How can you send money to Mexico from the US?

To send money from the US to Mexico, you must balance three variables: the exchange rate, the fixed transfer fee, and the speed of delivery. Because Mexico is one of the highest-volume remittance corridors in the world, you have access to highly competitive rates that often beat the "interbank" rate offered by traditional banks.

### 1. The Best Transfer Methods (Evaluated for 2024–2025)

Based on recent performance data and real-world testing from resources like *MexEdge* and *Almost Retired in Mexico*, here are the top-tier services:

#### **A. Wise (Best for Transparency & Large Amounts)**

Wise uses the "mid-market" exchange rate—the one you see on Google. They charge a transparent fee instead of hiding a markup in the currency conversion.

* **Fees:** Typically 0.5% to 1% of the transfer amount.

* **Speed:** Often arrives within seconds to hours if using a debit card; 1–3 days via ACH bank transfer.

* **Key Benefit:** According to *Almost Retired in Mexico*, Wise is the most reliable for consistent low fees when transferring to Mexican bank accounts (CLABE).

#### **B. Remitly (Best for Speed & Cash Pickup)**

Remitly offers two tiers: "Economy" (lower fees, slower) and "Express" (instant, higher fees).

* **Exchange Rate:** They often offer a promotional rate for first-time users that is better than the market rate.

* **Reach:** Massive network for cash pickup at OXXO, Elektra, and BanCoppel.

* **Actionable Advice:** Use Remitly if your recipient does not have a bank account and needs to pick up physical pesos.

#### **C. Pangea or XE (Best for Fixed Rates)**

Pangea is frequently cited by *MexEdge* for its flat-fee structure—usually around $4.95 regardless of the amount—making it excellent for transfers over $1,000 where percentage-based fees would be too high.

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### 2. Step-by-Step Instructions to Send Money

Follow these steps to ensure the lowest loss during the transaction:

1. **Obtain the Recipient's CLABE:** In Mexico, you need the **CLABE** (Clave Bancaria Estandarizada), which is an 18-digit standardized number for bank accounts. A standard debit card number is not enough for a wire transfer.

2. **Compare the "Net Amount":** Do not look at the fee alone. Look at the final amount of Pesos (MXN) the recipient will receive.

* *Calculation:* (Total USD - Fee) x Exchange Rate = Total MXN.

3. **Choose your Funding Source:**

* **Bank Account (ACH):** Lowest fee, takes 1–3 business days.

* **Debit Card:** Higher fee, usually instant.

* **Credit Card:** Avoid this. It is treated as a "Cash Advance" by US banks, incurring immediate high interest (often 25%+) and extra fees.

4. **Initiate the Transfer:** Enter the recipient's full legal name exactly as it appears on their Mexican ID (IFE/INE) to avoid bank rejections.

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### 3. Understanding the "Hidden" Costs

As highlighted in *The BEST Money Transfer Apps 2025*, the "Hidden Fee" is almost always the **Exchange Rate Spread**.

* **How it works:** If the market rate is 1 USD = 18.00 MXN, a service like Western Union might offer you 17.50 MXN.

* **The Math:** On a $1,000 transfer, that difference of 0.50 pesos per dollar costs you **500 MXN (approx. $28 USD)** in hidden fees, even if the service claims to have "Zero Fees."

* **Verdict:** Always compare the service's rate against the rate on [XE.com](https://www.xe.com) or Google before hitting "Send."

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### 4. Regulatory Limits and Requirements

The US and Mexican governments monitor these transfers for anti-money laundering (AML) purposes:

* **The $10,000 Threshold:** Under the Bank Secrecy Act, transfers over $10,000 must be reported by the transfer provider to the IRS/FinCEN. If you send $10,000+, expect to provide documentation regarding the source of funds.

* **Mexico Taxes:** Most family remittances (transfers to parents, children, or spouses) are tax-exempt in Mexico under Article 93 of the Income Tax Law (LISR). However, the recipient should keep records in case the SAT (Mexico’s IRS) inquires about the deposits.

* **Identification:** For cash pickups over $1,000 USD equivalent in Mexico, recipients are almost always required to provide their CURP (Clave Única de Registro de Población) and valid official ID.

### 5. Summary Recommendation

* **For the lowest cost on $500+:** Use **Wise** or **XE**.

* **For sending money to someone without a bank account:** Use **Remitly** or **Intermex** for pickup at an OXXO.

* **For the best first-time user deal:** Check **Remitly** or **Western Union**, as they often provide "New Customer" rates that beat the actual market rate for the first $500.