Gabriel, working hard in the fields of the United States, has resigned himself to stay as long as necessary to provide for his family back in Mexico. Each year, he sends about $7,500 home, money earned through the sweat of his brow. These funds are primarily intended to finance his children’s education, covering tuition fees at private universities so that his eldest son can earn a nursing degree.

For Gabriel, money transfers are not just a financial matter; they represent a vital link that connects his family across the thousands of miles that separate them. Every dollar earned is meticulously destined to support his children and to improve their future, from tuition fees to daily needs like medical expenses.

These remittances are crucial for the survival of Gabriel’s family, and he is far from alone in this situation. Indeed, more than 10.9 million Mexicans, which is about 23% of the 45.3 million foreign-born residents living in the United States, face similar challenges.

This article aims to provide you with a comprehensive guide, helping you understand not only the legal and tax aspects of fund transfers but also to select the most suitable method for your needs, whether they concern education or other vital expenses. We will examine the fastest, least expensive, and most efficient options for sending or receiving money in Mexico.

What are the different ways to send and receive money from Mexico?

1. Traditional Banks

Traditional banking services are reliable and secure options for sending and receiving money in Mexico.

Advantages:

  • Security and Trust: Banks are regulated by financial oversight agencies, offering a high level of security and protection for your funds.
  • Additional Services: In addition to money transfers, banks offer a range of financial services, such as investment advice, loans, and credit facilities.
  • Direct International Transfers: You can send money directly from your bank account to an account in Mexico, simplifying the process without the need for intermediaries.

Disadvantages:

  • High Costs: Transfer fees and exchange rates applied can be relatively high compared to other methods. These additional costs can accumulate, particularly for frequent transfers or large amounts.
  • Slower Process: The processing of international transfers can take several business days, which is not ideal for emergency shipments like healthcare needs.
  • Complexity and Documentary Requirements: Sending funds abroad through banks may require comprehensive documentation and administrative formalities, sometimes making the process tedious.
  • Necessity of a Bank Account: This requirement can be a major barrier, especially in Mexico where a significant portion of the population does not have access to traditional banking services. This financial barrier limits access to money transfers for those who may need it most.

2. Online Services and Mobile Apps

Online services such as Wise (formerly TransferWise), WorldRemit, PayPal, Venmo, and Cash App have revolutionized the way we send and receive money around the world.

They offer a convenient and often more economical alternative to traditional money transfer methods, suitable for our digital age.

Later in this article, you will discover our ranking of the fastest and least expensive ways to send or receive money in Mexico.

Advantages:

  • Speed and Ease of Use: These platforms allow for fast, often instant money transfers with a simple online operation or through a mobile app. Their intuitive user interface makes the process accessible to everyone.
  • Cost-Effective: The fees applied by these services are generally lower than those of traditional banks, especially for international transactions. They also offer competitive exchange rates, which can lead to significant savings.

Disadvantages:

  • Necessity for an Account on the Same Platform: To receive money via these services, the recipient often needs to have an account. This can be a barrier for people who are not accustomed to using such services or who lack access to technological means in Mexico. Sometimes, to withdraw funds, you are limited to the banks or services your family or friends can access.
  • Lack of Customization for Specific Needs: These services are not specifically designed for needs such as healthcare access. They do not provide the assurance that every cent transferred will be used for medical purposes or to improve the well-being of loved ones.
  • Lack of Transparency and Tracking: While these platforms offer some transparency regarding fees and the transfer process, they do not provide a detailed mechanism to track how funds are specifically used once received. This is crucial for donors who want to ensure that their financial support is directly allocated to specific needs, such as healthcare for their loved ones.
  • Geographical Limitations: Often, these apps are designed to operate primarily within a single country or a specific region, which poses a problem for immigrants wishing to financially support their loved ones in Mexico.
  • Data Security: Although these apps take measures to protect users’ financial information, concerns about the security of personal data remain.

3. Purchasing Online Health Credits

If you want to support your loved ones in Mexico, especially in the healthcare sector, health credits offer a solution that combines speed, security, and positive impact.

KimboCare was born from the experience of two African immigrants, facing the challenges of supporting the health of their loved ones back in Africa while navigating their own lives in the United States and Europe, a story similar to that of Gabriel mentioned earlier.

This story is not unique, but our response to this challenge is completely so.

We created KimboCare to transform the way we care for our families from afar, whether in Mexico or other developing countries.

Now, you can purchase digital health credits so your loved ones can access preventive and curative healthcare services without needing a bank account or a digital currency platform.

This process is simple, direct, and can be done from anywhere, at any time. These credits will be immediately usable by patients who will be welcomed in medical facilities always verified and controlled by KimboCare.

Rather than simply sending money, often without guarantees that it will be used for necessary healthcare or without being able to ensure the quality of care received, health credits offer a transparent and secure solution.

You get real-time tracking of the medical services purchased with the health credits, ensuring that every cent truly contributes to the health and well-being of the recipient.

The commitment lies in empowering vulnerable populations, particularly women and children, to access quality healthcare, thereby contributing to a longer and healthier life.

The true utility of health credits lies in protecting your data with advanced encryption protocols, giving you additional peace of mind as you contribute to the health of your loved ones.

The Fastest Ways to Send or Receive Money in Mexico

To send or receive money quickly in Mexico, several options are available, each with its own specificities, advantages, and limitations. It is crucial to choose the method that best suits your needs, while considering speed, costs, and specific requirements.

Health Credits

By purchasing health credits, you can ensure that your financial support is used directly for quality healthcare services.

For urgent healthcare needs, prioritize services offering instant or same-day transfers. Some platforms like KimboCare inform the patient directly via SMS or a call.

Not only does this allow for an efficient and fast fund transfer, but it also ensures that your money contributes to a vital cause: the health of your loved ones.

Purchasing health credits frees you from the uncertainties and delays often associated with traditional money transfers.

When you buy health credits for a loved one in Mexico, the beneficiary can access the necessary care without waiting, thanks to a network of reliable and verified medical partners.

Additionally, you benefit from total transparency and real-time traceability of the medical services provided, which is not always the case with other money transfer methods.

Online Services and Mobile Apps

Online services and mobile apps are often the fastest for money transfers.

Platforms like PayPal, Western Union, and TransferWise (now Wise) allow for almost instantaneous transfers.

However, it is important to note that these speeds can vary depending on the amount sent and the necessary security checks.

Some platforms limit the amount you can send over a given period without additional verification, while others may require detailed information about the recipient for compliance reasons.

International Banks

International bank transfers can also be fast, especially if both parties use the same bank or banks with cooperation agreements.

Nevertheless, interbank transfers can be subject to delays due to stricter verification processes and the need to go through clearing systems.

Amount limits and specific requirements vary significantly from one bank to another. This is a particularly important point in Mexico, where most households are limited in their withdrawals.

The least expensive ways to send or receive money from Mexico

Sending or receiving money from a loved one involves adopting a strategic approach to minimize costs while ensuring the security and efficiency of transactions.

Online services and mobile apps often offer more favorable rates than traditional banks, thanks to their streamlined cost structures.

While PayPal is well-known for online payments, Xoom, a PayPal service, is optimized for international transfers, offering reasonable fees and competitive exchange rates.

Indeed, the exchange rate is a crucial factor in the total cost of an international money transfer. Currently, the Mexican peso is at 16 pesos per dollar.

However, this is a value that constantly fluctuates.

Before choosing a service, compare transaction fees, applied exchange rates, and look for reviews to ensure reliability and security.

Opting for platforms that offer a transparent exchange rate and the closest possible to the market rate without hidden fees can significantly reduce the costs of transferring money to Mexico.

Are Transfers with Zero Fees Possible?

Platforms like TransferWise (now Wise) and Remitly are known for their competitive costs and transparency.

Although the offer of money transfers without fees may seem attractive, it can often be misleading.

Companies need to generate revenue to operate, and if they do not impose explicit transfer fees, they may recoup these costs in other ways.

This can include applying less favorable exchange rates, which means your money loses value en route, or introducing ancillary fees once you engage in the transfer process.

It is therefore important to be vigilant about hidden fees, which can appear as additional service charges or indirect costs.

Reading the service conditions carefully can save you from unpleasant surprises.

When the goal of your money transfer is specifically linked to supporting the healthcare needs of your loved ones in Mexico, purchasing health credits presents itself as an innovative solution offering affordable costs.

It guarantees your loved ones receive the necessary healthcare while avoiding unnecessary fees or fluctuations in exchange rates.

You know precisely which care has been provided, when, and at what cost, ensuring that your contribution has the desired impact.

Moreover, no money transfer is necessary, thus minimizing the risks of hidden fees.

Transferring funds to Mexico based on different needs

Sending money to Mexico goes beyond a simple transaction; it is a manifestation of support, love, and investment in the future of your loved ones. 

Whether it’s promoting access to education or ensuring family health, each peso sent carries the potential for change and empowerment, enabling your loved ones to pursue their dreams and build a better future for themselves and their communities. 

Education and work

Investing in education remains a priority for many Mexican families, especially when young people aspire to promising careers in a changing economic landscape.

Sending funds to cover tuition fees, textbooks, equipment, and school supplies is often done through banks or online transfer services, which offer options for direct payment to educational institutions or dedicated bank accounts.

This method of direct payment ensures that the funds reach their destination without intermediaries.

Take the example of Luis, a young Mexican from Mexico City. Like many of his compatriots, Luis has faced a competitive job market and limited opportunities in his region.

Thanks to regular transfers from his sister, Mariana, who has established herself as a financial analyst in Chicago, he can look forward to a more promising future.

Mariana sends about $500 a month to her family in Mexico. This amount, which may seem modest in the United States, is substantial for Luis and his family in Puebla.

With this money, Luis does more than just cover his regular expenses; he has also been able to enroll in software development courses, a field in high demand.

These funds have not only enabled Luis to continue his studies in a growing technical field, but they have also provided a financial cushion that protects him against economic uncertainties.

By investing in Luis’s education, Mariana directly contributes to her brother’s financial independence and the improvement of her family’s living conditions. 

Healthcare

Taking care of the health of loved ones from a distance is a priority, but it can become complex, especially when transparency and certainty that the aid actually reaches its recipient are essential.

This concern is particularly true in Mexico, where access to competent and reliable health professionals can turn into a real challenge, especially in emergencies.

Consider the example of Maria, a nurse living in a small town in Chiapas. Although her region has a sufficient number of health facilities, the quality and consistency of care vary significantly.

Uneven care standards and variability in provider skills can exacerbate health issues, making treatments more complex and costly.

Maria, who suffers from a chronic disease, has often faced major obstacles in obtaining accurate diagnoses and appropriate treatments. Information about her health condition was sometimes incomplete, and doctors were reluctant to openly discuss treatment options, leaving Maria and her family in uncertainty.

Her brother, Carlos, who had emigrated to the United States, often felt helpless about his sister’s health situation. Everything changed when he discovered KimboCare through a work colleague. KimboCare offered him the possibility to pay directly for quality medical care for Maria, with transparency and monitoring he had never experienced before.

Thanks to this platform, Maria was able to receive a comprehensive medical evaluation that clarified her diagnosis. The results were clearly communicated, and a complete treatment plan was established.

Carlos could now ensure that every peso spent contributed directly to improving his sister’s health. Regular medical visits were scheduled to ensure ongoing monitoring, a management that Maria could not have afforded without her brother’s help.

This is where KimboCare makes a difference by allowing expatriates to pay directly for preventive and curative health services for their families in Mexico.

We do not just offer you a platform; we offer you peace of mind, knowing that your financial support translates directly into quality healthcare.

Instead of just sending money, you can purchase health credits that will be used exclusively for medical care with reliable and verified local medical partners.

This method not only ensures that your funds are used as intended, but it also eliminates the stress and uncertainty associated with managing healthcare from a distance.

Moreover, KimboCare intervenes as needed to coordinate communications with medical staff to ensure the best possible experience for your loved ones.

Thus, you can easily identify reliable medical facilities and, most importantly, follow the care and receive feedback directly from your loved ones.

Travel

For migrants in transit through or from Mexico, the journey represents much more than a mere geographical movement; it embodies a voyage filled with hope, challenge, and survival.

These travelers, often in search of better opportunities or fleeing difficult conditions, greatly depend on financial aid sent from abroad to cover crucial expenses such as living costs, transportation fees, and sometimes, in more complex situations, payments to intermediaries or smugglers.

Consider the story of Sofia, a young woman from Guerrero, one of the regions most affected by violence and poverty in Mexico.

Like many of her compatriots, Sofia made the difficult decision to migrate north, aiming to cross the border into the United States in hopes of finding stable employment and better living conditions.

Sofia began her journey with few resources but was able to rely on regular support from her cousin Miguel, who already lives in the United States.

Thanks to these transfers, Sofia was able to pay for transportation to move more safely and efficiently.

She was also able to procure basic necessities for the journey, such as appropriate clothing for changing weather conditions and essential medical supplies.

Nutrition

Ensuring our loved ones have access to adequate and nutritious food is a central concern, particularly in regions where access to quality food products can be hindered by economic constraints.

Sending money to cover food needs not only supports the physical well-being of families but also greatly contributes to their happiness and daily security.

Mexican cuisine, globally recognized for its diversity and rich flavors, reflects the cultural richness of the country. Basic ingredients like corn tortillas, chili peppers, avocados, and beans are used to create dishes that nourish the soul of local communities as much as their bodies.

Take, for example, the taco, a staple of Mexican cuisine. This simple yet delicious dish, which can be topped with various meats, vegetables, and sauces, symbolizes the fusion of indigenous and European cultures that characterize Mexico.

Every Mexican, whether in their home country or abroad, recognizes this iconic dish that evokes memories of family and festivities.

Soups and stews, such as pozole or menudo, also play an essential role in daily nutrition. These dishes, often enriched with corn, meat, and vegetables, provide comfort and remind those far from home of the flavors of their childhood.

For Mexican expatriates, sending money home often goes beyond mere financial aid; it is a way to ensure that their families have access to these traditional ingredients and dishes that are at the heart of Mexican culture.

Each transfer is an act of preserving traditions, supporting local communities, and maintaining a vital connection with their cultural heritage.

Safety Tips for Making Money Transfers to Mexico

In an ideal world, sending and receiving money across borders would be as simple and secure as making a phone call.

However, the reality of international money transfers can sometimes be complex, with risks of fraud and scams targeting the most vulnerable.

  1. Verify and Validate Your Fund Destination

Ensure that the money you send reaches the person you intend to help. This may seem obvious, but in urgent situations, mistakes can occur.

Double-check the recipient’s contact details and information before proceeding with any transfer.

We advise opting for recognized and well-established money transfer services that provide complete transparency about the journey of your funds throughout the process.

  1. Do Not Trust Offers That Seem Too Good to Be True

Scammers often use the promise of extremely favorable exchange rates or zero transaction fees to lure their victims.

If an offer seems too good to be true, it probably is. Similarly, a common scam tactic is to create a sense of urgency, like a fake health problem of a loved one, to push you to send money quickly without verification.

  1. Never Share Your Personal Information

Be vigilant with your personal and financial information. Fraudsters may try to obtain it via phone, email, or social networks.

A legitimate company will never ask you to provide sensitive information through these channels.

It is preferable to turn to a solution where data is protected through advanced encryption protocols and you have access control.

  1. Ensure You Track Your Funds

Having a record of each money transfer can prove invaluable in case of any problems. This information allows you to trace and contest any suspicious transaction.

After sending money, check with your recipient to confirm the receipt of funds. This simple step can help you quickly detect any potential fraud.

The best help you can get for sending or receiving money from Mexico is from an agency that ensures every penny is invested in specific needs (such as health expenses), with zero risk of misappropriation by unreliable intermediaries.

An overview of money transfer laws in Mexico

Mexico has established a robust regulatory framework to govern money transfers, aiming to facilitate these operations while combating money laundering and terrorism financing.

According to the Bank of Mexico, money transfers to the country have reached record amounts recently, highlighting the importance of these financial flows for the national economy.

During the COVID crisis, figures from the Mexican Central Bank showed that remittances reached a record level of 40 billion dollars (10.9% more than the previous year).

Since then, remittances from expatriate workers in this country have continued to increase and were even estimated at 63 billion dollars in 2023.

These remittances support entire villages daily, feeding populations, facilitating access to education, and healthcare.

Today, they represent about 4.2% of Mexico’s GDP.

To manage this, Mexican law requires payment service providers to register with the National Banking and Securities Commission (CNBV), thus ensuring regulatory oversight.

The laws also require the implementation of Know Your Customer (KYC) measures by these providers, which involves collecting identification information about senders and recipients.

Transactions above a certain threshold must be reported to Mexico’s Financial Intelligence Unit, a measure aimed at preventing illegal activities.

Since 2021, the threshold for these reports was set at 10,000 USD or its equivalent in local currency.

Taxation applicable for sending or receiving money from Mexico

From a tax perspective, money transfers in Mexico are generally tax-exempt when conducted between individuals for family or personal support reasons.

For example, tax exemptions may apply to money sent to cover specific health care expenses.

However, it is important to note that specific conditions may apply, and rules can change depending on the amount transferred and the frequency of transactions.

Money transfers made in a professional or commercial context may be subject to different taxation, potentially including income tax or VAT.

These laws and tax regulations are designed to secure and facilitate money transfers but require careful attention to avoid potential hidden fees.

At KimboCare, we emphasize the importance of being well-informed about these aspects, as it not only helps ensure hassle-free money transfers but also supports our mission to ensure fair and affordable access to services, such as healthcare, for those in need in Mexico.”

FAQ

How do I send health credits to relatives in Mexico ?

You can start managing access to reliable healthcare for your loved ones back home in a few easy steps. 

  1. Visit app.kimbocare.com or download KimboCare’s free app from the App Store or Play Store.
  2. Select the country, medical facility, and health bundle(s).
  3. Add a beneficiary.
  4. Review your order and make your payment.

That’s it! Your relative can now visit your selected medical facility and receive care services while you monitor the usage and effectiveness of your gift from your tablet or smartphone.

How can I send money to Mexico in the safest way possible?

To ensure the safety of your money transfer to Mexico, choose recognized services with robust security protocols. Always check user reviews and ensure that the service is regulated by competent financial authorities.

If you wish to send money to cover healthcare expenses, our platform ensures that each financial partner meets high security standards, guaranteeing that your funds reach your loved ones safely.

Are money transfers to Mexico taxed?

Generally, personal money transfers to Mexico are not taxed (especially those concerning healthcare expenses).

However, it is important to note that specific conditions may apply, and rules can change depending on the amount transferred and the frequency of transactions.

How long does a money transfer to Mexico take?

The transfer time can vary depending on the service used. Electronic transfers can be instantaneous or take a few hours, while traditional methods like bank transfers can take several business days.

For urgent healthcare needs, prioritize services offering instant or same-day transfers. Some platforms like KimboCare directly inform the patient via SMS or a call.

What are the typical fees associated with sending money to Mexico?

Fees vary widely depending on the chosen service, the amount sent, and the payment method. Some services charge a percentage of the transferred amount, while others apply fixed fees. Look for options offering total transparency on fees to avoid surprises.

Are there any limits on the amount of money you can send to Mexico?

Yes, most money transfer services impose limits, which can vary depending on the chosen transfer method and the service’s regulations. It’s essential to check these limits before making a transfer, especially if you plan to send large sums for needs like covering medical expenses.

How can I ensure I get the best exchange rate when sending money to Mexico?

Compare exchange rates offered by different services before making your transfer. Some services allow you to lock in a favorable exchange rate in advance or offer more competitive exchange rates for larger amounts. Be wary of hidden fees that can affect the final amount received!

How can my loved ones in Mexico receive the money?

Recipients in Mexico can receive the money via direct deposits into their bank accounts, cash withdrawals at local service points, or even, for some services, home delivery. Make sure to choose a reception method that best suits your recipient in terms of convenience and safety.

Regarding health credits, each purchased credit can then be offered to your loved ones for access to quality care in accredited medical facilities.