If you live in the United States and want to send money to family or friends who are in your home country, you can send money to them through a credit union, bank, or through a remittance transfer provider.
¿What is a remittance transfer provider?
Possibly in the corner of your house or near where you live there is a remittance transfer provider. These companies are responsible for electronically transferring money from consumers to individuals and companies abroad. These companies generally have a sign stating that remittances are sent or money transfers are made abroad.
When we talk about “electronic transfer” (or “electronic money order”) we refer to any transfer of money between one person and another. However, in the United States this type of transaction is known as “remittance shipments.”
¿How is the transaction carried out?
You can go to a bank, cooperative or remittance provider and indicate that you want to make a money transfer or send a remittance to your country. The financial institution will ask you for: the amount you want to send, your personal data, photo identification, address and personal data of the person to whom you will send the money.
After making the transfer, the financial institution will give you a receipt with the following information:
- When the money will be available at your destination.
- Your right to cancel the transfer.
- What to do in case there is an error.
- How to file complaints.
Under federal law, remittance companies must provide this information in at least English. You should also know that you have the right to receive all of this information before making the transfer, and the receipt numbers must match the amounts the remittance provider gave you earlier.
Information you should know before making the money transfer:
- Exchange rate.
- The charges and taxes they charge you.
- Charges in the transfer process abroad.
- The amount of money to be delivered, not including taxes or fees.
Remember that the exchange rate is how much money you need to pay to acquire the other currency. For example, the current exchange rate between the United States and Mexico is approximately 19.50. In other words, with a US dollar you will receive 19 Mexican pesos with 50 cents.
On the other hand, agencies sometimes make estimates of charges and taxes, as federal law allows. However, if the figures are estimates they must be identified as such on the receipt.
¿What if there is an error?
If you understand that there is an error in the receipt or in the transfer made, inform the company quickly. Since money transfer providers are obliged to correct the following errors:
- Payment of the wrong amount.
- When funds are not delivered on time
- When funds are not delivered to the correct person
- When the funds are not delivered complete.
To correct these errors the company can offer a refund or resend the money to the recipient again, free of cost. Remember that you will have 180 days from the date the money is supposed to be available to file a complaint.
A advice that provides the Office for Consumer Financial Protection, It is that before making a shipment with a remittance provider, ask if the company follows federal law regarding remittance transfers. Since not all companies are required to do so, only those making more than 100 transfers a year are required.
You also have the right to cancel the transaction.
After you pay for the transaction, you have 30 minutes to cancel it at no cost; unless the money has already been collected or deposited into the recipient’s account.
In the United States there are different companies that you can use to send money to Mexico, the Dominican Republic, Cuba, etc. You can consider the following companies to send money safely.
You can make money transfers with MoneyGram. Many small businesses and exchange houses offer money transfers with MoneyGram, but if you do not want to make a transfer through their offices, you can make them through their online platform reliably and quickly. MoneyGram has more than 19,000 branches in Mexico to withdraw money.
With the personal account of PayPal you can transfer money to the other person’s account, for free. When you want to send money, you must enter in your Paypal account the mobile phone number or email address of the person you want to send it to and specify the amount on the form. You can transfer money through the Internet or the application. The funds will be deposited to that person’s PayPal account quickly. Opening a PayPal account is free. However, receiving money from friends and family is free if it does not involve a currency conversion. Paypal is available for Android Y iPh