Do you receive dollars? pay less for them

Do you have a family member who sends remittances or do you know someone who receives money from abroad? Mexico has broken record figures in terms of sending remittances. From January to November 2022, an increase of 13% was reflected compared to 2021 after the remittance of 53.125 million dollars from Mexican workers residing abroad.

According to the Federal Consumer Attorney’s Office (Profeco), the main companies through which money is sent are Western Union and Xoom in terms of shipments by digital means, however, are you sure to opt for the service that is best for you? Today there are different means, so if you have a family member or receive remittances, it is best to know what should be considered when choosing the means.

The best thing is always to maintain constant communication with our relatives who send money, since factors such as the schedule, proximity or means of sending that are best suited must be considered.

To get the most out of sending money, the first thing you should assess is speed, there are cheaper options, but they are not immediate delivery so it can take time to receive the money.

Rocío Mejía Flores, General Director of Financiera para el Bienestar, explained that another option to consider is proximity, many times you can opt for the cheapest option, however, both for those who send or receive, the cost of transportation can end with any amount saved.

Other factors to consider when choosing a money transfer service are the exchange rate, the transfer fee, the time it takes to send money to an account deposit or in cash, as well as the amount limit.

For example, according to data from the Profeco service comparator, “Who is who in sending money”, as of the last week of December 2022, the company InterCambioexpress paid 6,874 pesos with an exchange rate for sending 350 US dollars. of 19.64 pesos and with a commission charge of 10 dollars, on the other hand, some remittance companies like Ulink do not charge a commission, however, for the same amount of dollars you pay only 6,741 pesos, that is, 133 pesos less.

Meanwhile, if a transfer is made to an account deposit, in some cases it has lower commissions, for example, in the case of Moneygram, the commission charge for sending cash is $3.99, while when making a transfer to the deposit of account the charge is $1.99. However, it is important to also review the exchange rate or the amount to be received, since in some cases it does not change significantly.

Some other points to take into account when making a joint decision between the parties, the one who sends and the one who receives, is to know about the guarantees offered by the company for sending money, the return and cancellation policies, the number of transactions allowed per month, or if remittance payers have anti-theft insurance.

The arrival of new players

The rapid evolution of technology and Internet access are factors that have currently triggered the entry of new players into the financial system. Many fintech companies have alliances with institutions such as banks or self-service stores, which allows them to offer broad coverage for sending remittances, not only from the United States, Europe or Africa; As it is a service with the application of technology, doubts arise about its effectiveness and safety.

In this regard, Profeco recommended that users verify that the company through which they wish to send money is duly registered with the National Banking and Securities Commission (CNBV), or verify that it is registered with the Service Providers Registration System. (SIPRES) of the National Commission for the Protection and Defense of Users of Financial Services (Condusef) in addition to inquiring about the requirements requested by the applications as well as having customer support hours on hand, in case of doubts .

joselyn.ugarte@eleconomista.mx