How to go about sending money home from the U.S.

There are several ways to transfer money overseas, one common but high cost way of doing so being to use money transfer companies such as MoneyGram or Western Union. While this option is convenient given that walk-ins are welcome and money is transferred fast, typically within an hour, there are some downsides. The fee for transfers increases with the amount of money sent and poor exchange rates can decrease the sum sent home. Other alternatives include money orders, available at banks and post offices, using banking services  (checks, debit cards, electronic transfers and rechargeable stored value cards) or special low cost wire transfers available at the post office and some banks. The Post Office is second most common way to send money from through wire transfer or international money orders. Wire transfers can only be up to $2000 a day offered to Argentina, Colombia, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua and Peru. Identification is required for transfers over $1,000 and cost ranges from $10-$20 per transaction, depending on the amount. The Post Office warns that when a recipient is designated, the name provided must match the name as on their ID. For money orders, a maximum of $700 can be sent at a time, but it is advised to save the receipts or get insurance. It is risky to send money through the mail and those who do are advised to check that the country they are mailing to does not restrict foreign currency and to make sure no one can see through the envelope. Large U.S. banks as well have developed ways to send money home with partner banks. “Directo a México” is a service to send money from a bank account in the United States to any bank account in Mexico. The U.S. Federal Reserve and the Banco de México created an interbank mechanism to process payments between both countries that would be available to all financial institutions in both countries enrolled in “Directo a México” to any individual who has a bank account in Mexico as of 2004.