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Remittances from US to Latin America — complete comparison

How to send money from US to Mexico, Central America, South America: Wise vs Remitly vs Western Union vs MoneyGram vs banks, plus the new 2026 US 1% remittance excise tax (who pays, which transfers are exempt).

Sending remittances from US to Latin America

Remittances are vital income for millions of families in Latin America. US sends over $150 billion annually in remittances, primarily to Mexico ($60B+), Guatemala ($20B+), Honduras ($10B+), El Salvador ($8B+). This guide compares major services.

Today's US dollar exchange rates

Automatically updated: Mon, 20 Jul 2026. Reference mid-market rate — your remittance service may apply a margin.

Country	Currency	$1 USD =	$100 USD ≈
Mexico	MXN	17.54	1,754 MXN
Guatemala	GTQ	7.63	763 GTQ
Honduras	HNL	26.79	2,679 HNL
Colombia	COP	3,248.56	324,856 COP
Dominican Republic	DOP	58.55	5,855 DOP
Peru	PEN	3.39	339 PEN
Nicaragua	NIO	36.82	3,682 NIO

El Salvador and Ecuador use the US dollar — no conversion needed. For Venezuela, Argentina, Cuba, the official rate differs sharply from what families actually receive — verify the real rate with your remittance service.

See all corridors on the dedicated US dollar exchange rates page.

Quick service comparison

Service	Typical fee	Exchange rate	Speed	Best for
Wise	$1-$5 + 0.5%	Mid-market (best)	1-2 days	$500+ amounts, transparency
Remitly	$0-$4.99	Good (small margin)	Minutes to 3 days	Economy/express, multiple countries
WorldRemit	$1-$3	Good	Minutes to 3 days	Cash pickup + apps
Xoom (PayPal)	$2.99-$9.99	Fair	Minutes	If already use PayPal
Western Union	$5-$15	High margin	Minutes	Cash pickup big networks
MoneyGram	$4-$15	High margin	Minutes	Walmart pickup, agencies
Traditional bank wire	$25-$50	Very high margin	1-3 days	Very large transfers ($10K+)

By service

Wise (formerly TransferWise)

Best for: transparency + mid-market exchange rate

Fee: ~$1-$5 + 0.5-1.5% (much lower than WU)
Rate: mid-market (same you see on Google) — Wise only earns visible fee
Speed: 1-2 days typically
Methods: debit card, ACH, wire from your bank
Receipt: direct deposit to recipient’s bank account
Accepts ITIN: ✅ yes

Remitly

Best for: speed + pickup options

Fee: $0-$4.99 (sometimes $0 with first-transfer promo)
Rate: competitive (1-2% margin)
Speed: Express (minutes, more expensive) vs Economy (3 days, free or $0.99)
Receipt: bank deposit, cash pickup (Elektra, OXXO in Mexico), home delivery
Accepts ITIN: ✅ yes

Western Union

Most known but NOT cheapest. 2-5% exchange rate margin. Best for receivers needing cash pickup.

Best options by receiving country

Mexico

Bank deposit: Wise or Remitly Economy
Cash pickup (OXXO, Elektra): Remitly Express or Western Union
Digital wallet (SpinBy): Wise (cheapest)

Guatemala

Bank deposit: Wise or Remitly
Pickup at Banrural: Western Union (Banrural is agent)

El Salvador

USD is local currency — Wise is excellent (no conversion)
Chivo wallet (official) has low trust due to instability

Colombia

Wise particularly good for low COP margin
Bancolombia most foreign-transfer-friendly

The 2026 US remittance tax (1%)

A new federal excise tax on outbound remittance transfers took effect for transfers sent after December 31, 2025 (on or after January 1, 2026). It was added as IRC §4475 by §70604 of the One Big Beautiful Bill Act (Public Law 119-21, enacted July 4, 2025). The final enacted rate is 1% of the amount transferred — not the higher rates (5%, later 3.5%) floated in earlier drafts. (As of 2026-06-28.)

Which transfers are taxed:

Taxable (1%): transfers funded with cash, a money order, a cashier’s check, or a similar physical instrument — typically how walk-in cash-pickup transfers are paid for.
Exempt: transfers funded from an account at a US financial institution (your own bank account) and transfers funded with a US-issued debit or credit card.

How it’s paid: the sender owes the tax, but the remittance provider collects it at the time of the transfer and remits it to the IRS quarterly. For the first three quarters of 2026, IRS Notice 2025-55 gives providers penalty relief while they build collection systems.

Practical takeaway: funding a transfer from a bank account or with a US debit/credit card avoids the 1% on the amount sent; cash, money-order, and cashier’s-check-funded transfers are subject to it. Confirm how your provider funds and discloses the tax before sending.

Important IRS rules

If you send $10,000+ in a year to one person:

Gift Tax: if it’s a gift, exempt up to $19,000/year per recipient (2026, unchanged from 2025)
Not deductible as charity if going to family
FinCEN reporting if aggregate >$10K in foreign accounts — see FBAR

Tip: schedule recurring sends

If sending monthly, set up automatic transfers in your service to:

Avoid forgetting
Average exchange rates over time
Reduce mental friction

Banks that accept ITIN — open an account to fund bank-exempt transfers
ITIN — get your taxpayer ID for banking — required to open most accounts without SSN
ITIN mortgages — home loans — financing home purchases under ITIN
Form an LLC for business banking — separate business and personal finances under ITIN
State tax obligations — interest income is taxable under federal and most state law
Find an immigration attorney — for status issues affecting account opening

General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.

Frequently asked questions

What's the cheapest way to send money to Latin America?

For bank deposits, Wise is usually cheapest because it uses the mid-market exchange rate and charges only a small visible fee. For cash pickup, Remitly Economy or Western Union may fit better despite higher costs. Always compare the total amount your recipient actually receives, not just the upfront fee.

Does the fee or the exchange rate matter more?

Usually the exchange rate. Many services advertise a low or $0 fee but build their profit into a worse exchange rate (a ‘margin’), which can cost more than a visible fee on larger transfers. Compare the final amount received in the local currency to see the true cost.

How fast does the money arrive?

It depends on the method: cash pickup and ’express’ options can arrive in minutes, while bank deposits and ’economy’ options typically take 1–3 business days. Faster usually costs more.

Can I send remittances with an ITIN and no Social Security number?

Yes. Major services such as Wise and Remitly let you send money with an ITIN. You’ll verify your identity with an ID and may need a US bank account or debit card to fund the transfer.

Is there a US tax on money I send home?

Sending your own money abroad is not taxable income. However, a 1% federal excise tax (IRC section 4475) applies to remittance transfers sent after December 31, 2025 when they are funded with cash, a money order, or a cashier’s check. Transfers funded from a US bank account or with a US-issued debit or credit card are exempt. The sender owes it and the transfer provider collects it. Separately, very large gifts to one person in a year can trigger gift-tax reporting — the 2026 annual exclusion is 19,000 dollars per recipient. For specifics, consult a tax professional. (As of 2026-06-28.)

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General information, not legal advice. MigrantUSA is an independent publisher and is not a law firm; using this site does not create an attorney-client relationship, and this content is not a substitute for advice from a licensed attorney about your specific situation. US federal, state, and local government procedures, fees, and forms change. Always verify current details directly with the relevant agency before acting. For immigration, tax, or other legal matters specific to your situation, consult a licensed attorney or BIA-accredited representative.