How to send money to a Mexico bank account from the USA?

To send money from the USA to a Mexican bank account, you must navigate three primary factors: the **Exchange Rate Margin**, the **Fixed Transfer Fee**, and the **Delivery Speed**.

Here is the step-by-step guide to executing this transfer with the best value and security.

### 1. Comparative Analysis of Top Services

As of late 2023/early 2024 data from the *World Bank’s Remittance Prices Worldwide* database and real-time market aggregators like *Monito*, here are the top-performing providers for Mexico:

* **Remitly:** Often the best for first-time users due to heavily subsidized "new customer" exchange rates. They offer "Express" (debit card) and "Economy" (bank account) tiers.

* **Wise (formerly TransferWise):** Best for transparency. They use the mid-market exchange rate (the one you see on Google) and charge a single, upfront fee.

* **Pangea:** Highly rated specifically for US-to-Mexico transfers, offering fixed fees (usually around $4.95) and highly competitive rates for larger amounts.

* **Xoom (a PayPal service):** Fast and reliable, but typically the most expensive due to higher exchange rate markups. Use only if speed is more important than cost.

### 2. Identifying the Required Information

To send to a Mexican bank account, you do not use an IBAN (common in Europe). You need the **CLABE (Clave Bancaria Estandarizada)**.

* **CLABE Number:** This is an 18-digit number unique to every Mexican bank account. It is not the 16-digit debit card number.

* **Recipient's Full Name:** Must match the name on the bank's government-issued ID exactly.

* **Bank Name:** (e.g., BBVA Bancomer, Banorte, Santander, Banco Azteca).

* **Recipient's Phone/Email:** Required for delivery notifications.

### 3. Step-by-Step Execution

1. **Compare the "Total Cost":** Do not look at the fee alone. Calculate `(Amount Sent) / (Amount Received)`. The provider that gives the highest amount of Pesos (MXN) for your Dollars (USD) is the winner.

2. **Choose your Funding Source:**

* **Bank Transfer (ACH):** Cheapest, but takes 1–3 business days.

* **Debit Card:** Fast (often minutes), middle-tier cost.

* **Credit Card:** Most expensive; avoid this as it counts as a "Cash Advance" with high interest.

3. **Enter Recipient Details:** Input the 18-digit CLABE and the recipient's legal name.

4. **Confirm the Quote:** Most providers lock in the exchange rate for a period of 30 minutes to 2 hours.

5. **Track the Transfer:** You will receive a reference number. Share this with your recipient so they can verify the deposit with their bank.

### 4. Regulatory Limits and Tax Implications

You must navigate both US and Mexican regulations to ensure the money isn't flagged or taxed incorrectly.

* **The $10,000 Rule (USA):** Under the *Bank Secrecy Act*, every transfer over $10,000 is automatically reported to the IRS via Form 8300. If you send frequent amounts just under $10,000, it can be flagged as "structuring," which is illegal.

* **Mexican Tax Law (SAT):** Remittances from direct family members (parents, children, spouses) are generally tax-exempt in Mexico under *Article 93 of the Income Tax Law (LISR)*. However, the recipient should keep records in case the SAT (Servicio de Administración Tributaria) audits the deposits.

* **Individual Provider Limits:** Services like Remitly or Wise have "tiers." You may need to upload a photo of your SSN or ID to send more than $2,999 in a single 24-hour period.

### 5. Common Edge Cases & Troubleshooting

* **Incorrect CLABE:** If you enter the wrong 18-digit number, the transfer will usually fail and bounce back to your account within 3–5 days. However, if the CLABE exists but belongs to the wrong person, recovery is extremely difficult. **Double-check the CLABE twice.**

* **Transfer Delay:** If the money hasn't arrived in 48 hours, check if the recipient's bank in Mexico has a "limit on incoming deposits." Some basic "Cuenta de Ahorro" (savings accounts) in Mexico have monthly deposit caps (e.g., Level 2 accounts are capped at approx. 20,000 MXN per month).

* **CASH Pickup Option:** If the recipient needs the money instantly and doesn't have a high-limit bank account, use the "Cash Pickup" option at locations like *OXXO*, *Elektra*, or *Bodega Aurrera*. This is often faster than a bank deposit.

### Actionable Recommendation:

If you are sending **under $500**, use **Remitly** for the promotional rate.

If you are sending **over $1,000**, use **Wise** or **Pangea** to benefit from the lower percentage-based margin on the exchange rate.