BajaNomad

Money Transfer Options

nbentley1 - 8-24-2021 at 11:31 AM

we are looking to begin construction on our property in the next couple of months. We have the land purchased and the fideicomiso is in place. As the initial construction costs will involve more cash than I want to carry, we are looking for options to transfer money into Mex. The obvious one is through a Mex bank account but it is my understanding that I need a utility bill to do this and we do not have anything hooked up at this point (bit of a chicken and egg situation). Are there other documents that would suffice such as the land trust or fideicomiso receipt? Any input is appreciated. Thanks

Bob and Susan - 8-24-2021 at 11:43 AM

dont forget enviromental impact permit

put electricty to the property...there ...a CFE bill
first thing regular builders do a post with electricty

put water to the property...there a water bill

bank is easy
there are transfer costs


JDCanuck - 8-24-2021 at 11:44 AM

We have been sending construction funds through XETransfer. They will complete the transfer from an EFT out of your account in your currency to Mexican Pesos in the target account. Minimal buy/sell currency exchange spreads and no fees.

The other option is a direct wire from your bank, but you are probably aware of the very high currency exchange spreads.

Howard - 8-24-2021 at 11:46 AM

I Western Union money to my gardener when I am not there. Very easy to do on the computer and he goes into any number of places to pick it up. The charge was rather nominal.

I wonder if you could send it to yourself? The name as to who you send it to must match 100% to the ID they present for pick up.

Google Western Union and see the rules. I do not know if there is a maximum.

nbentley1 - 8-24-2021 at 11:49 AM

All great suggestions. Thank you.

Bob and Susan - 8-24-2021 at 11:53 AM

converting money there can be a limit of $2000usa per month

paying a gardener "money" is not building a house "money"

msteve1014 - 8-24-2021 at 12:02 PM

When I built my house I wired money from Wells Fargo to my builders Mexican account. I remember it as being easy, and the fees were not bad. For 10 years I have sent money to myself, and others with Wells Fargo for smaller limits each day.

Recently I have been using remitly to send money to others, the rates are good, and it is easy to set up different people to send to. Before I return I will try to send to myself.

JDCanuck - 8-24-2021 at 12:04 PM

I had heard it was difficult to open a bank account in Baja for non-residents. Is this not the case?

PaulW - 8-24-2021 at 12:20 PM

To get started carry the $ then find the better way.
As soon as you have a deal with the contractor get your electric installed to a pedestal nearby and have the receipt for that task in hand.
Make a deal with the contractor for payment of that task out of pocket. Then get a bank account and proceed with money transfer.
What we did was carry money for the many trips required to bring stuff from the US. Keep the carry money to around 2k$. Our contractor was ok with small payments before we had a bank account.

SFandH - 8-24-2021 at 12:24 PM

Quote: Originally posted by JDCanuck  
I had heard it was difficult to open a bank account in Baja for non-residents. Is this not the case?


I know some banks require a CURP number (Clave Única de Registro de Población) to open an account plus proof of address (utility bill). A CURP is a person's unique number that functions similarly to U.S. social security number.

I received one when I obtained a resident visa. It is printed on the resident visa card.

JDCanuck - 8-24-2021 at 12:30 PM

That's as i had heard it. You had to have the resident visa to get approval to open an account.

SFandH - 8-24-2021 at 12:32 PM

Quote: Originally posted by JDCanuck  
That's as i had heard it. You had to have the resident visa to get approval to open an account.


Yes, it's the CURP number they want, which comes with a resident visa.

SFandH - 8-24-2021 at 12:40 PM

Also, I've wired money from two different American banks to both Mexican and Canadian banks. I have a friend that likes this service. I may try it.

https://wise.com/


JDCanuck - 8-24-2021 at 01:26 PM

If you are doing significant amounts of USD to CAD or reversals, you could trade directly on the Forex through an online broker. I am presently showing bid at 1.25965 and ask at 1.25970 which is pretty tight and the cost to trade is 2.86 in CAD for amounts up to 100,000. Local banks have about an 8% spread on CAD to MXN and most credit cards add in a 2.5% FX fee in addition to the spread between buy and sell.

[Edited on 8-24-2021 by JDCanuck]

gnukid - 8-24-2021 at 03:25 PM

Using a Schwab checking account you can withdraw from any ATM and get current rates with no fees. Calling Schwab or sending a letter can open up withdraw limits to whatever you want so you can withdraw $US 4,000 per day or more, for example, construction supplies can be paid by CC or Schwab Debit card, check intl rates for all bank transactions before you use a card. For example, Capital One and Alaska (BOA) CC sometimes have no intl fees and good rates.

Xoom, Western Union, etc for transfers to Intercam or other bank accounts.

US or foreign cash is not generally very helpful because its hard to use and the x-cahnge rates are not good for workers


[Edited on 8-24-2021 by gnukid]

Bob and Susan - 8-24-2021 at 03:33 PM

but the mexican bank will limit you to lets say 7000 pesos a day
the american bank can be unlimited
you just cant get your money
Quote: Originally posted by gnukid  
Using a Schwab checking account you can withdraw from any ATM and get current rates with no fees. Calling Schwab or sending a letter can open up withdraw limits to whatever you want so you can withdraw $US 4,000 per day or more,...

gnukid - 8-24-2021 at 03:36 PM

I can withdraw as much MN pesos from my US Schwab as I want per day, but it comes in the limit for the bank machine, so, let's say it's 15,000 each transaction or so, you repeat the transaction up to your total lets say 10x15,000 until you have 150,000mn in your pocket then each of the transaction fees are refunded every month.

Intercam is the easiest bank to open an account for foreigners, I don't recall any requirements other than ID.

I have success with Santender, Banorte, BVBC, ScotiaBank etc

[Edited on 8-24-2021 by gnukid]

nbentley1 - 8-24-2021 at 03:48 PM

I appreciate all the input and I think we have a good way forward. Thank you.

bajatrailrider - 8-24-2021 at 04:13 PM

If this helps my chase bank sends pesos to my Mexican bank Santander. High exc rate 5 grand or over no fee.

JDCanuck - 8-24-2021 at 07:24 PM

Quote: Originally posted by gnukid  
I can withdraw as much MN pesos from my US Schwab as I want per day, but it comes in the limit for the bank machine, so, let's say it's 15,000 each transaction or so, you repeat the transaction up to your total lets say 10x15,000 until you have 150,000mn in your pocket then each of the transaction fees are refunded every month.

Intercam is the easiest bank to open an account for foreigners, I don't recall any requirements other than ID.

I have success with Santender, Banorte, BVBC, ScotiaBank etc

[Edited on 8-24-2021 by gnukid]


Thanks for the info on Intercam. We will try to find one and see if we as no-residents can open an account there. Very low costs according to this:

https://www.intercam.com.mx/customers/online-banking/?lang=e...

gnukid - 8-25-2021 at 10:33 AM

When/if the bank asks for a current original and copy of CFE and SAPA it doesn't need to be yours nor in your name?@#$%! It's sounds odd. So, it helps to have a friend with bills if you don't have them, they often also ask for list of 2-3 local references with names and phone numbers and they will call. So, prepare these items when you go to the bank just in case. Have some efectivo money to deposit to begin the account.

You may ask/call/email Intercam for requirements

Make a folder or plastic bag with the following for your trip to the bank

1)Your passport ID and copy, an address where you can receive mail in Baja
2) List of references names and phone numbers of people who can confirm they know you as a friend or relation
3) Current Original and Copy of CFE/SAPA, you can return the bills (Cobrabante) to the owner when you are done
4) FMM or resident visa

Here is a reference of requirements that seems accurate
https://www.psimonmyway.com/open-a-bank-account-in-mexico/



[Edited on 8-25-2021 by gnukid]

nbentley1 - 8-25-2021 at 03:24 PM

Thanks you

shari - 8-25-2021 at 05:50 PM

Quote: Originally posted by Howard  
I Western Union money to my gardener when I am not there. Very easy to do on the computer and he goes into any number of places to pick it up. The charge was rather nominal.

I wonder if you could send it to yourself? The name as to who you send it to must match 100% to the ID they present for pick up.

Google Western Union and see the rules. I do not know if there is a maximum.


We have awful problems with Western Union in the village...it was the only ATM machine for Bancomer & Banamex but now it doesn't take Bancomer any more which is what most people have here.
The other issue is it is often without much money in the kitty...sometimes they limit withdrawals to 2,000 pesos so if you send money this way send it in small limits no larger than 5,000 pesos.
AFter waiting in a long line, then the internet goes down...never ending issues there.
My guests & expats sending $ to Mexican bank account use Wise.com

JDCanuck - 2-11-2022 at 09:18 AM

Just sent cash to my relatives via Western Union and found the combined currency loss and transfer fee came to about 7%. Having my relatives open a new bank account in their name and then using XE Transfer to send them money to pay taxes and utilities at the local OXXO. Costs are now about 0.5% percent(no fee but 0.5% spread off the exchange midpoint) but still a significant hassle for them to pay bills locally.
Will definitely look into Intercam and a local credit card when I am next down there....Thanks Gnukid

BajaNomad - 2-11-2022 at 09:28 AM

Quote: Originally posted by shari  

My guests & expats sending $ to Mexican bank account use Wise.com


I've had success using the following for international money transfers:
https://www.moneygram.com

Fees seem to be lower than other services - at least for the countries I've chosen to compare.

Cancamo - 2-11-2022 at 10:08 AM

Transferwise, now called Wise? Bank account to bank account, fast, efficient, and cheap.

Keep in mind, cash withdrawals are limited due to money laundering regulations.

Smaller amounts, Western Union, cheaper to send to Mexico, than within the U.S.

Cancamo - 2-11-2022 at 10:57 AM

Transferwise, (Wise), dollar account, (NOB) to dollar account, (SOB).

Problem is withdrawals are limited per month, not the amount sent. Withdrawals from said account can be made with a corresponding debit card, requesting pesos, (uncertain if there is a limit here), decline their conversion rate.

If checks are accepted, write a check from same dollar account, no limit.

In addition, Charles Schwab debit card. Between all the options......

JDCanuck - 2-11-2022 at 11:12 AM

Quote: Originally posted by Cancamo  
Transferwise, now called Wise? Bank account to bank account, fast, efficient, and cheap.

Keep in mind, cash withdrawals are limited due to money laundering regulations.

Smaller amounts, Western Union, cheaper to send to Mexico, than within the U.S.


The problem I found with Western Union was the (warnings in fine print) exchange rate they gave. I got 16.10 pesos per CAD at XE Transfer and no fees, giving me 16,100 pesos for 1000 CAD and only 15.44 through Western union giving me 15,446 pesos for 1015 CAD within minutes of each other. I found similar really poor exchange rates on wires from my bank, running about the same as Western Union. Advantage to Western Union is it was extremely fast.

Best way to do this comparison is momentary quotes comparing senders which both XE and Wise provide,
Just tried that and XE took the top rating with 15,998 pesos or 15,880 using Wise. Altho Wise gave a slightly better exchange rate, the fees deducted from source funds yielded less at the target account.

Cancamo - 2-11-2022 at 11:18 AM


Just tried that and XE took the top rating with 15,998 pesos or 15,880 using Wise. Altho Wise gave a slightly better exchange rate, the fees deducted from source funds yielded less at the target account.

Dollar account to dollar account, no exchange rate.


JC43 - 2-11-2022 at 03:56 PM

U.S. Dollar account in Mexico impossible for non residents!
Residente Permanente status a must to open a USD account.
And a current tax I.D. U.S.
And a current tax I.D. Mexico.
and much more.

bajafreaks - 2-11-2022 at 04:26 PM

Not sure where you are building but we have an account with Intercam they have been great. I lease my property, so we showed them a copy of the lease and got a "recommendation" from our landowner. I'm assuming if your contractor has a good rep in town, he could be your referral. When we get to town we deposit and American check into our account and have access to pasos withing a few hours.

JDCanuck - 2-11-2022 at 05:04 PM

Quote: Originally posted by Cancamo  


Dollar account to dollar account, no exchange rate.




You have a USD account in Mexico Cancamo? Or do you mean a transfer within Mexico of Mxn dollars? I was wondering if it was possible to open a USD account in Mexico for a Mexican citizen and what it might entail.? In that case i could just send to a USD account in Mexico from my USD account here in Canada and not have to worry about exchange rates.

[Edited on 2-12-2022 by JDCanuck]

Cancamo - 2-11-2022 at 08:48 PM

You have a USD account in Mexico Cancamo? Or do you mean a transfer within Mexico of Mxn dollars? I was wondering if it was possible to open a USD account in Mexico for a Mexican citizen and what it might entail.? In that case i could just send to a USD account in Mexico from my USD account here in Canada and not have to worry about exchange rates.

[Edited on 2-12-2022 by JDCanuck]

Yep, Yep, to all the above; dollar checking account with a corresponding credit card, peso account with a debit card. Have had both well over 20 years with Banorte, (they were Bancrecer? back then). Never been asked for US TIN, or Mexican Tax Id, although I have both. Must have opened accounts before regs took place.


JDCanuck - 2-12-2022 at 01:14 PM

For Other Canadians: Tried to set up a Transferwise (Wise) account to send pesos to a Mexican account from Canadian account but does not support international transfers to other countries from Canada. Try XE as an alternative as they do support transfers from Canada to Mexico accounts.

Udo - 2-12-2022 at 07:58 PM

Exactly!

On many occasions, the Mexican banks lose a connection to the US banks, and therefore will not be able to take out money.

It has happened to me several times.

I would never open a Mexican bank account. Even Mexican citizens don't have any rights when it comes to banking. I have known dozens of people who lost $thousands and had no recourse. I have a neighbor who lost tens of thousands to an employee at a Mexican bank who did an identity theft on them (Mexicans). The bank would not even release the employee's name to my neighbor and the person is still working at the bank!

The Mexican banks are worse than the IRS in the USA.

In the USA, I opened a banking account with a Mexican bank. After 5 years, the Mexican government closed all the USA branches of that bank. The few hundred USD I had in there were gone when they closed. I had it for money transfer convenience. Now I have an ATM with no foreign transfer fees and no withdrawal fees in Mexico.

I currently use ZELLE or PAYPAL to pay contractors.

[quote=1219010&tid=96479&author=Bob and Susan]but the mexican bank will limit you to lets say 7000 pesos a day
the american bank can be unlimited
you just cant get your money
Quote: Originally posted by gnukid  
Using a Schwab checking account you can withdraw from any ATM and get current rates with no fees. Calling Schwab or sending a letter can open up withdraw limits to whatever you want so you can withdraw $US 4,000 per day or more,... [/rquote]

pacificobob - 2-12-2022 at 08:42 PM

I have had both dollar and peso accounts for years. Never had any issues.
One just needs to learn how banking works here.