How to transfer money to Mexico from abroad at lower cost — Mexico News Daily
When transferring money from abroad to Mexico, the method should be chosen depending on the amount, urgency and form in which the funds are received, Mexico News Daily writes. The publication reviewed options for foreigners who have moved to the country and hold savings in accounts outside it.
ATMs for small amounts
If there is no Mexican bank account, small amounts can be withdrawn through ATMs. Such transactions usually incur an ATM-use fee of between 30 and 200 pesos, and a less favorable currency conversion rate may also be applied.
The publication advises declining the conversion rate offered by the Mexican bank when withdrawing cash. The transaction should then be processed at the rate of the bank that issued the card. According to the publication, the exchange-rate markup for conversions at Mexican ATMs can reach 6%.
It is also recommended to avoid standalone ATMs in shops, gas stations and other public places that do not belong to major banks. They may charge high fees and be more vulnerable to interference by criminals.
Transfers and large payments
The daily cash withdrawal limit at Mexican ATMs is about 11,000 pesos, or US$645. For transfers ranging from US$1,000 to US$50,000, the publication calls electronic transfers through services such as Wise, Remitly or Revolut a more economical option.
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Fees, crediting times and markups over the mid-market exchange rate differ among such services. In particular, a US$1,000 transfer through Wise may arrive within seconds, while through Remitly it may take three to four days. The markup over the mid-market rate may range from 0.8% to 3%.
Some services allow transfers to be received in cash at Mexican retail chains, including Oxxo or Walmart, or credited to a mobile wallet. For substantial sums, such as US$500,000 for a real estate purchase, OFX and Wise platforms or an international bank transfer through the SWIFT system may be used.
What to avoid
Exchanging brought-in cash at airports is one of the most expensive methods: the markup over the current rate there may range from 10% to 20%. At currency exchange offices in Guadalajara, it can reach 5%.
The publication also warns against choosing a service without comparing fees: at PayPal and its subsidiary service Xoom, fees may amount to 3% or more of the transaction sum. For large payments with an uncertain timing, the authors advise considering the risk of changes in the peso exchange rate. According to the publication, MexEdge offers a forward contract with a fee of about 1%, allowing the exchange rate to be locked in for up to two years.
