How much does it cost to send money to Mexico?

Sending money to Mexico (USD to MXN) is one of the most competitive corridors in the world, meaning costs are relatively low but often hidden within the exchange rate spread rather than the upfront fee.

Based on current market data and the resources provided, here is the breakdown of what it costs to send money to Mexico as of 2024/2025.

### 1. The Cost Structure: Fees vs. Exchange Rate Spreads

The total cost of a transfer is calculated by: **[Fixed Fee] + [Exchange Rate Markup] = Total Cost.**

* **Fixed Fees:** Usually range from **$0 to $4.99**. Many providers waive this fee if you pay via bank transfer (ACH) or send over a certain amount (typically $500+).

* **Exchange Rate Markup:** This is where most companies make their money. If the mid-market rate (the rate you see on Google or XE.com) is **20.00 MXN**, a provider might offer you **19.60 MXN**. This 2% difference is a silent fee.

### 2. Provider Comparison & Specific Pricing

According to data analyzed from *MexEdge* and *Tu Tutorial*, here are the specific costs for leading services:

| Provider | Average Fee | Exchange Rate Markup | Best For |

| :--- | :--- | :--- | :--- |

| **Remitly** | $0 - $3.99 | 0.5% - 2% | Speed and promotional rates for new users. |

| **Wise (TransferWise)** | Variable % | 0% (Mid-market rate) | Transparency; sending large amounts ($1,000+). |

| **Pangea** | $4.95 (flat) | 1% - 1.5% | Simplicity and fixed cost for larger transfers. |

| **Western Union** | $0 - $7.00 | 1% - 3% | Cash pickup at OXXO, Elektra, or Coppel. |

| **Xoom (PayPal)** | $0 - $4.99 | 2% - 3% | High reliability but generally the most expensive. |

### 3. Hidden Costs to Watch For

* **Credit Card Surcharges:** Using a credit card to fund a transfer usually incurs a **3% fee** from the provider plus "Cash Advance" fees and high interest from your bank. Always use ACH (Bank Transfer) or a Debit Card.

* **Receiving Fees in Mexico:** While rare for app-based transfers, wire transfers (SWIFT) can cost the recipient **$15–$30 USD** in intermediary bank fees.

* **The "Promotional Rate" Trap:** Services like Remitly often offer the "Interbank" rate for your first $500. After the first transfer, the rate typically drops significantly.

### 4. How to Send for "$0 Commission" (Tu Tutorial Strategy)

As highlighted by *Tu Tutorial*, you can minimize costs to nearly zero by using **P2P (Peer-to-Peer) or Digital Wallets** like Bitso or DolarApp:

* **DolarApp:** They use "USDc" (stablecoins) to move money. You buy USDc with dollars and sell for Pesos. They often offer a rate very close to the mid-market rate with a flat fee of **$3 USD** regardless of the amount, making it cheaper than traditional apps for transfers over $1,000.

* **Interbank Transfers:** If you have a U.S. account and a Mexican account, using **Wise** allows you to pay the exact mid-market rate with a transparent variable fee (usually around 0.6% of the total).

### 5. Actionable Advice for Maximum Savings

1. **For transfers under $500:** Use **Remitly** or **Western Union** and choose "Economy" (3–5 days). These often have $0 fees for smaller amounts if you aren't in a rush.

2. **For transfers over $1,000:** Use **Wise** or **DolarApp**. The lack of a high exchange rate markup saves more than a "$0 fee" promise would.

3. **For Cash Pickup:** If the recipient doesn't have a bank account, use **Pangea** or **Remitly** for pickup at **OXXO** or **Elektra**. Compare the final payout amount (total Pesos received) rather than the fee.

4. **Avoid Banks:** Sending a traditional Wire Transfer from Chase, Wells Fargo, or Bank of America typically costs **$35–$45** in fees plus a poor exchange rate. This is the most expensive way to send money.

**Current Regulatory Note:** Mexico’s central bank (Banxico) tracks all remittances. Ensure you stay under the **$10,000 USD** reporting threshold per transfer to avoid secondary tax audits (ISR) for the recipient in Mexico, unless you have documentation proving the source of funds.