USD INR ₹ 83.31
GBP INR ₹ 106.08
CAD INR ₹ 60.87
News

U.S. Stimulus Checks Increased Remittances To Mexico

Updated on December 08, 2021 11:21 am
USD to MXN corridor

Mexico is the third-highest remittance received in the world, only surpassed by India and China. According to World Bank data, remittances to Mexico grew 11.4% in 2020, totaling USD 40.61 billion. Out of the USD 40.61 billion remittances sent, seven states of Mexico received half of the remittances:

  • Jalisco (10.2% of the national total)
  • Michoacn (9.7%)
  • Guanajuato (8.3%)
  • State of Mexico (6.1%)
  • Mexico City (5.7%)
  • Guerrero (5.0 %) 
  • and Oaxaca (4.6%)

Mexicans in the United States also tend to send more money when there is a crisis or disaster in their home country. Data collected from respective central banks show that COVID-19 caused a sudden decrease in the volume of remittances in the second quarter of 2020 in all Latin American countries, except Mexico.

78-CR-Infographics-MXN-Remittances-b.jpg

 

The main migratory corridor in 2020 was from Mexico to the United States, with 3.9% of the world's migration population. According to the American Community Survey (ACS), in 2020, 11.5 million Mexican migrants were residing in the United States.

The labor force of the Mexican migrant population is indispensable for both the economies of the United States and Mexico. President of Mexico, Andres Manuel Lopez Obrador, has publicly said U.S. residing Mexicans are "heroes" for contributing to their home country's economy. 

Defying all predictions, remittance flows to Mexico have proved to be resilient during the COVID-19 crisis. Three main reasons cited for the record remittance are: 

  • A shift from informal to formal channels 
  • A sharp depreciation of the Mexican peso against the US dollar

 

78-CR-Infographics-MXN-Remittances-a.jpg

 

Stimulus Checks In The United States Increased Remittances To Mexico In 2021

Mexico set a record USD 4.54 billion in remittances in July 2021, coinciding with the stimulus package issued by the United States government. In July, the Internal Revenue Service issued USD 1,400 checks to more than 2 million people in the third round of the direct stimulus package

Stimulus checks are payments the government sends to the taxpayers to help cope with the financial impact during an economic downturn. As momentum is picking up for the fourth round of stimulus aid, let's look at what impacts USD to MXN exchange rates and the cheapest ways of sending money to Mexico from the United States.



In addition to the stimulus check, the record increase in money transfers to Mexico from the United States is due to factors that affect USD vs. MXN exchange rates such as: 

Multiple families in Mexico depend on remittances sent by the families in the U.S. A weaker peso against the dollars means more pesos for the same dollar amount being sent from the U.S. As goods, services, and assets in Mexico become cheaper to purchase with the US dollar. 

"One meal saved in Dubai or New York is worth several in Mumbai or Mexico City." - Dilip Ratha, Head of KNOMAD, World Bank.

When you are sending money to Mexico, get the best exchange rate on each money transfer to get the most out of every dollar you are sending. How to get the best USD/MXN exchange rate? 

Compare the exchange rate offerings by top money transfer companies in real-time on CompareRemit. 

78-CR-Infographics-MXN-Remittances-c%20(1).jpg

 

Why Is Sending Money To Mexico From The United States So Expensive? 

Cross-border remittances reached USD 1.5 trillion in 2020, and another USD 40 billion was spent in transaction fees worldwide. The average cost of sending money from the U.S. to Mexico is around 4%, and it can go up to 8% if you are using traditional ways of sending money, such as banks and small agents. 

Sending money has been expensive because of multiple reasons:

  • The cross-border money transfer is subject to many regulations
  • The market is seen as generally lacking technological innovation
  • It has been dominated by banks, brick-and-mortar service providers, and informal channels.

The cheapest way to send money from the U.S. is online, through an online money transfer service provider. Look for money transfer options that offer high exchange rates and low transfer fees to get the maximum out of your money. 

How to Send Money Online From the United States?

Here is the standard process to send money online:

  1. Choose a money transfer service provider
  2. Sign up or sign in using their website or mobile app
  3. Provide your details
  4. Provider the details of your recipient in Mexico
  5. Select your payment option to fund your transfer 
  6. Click "Send"

The most important part of sending money online is finding the right provider based on the cost, speed, payment, and delivery options. Different money transfer service providers are best at different factors, including how you choose to pay for your remittances and how fast you need the money to reach Mexico.

What Do I Need To Send Money Online To Mexico?

  • Any government-issued IDs such as driver's license or passport. 
  • Recipient's bank account number or CLABE.
  • Recipient's address, city, state, and phone number.

Which Is The Fastest Way To Send Money To Mexico From The United States?

Traditional money transfer providers help you send money to Mexico quickly, usually through cash pickups. Through a cash pickup option, a money transfer can be sent online from the U.S., and your recipient can pick it up in Mexico. 

Cash pick-up is an excellent option for those without a bank account. Keep in mind that the fastest options to send money are not the cheapest. 

Which Is The Best Transfer Service Provider To Send A Large Amount Of Money To Mexico? 

Most money transfers usually have a daily transfer limit. Wise, for instance, has a USD 36000 limit, Xe has a USD 500,000 limit. However, with additional verification, you can increase your sending limit. 

In the case of large remittances, banks still outperform the online money transfer service provider. The main disadvantage is the cost - banks are one of the most expensive ways to send money. Even when banks cite free transfer, look out for "hidden fees" under an alias such as "currency conversion fees."

78-CR-Infographics-MXN-Remittances-d%20(1).jpg

 

We used our comparison tool that looks at cost, exchange rate, and speed to send USD 10000 from the U.S. to Mexico. In the particular example, Xe is a clear winner - giving us the highest exchange rate and USD 0 fees to send a large amount of money from the U.S. to Mexico.

How To Avoid Transfer Fees While Sending Money To Mexico From The United States?

Typically, money transfer companies make money through exchange rate margins and transfer fees. So any company offering free transfer fees will make up for the foregone fees by offering a lower exchange rate. So, our recommendation is to always compare all the money transfer options available before sending money. 

A recent trend for new online money transfer providers is to offer fee-free transfers through coupons and discounts, especially for first-time users. Make sure you check out our promotions page to avoid transfer fees while sending money to Mexico. 

In conclusion, the best money transfer service provider is online, offers high exchange rates, the upfront cost of sending money, and runs promotions that waive transfer fees. Always compare the top money transfer operators that provide the lowest fees and the best U.S. dollar-Mexican peso exchange rates and choose the one that fits your needs.

 5411 views
Rate article:
(5.0)
 
 
Money Transfer FAQ's
Related Articles
Fast Money Transfer
Understanding Money Transfer Speeds

Sending money internationally is a vital task for many immigrants supporting their families back home. When finding the best money transfer service to send money with, you might be tempted to pick your remittance service provider based on whoever has the highest exchange rate. However, it is important that you look at more than one factor. Money transfer fees, the corridors the money transfer service offers, promotional offers, and money transfer speeds are just some of the factors you should look into before you decide on the best money transfer service for you. In this article, we will mainly be covering money transfer speeds. While the process seems straightforward, understanding transfer speeds is essential to ensure timely and efficient transactions. This article will delve into why money transfer services can't instantly transfer money, the factors influencing transfer speeds, and how to compare and choose the right remittance service using CompareRemit.Why Can’t Money Transfers Be Instant?Money transfers involve multiple steps and parties, which can cause the money transfer process to take some time. Here are some reasons why transfers aren’t always instant:Transfer Method: Bank transfers, wire transfers, and online money transfer services all have different processing times. Online services often provide the fastest way to send money.Payment Method: How you fund the transfer (bank account, credit card, debit card) can affect speed. Transfers funded by credit cards might be quicker but could incur higher fees.Transfer Amount: Larger transfers may undergo more rigorous checks, resulting in slower processing times compared to smaller amounts.Service Provider: Different remittance companies offer varying processing times. Some prioritize speed, while others focus on cost-effectiveness. It's essential to research and compare the transfer speeds of different providers.Verification Processes: Financial institutions must verify the sender’s and recipient’s information to prevent fraud and comply with regulations. This verification can take time.Bank Processing Times: Banks typically have set processing times, often limited to business hours and excluding weekends and holidays, which can delay transfers.Regulatory Compliance: Different countries have various regulations to prevent money laundering and illegal activities. Ensuring compliance with these regulations adds time to the transfer process.Intermediary Banks: Transfers that involve multiple banks or financial intermediaries can take longer as each institution has its processing times and procedures.Destination Country: The country to which you are sending money also plays a role. Transfers to countries with advanced financial infrastructure tend to be faster. For instance, sending money to India might be quicker compared to less developed regions.Time of Transfer: The timing of initiating the transfer also plays a role. Transfers initiated during business hours on weekdays tend to process faster than those initiated on weekends or holidays.Anti-Fraud Measures: To protect against fraudulent activities, money transfer companies implement rigorous security measures. While essential, these measures can slow down the processing of transactions.Preparing for Money Transfer SpeedsTo ensure your money reaches its destination as quickly as possible, consider the following tips:Plan Ahead: If you know you need to send money by a specific date, plan the transfer well in advance to avoid any last-minute delays.Verify Recipient Information: Ensure all recipient details are accurate to prevent any issues that might delay the transfer.Choose the Right Service: Use CompareRemit to evaluate different services based on their transfer speeds, fees, and reliability. This tool allows you to see all the factors that will influence your transfer experience.Consider Time Zones: Be mindful of time zones, as transfers initiated during business hours in the recipient’s country may be processed faster.Find the Fastest Way to Send Money Internationally with CompareRemitWhen selecting a remittance service, prioritize your needs and preferences. Getting the most for your money is important, but the highest exchange rate is not always the best answer. Getting a high exchange rate but having your money recipient wait days or even weeks to receive their money is not the best deal. Use CompareRemit's comparison tool to identify the fastest way to send money internationally. Compare the processing times offered by different providers to find the fastest way to send money abroad.

Prevent Money Fraud
Keeping Your Money Safe: How to Protect Yourself from Remittance Fraud

In today's interconnected world, sending money back home to loved ones is easier than ever. However, along with the convenience comes the risk of falling victim to remittance fraud. As immigrants, it's crucial to stay informed about common scams and fraud schemes targeting remittance senders and recipients. In this article, we'll explore the different types of remittance fraud and provide expert tips on how to protect yourself and your hard-earned money.How Money Gets TransferredTo understand where your remittance can go wrong, you need to understand how the ideal remittance process should work. When you use a remittance service, the process typically involves transferring funds from your bank or online account to the recipient's account. This can be done through various methods such as bank transfers, online platforms, or mobile apps. While these methods are generally safe, it's essential to be aware of potential risks and take precautions to safeguard your transactions.Types of Remittance Fraud: Identifying the ThreatImpersonation Scams: Fraudsters pose as remittance agents or family members in need of urgent financial assistance. For example, someone might impersonate a relative and claim to need money urgently for medical expenses.Wire Transfer Scams: Victims are coerced into sending money under false pretenses, such as lottery winnings or fake job offers. For instance, individuals may receive emails claiming they've won a prize but need to pay a fee to claim it.Phishing Emails: Fraudsters send emails posing as legitimate remittance providers, requesting personal or financial information. These emails often contain links to fake websites designed to steal sensitive data.Social Engineering: Fraudsters manipulate individuals into divulging confidential information through persuasive tactics. For example, they may call pretending to be a remittance agent and request login credentials under the guise of resolving an issue with the recipient's account.Tips to Protect Yourself and Your MoneySpotting remittance fraud requires vigilance and awareness of common red flags. Be wary of unsolicited communication requesting personal or financial information, especially via email or phone. Legitimate remittance providers will never ask for sensitive details out of the blue. There are some easy steps you can take to make sure you are staying safe: Verify Recipients: Always confirm the identity of the recipient before sending money, especially if the request seems unusual or urgent.Exercise Caution Online: Be wary of unsolicited communications requesting personal or financial information. Legitimate remittance providers will never ask for sensitive details out of the blue.Choose Secure Payment Methods: Opt for reputable remittance services that employ robust encryption protocols and verification measures to protect transactions.Stay Informed: Educate yourself about common fraud tactics and remain vigilant when conducting financial transactions, especially online.To mitigate the risk of fraud, always opt for secure payment methods offered by reputable remittance services. These platforms employ robust encryption protocols and verification measures to safeguard your transactions. Furthermore, refrain from sharing sensitive information, such as passwords or PINs, with anyone, including purported representatives of remittance companies.Recovering from Remittance Fraud: Taking ActionIn the unfortunate event of falling victim to remittance fraud, do not panic. There is still a way to protect yourself and get your money back. Here are some steps you can take to recover from fraud: Contact Authorities: Report the incident to your remittance service provider and financial institution immediately to initiate an investigation.File Complaints: File a complaint with relevant authorities, such as consumer protection agencies or law enforcement, to increase the likelihood of recovering lost funds.Seek Support: Reach out to support organizations or legal professionals specializing in fraud cases for guidance and assistance throughout the recovery process.Using CompareRemit for Safe Money TransfersWhen it comes to sending money home, using a trusted remittance comparison site like CompareRemit can make all the difference. By comparing and contrasting the top remittance services available, you can ensure that your money is in safe hands. CompareRemit verifies all listed services, giving you peace of mind that your transactions are secure.FAQs: Frequently Asked QuestionsQ: Can I get my money back from remittance fraud?A: If you have been the victim of remittance fraud, don’t worry, there are still ways for you to get your money back. The key is acting in time and being transparent with the authorities. Immediately report the fraud and file a complaint with relevant authorities and seek legal guidance to pursue restitution.Q: How to get money back from wire transfer fraud?A: If you've fallen victim to wire transfer fraud, immediately report the incident to your remittance service provider and financial institution. Additionally, file a complaint with relevant authorities and seek legal guidance to pursue restitution.Q: Is money transfer safe?A: Money transfer can be safe when conducted through reputable and secure remittance services. By exercising caution, verifying recipients, and choosing secure payment methods, individuals can mitigate the risk of fraud and ensure the safety of their transactions.Q: Are money transfer apps safe?A: Money transfer apps can be safe when used responsibly and through trusted platforms. It's essential to research and select reputable apps with robust security measures in place to protect your personal and financial information.Q: Is email money transfer safe?A: Email money transfer can be safe when sent through secure channels and verified recipients. However, it's crucial to exercise caution and avoid sharing sensitive information via email to mitigate the risk of interception or fraud.Q: Is it safe to transfer money online?A: Transferring money online can be safe when using reputable remittance services with robust security measures. By following best practices, such as verifying recipients and choosing secure payment methods, individuals can ensure the safety of their online transactions.Q: Is it safe to use money transfer sites?A: Money transfer sites can be safe when chosen carefully and used responsibly. Prioritize reputable sites with strong security protocols and positive user reviews to minimize the risk of fraud and ensure the security of your transactions.

Sending money to India
When is The Best Time to Send Money to India?

Sending money to loved ones in India is a heartfelt gesture, but navigating the complexities of international money transfers requires strategic timing to maximize your remittance's value. In these uncertain economic times, where currency fluctuations can significantly impact exchange rates, knowing when to initiate your transfer is essential to securing the best possible deal.What is Remittance?Remittance is the process of sending money to individuals or businesses in another country, typically by immigrants to support their families or contribute to their home country's economy. For those seeking to send money to India, CompareRemit serves as a trusted platform to compare and contrast the top remittance services, ensuring you find the most cost-effective and reliable option for your needs.How to Send Money to IndiaWhen using a remittance service, the process of transferring money to an account in India is relatively straightforward. After selecting your preferred remittance provider through CompareRemit, you will be guided to the provider’s website where you can begin the money transfer process. You'll typically need to provide the recipient's details and initiate the transfer either online or through a physical agent. The remittance service then converts your funds into Indian Rupees at the prevailing exchange rate and deposits the money into the recipient's bank account or offers cash pickup options, depending on their preferences.Determining the Best Time to Send Money to IndiaTiming is crucial when it comes to sending money to India, especially considering the fluctuating nature of exchange rates. Here are some tips to help you identify the optimal timing for your remittance:Consult Currency Experts or BrokersEngage with currency specialists who can provide personalized advice on when to send money to India. These experts offer insights into market trends and can help you navigate currency fluctuations to secure the best exchange rate for your transfer.Stay VigilantMonitor market trends and exchange rates yourself to identify favorable opportunities for sending money to India. Sign up for email or text alerts through CompareRemit to stay informed about rate fluctuations and compare remittance services to find the most competitive rates. With CompareRemit, you even have the capability to set preferences so you will be notified when the exchange rate you prefer is being offered. Visit our USD to INR Forecast for 2024 to view the forecasted exchange rates for the whole year to gauge an understanding of when you can expect to find the most optimal exchange rate. Utilize Historical DataAnalyze historical market data to understand past currency fluctuations and predict future trends. By studying historical patterns, you can make informed decisions about when to initiate your money transfer to India. Using CompareRemit’s Compare Page, you can stay informed on the historical trends of exchange rates across the top money transfer services. Explore Promotions and DealsKeep an eye out for promotional offers and deals from remittance services that can help you save money on your transfer. Whether it's discounted transfer fees, referral bonuses, or free transfers for exceeding a certain amount, taking advantage of these promotions can enhance the value of your remittance.Visit the CompareRemit Coupons Page to check for coupons and promotional deals that you may be interested in. Balance Urgency with SavingsWhile urgent financial needs may arise, exercising patience can lead to more favorable exchange rates and cost savings. Take the time to compare exchange rates and transfer fees across different remittance services to ensure you're getting the best deal for your money.ConclusionSending money to India is a meaningful way to support your loved ones, but timing your remittance correctly can significantly impact its value. By leveraging the resources available through CompareRemit and following these tips, you can navigate the complexities of international money transfers with confidence, ensuring your remittance reaches its destination at the best possible time and rate.

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App