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Sending money to Mexico should be a process that is cheap, fast, and easy. However, even small mistakes can cost you money and time. Today, a wide range of Mexicans move to the United States to work. It is common for them to use online money transfer services to send income between their U.S. and loved one’s Mexican bank accounts. In some cases, these transfers do not work out as planned. Why do these issues occur?
Mistake #1: Focused Only on Upfront Fees
When you transfer money to an overseas bank account, you need to take note of the provider’s service fee and the cost of converting dollars into the local currency, i.e. the country you are sending money to. The cost that you end up paying depends on the foreign exchange rate (e.g. Mexican peso exchange rate) between the two currencies, e.g. Mexican pesos and U.S. dollars. These charges differ from provider to provider. When you use Sharemoney, you never have to worry about these things. We offer winning rates of about 19.8296.
Mistake #2: Forgotten to Convert Dollars to Foreign Currency
When sending remittances online to Mexico, most senders expect the right currency to arrive at their recipient’s bank account. You should keep in mind that the time when the currency conversion happens is important. If you do not covert on your end, you may face rejection or paying a higher fee. This happens when the foreign bank converts the funds at a higher exchange rate. If you do not want to experience financial strain, avoid making this mistake!
Mistake #3: Misunderstood Delivery Details
Not all online remittances are facilitated at the same speed. Delivery options and payment methods are factors that affect the overall speed of a transfer. For example, bank-to-bank transfers tend to come with long processing times. Funding a transfer with your debit card generally speeds up delivery. So, understand the terms of your providers, the delivery speed, and cost. This way, you can find a method that best suits you.
Mistake #4: Used Inaccurate Account Details
Bank accounts and routing numbers have formats that vary by country. While these details allow senders and recipients to identify bank accounts on either end of a transfer, they may not always be straightforward. E.g. American banks utilize account numbers of various lengths (it depends on the state and transaction type) and nine-digit routing numbers.
For Mexican bank accounts, they follow a banking standard called Clave Bancaria Estandarizada (CLABE). It contains 18 digits that indicate the bank code, branch office code, account number, and control digit.
Mistake #5: Thought that All Remittance Providers are the Same
It is a good idea to shop around before transferring money. This way, you do not end up overspending. At Sharemoney, we have already done the homework for you. Based on our findings, we have adjusted our exchange rates and fees. They are low and very competitive. If you send a lot of money, and frequently, you will be able to enjoy better exchange rates.
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