or use the card at retailers that accept debit cards.
Equally, you can send money through the use of money transfer applications. In 2016, about 98% of money wired to Mexico was done via electronic transfers. Peer -to- Peer apps and services, such as Venmo, Snapcash, and Tuyyo are defying odds and providing a more convenient way of sending money because they provide cheaper, faster and even a seamless way of sending money. Using the money transfer apps mentioned previously, money can be sent in a twinkle of an eye from the U.S. to Mexico by the use of a credit or debit card that attracts almost a similar rate of about $5 for each transfer.
Furthermore, these apps offer a favorable exchange rate. The recent depreciation of the Mexican peso against the dollar is currently encouraging more Mexicans in the U.S. to wire greater amounts of money because it is believed that an appreciating dollar equals more money in the pocket of the receiver.
Another way to send money to Mexico is to use a money transfer company. All you have to do is simply locate a service provider and pay a fee in the region of $5 to $20, and either transfer to a bank account or provide the name and location where your recipient will pick up the money in Mexico. The fee is usually a percentage of the money you are sending, though some companies charge a flat fee. Your recipient would then need to supply either a password, identification, or both to show that the money is for them, and would not have to pay a fee. Most money transfer companies provide the options of sending money from your bank account, credit card, or from cash, and allow the recipient to choose between getting the money in their account in the form of pesos, or picking it up at a location near them. Among the most popular money transfer companies are MoneyGram, WesternUnion, Xoom, and a host of others to choose from.
If you plan to send money to Mexico often, a prepaid debit card should do the trick. Simply select a prepaid debit card company, have a card sent to your family, and then add money either online or by phone. Once your relatives in Mexico receive the card, money transfers will be instant. You will usually be charged $5 to $8 no matter how much you send. Each time your family members use the card, they will be charged a small fee, usually a percentage of what they buy. If they want to get money from an ATM using the card, they can expect to pay less than a couple dollars, or about 25 pesos. Checking the balance on the card is free.
It should be noted that remittances are generally received in some of the poorest communities in Mexico because they play a strong role in alleviating poverty.