The Short Answer
For most transfers, Wise is the cheapest way to send money from the US to Mexico for bank deposits: it uses the real mid-market exchange rate and charges a small, visible fee of roughly 0.4%-0.7% — about $3-$7 on a $500 transfer. Remitly is an excellent rival — its bank-funded "Economy" option is often free — and it's the go-to pick when your recipient needs cash pickup at an OXXO store or wants instant delivery.
What you almost never want is a bank wire: US banks typically charge $25-$50 and bake a 2%-4% markup into the exchange rate, which on a $1,000 transfer can cost $45-$90 versus around $5-$10 with a specialist service.
Compare total cost, not just the fee
A "zero fee" transfer can still cost you if the exchange rate is marked up. Always check how many pesos actually arrive in Mexico — that's the only number that matters.
The Cheapest Services Compared
| Service | Typical cost | Exchange rate | Best for |
|---|---|---|---|
| Wise | ~0.4%-0.7% fee | Mid-market (no markup) | Lowest total cost, bank deposit |
| Remitly | From ~$1.99 (Economy often free) | Small markup | OXXO cash pickup, instant |
| Xoom / Western Union | Small fee + markup | Marked up | Cash pickup & reach |
| Bank wire | $25-$50 + 2%-4% | Marked up | Avoid |
See the exact fee on your amount with any of these calculators:
Delivery: Bank, Debit Card or OXXO Cash Pickup
How the money arrives matters as much as who sends it:
- Bank deposit: the cheapest route. Money lands in any Mexican bank account (CLABE) usually within 1-2 business days. Great for regular sends when cost matters most.
- Debit card / instant delivery: fund with a US debit card and the money can arrive in minutes to a Mexican debit card or account — handy when speed matters, though usually a bit pricier.
- OXXO cash pickup: Remitly and others support cash collection at more than 20,000 OXXO convenience stores across Mexico, plus Elektra and thousands of other agent locations. The recipient gets a reference number and picks up cash within minutes — the best option for recipients without a bank account.
If your recipient has a Mexican bank account, use it — bank deposit is almost always cheaper than cash pickup, and just as fast on the express tiers.
The USD/MXN Exchange Rate
The exchange rate is often the biggest hidden cost on a transfer to Mexico. The real mid-market USD/MXN rate moves daily and has recently been around 17-17.5 pesos per dollar (approximately 17.3 in early June 2026). Services that mark this rate up by 2%-3% quietly cost you far more than their advertised fee.
On a $1,000 transfer, a 3% rate markup is roughly 520 pesos lost — money your family never sees. Stick with a service that hands you the mid-market rate (Wise is the obvious one) and glance at the live peso rate before you confirm.
The 2026 US Remittance Tax
There's one new line item to know if you send to Mexico. Since January 1, 2026, a 1% US federal excise tax has applied to remittances paid for with cash or a money order — but it leaves transfers funded from a bank account or a US debit or credit card completely untouched.
For most people sending online, that's a non-event: Wise, Remitly and Xoom all draw from your bank or card, so they sit on the exempt side. The 1% only appears if you hand cash to a storefront agent — so if that's still your habit, here's your reason to switch to an app. (Tax rules can change; confirm your own situation before a large send.)
How to Pay the Least
- Pay from a bank account, not cash. ACH funding is the cheapest way in, and it keeps you on the exempt side of the new 1% cash tax.
- Insist on the mid-market rate. On anything past a small amount, the real peso rate (Wise) saves you more than a low advertised fee paired with a marked-up rate.
- Deliver to a bank or debit card rather than cash pickup when you can — usually cheaper, and just as quick on the express tiers.
- Bundle your sends. Since part of the cost is a flat fee, one larger monthly transfer usually beats several small ones.
- Cash in the first-transfer promo. Remitly and its rivals routinely drop the first fee and add a better rate — claim it once, then compare for next time.
Frequently Asked Questions
What is the cheapest way to send money to Mexico from the USA?
For bank deposits, Wise is usually cheapest — mid-market rate plus a ~0.4%-0.7% fee (about $3-$7 on $500). Remitly's bank-funded Economy option is also very cheap and often free, and is the go-to for OXXO cash pickup. Banks are the most expensive.
Can I send money to OXXO for cash pickup?
Yes. Remitly and others support cash pickup at 20,000+ OXXO stores plus Elektra and thousands of other locations, usually within minutes using a reference number.
How long does it take to send money to Mexico?
Cash pickup and debit-card-funded transfers are often available within minutes; bank deposits through Wise typically take 1-2 business days for a lower cost.
Is there a tax on sending money to Mexico in 2026?
The 1% US federal excise tax that began on January 1, 2026 only hits remittances paid with cash or a money order. Fund your transfer from a bank account or US card — the way Wise, Remitly and Xoom work — and the tax does not apply.
What is the USD to MXN exchange rate?
The mid-market USD/MXN rate moves daily and has recently been around 17-17.5 pesos per dollar. Look it up before sending and choose a provider that passes on that mid-market rate rather than a marked-up one.
Key Takeaways
- Wise is usually cheapest for bank deposits (mid-market rate + ~0.4%-0.7% fee); Remitly wins for OXXO cash pickup and instant delivery.
- Skip bank wires — $25-$50 plus a 2%-4% rate markup adds up fast.
- Funding from a bank or card keeps you clear of the 2026 1% cash-remittance tax.
- Check the live USD/MXN rate before sending — a 3% markup on $1,000 is roughly 520 pesos lost.
Send Smarter to Mexico
The US-to-Mexico corridor is one of the cheapest anywhere once you choose well: a mid-market-rate service, bank or debit delivery, and bank funding. Drop your amount into the calculators, glance at the live peso rate, and a couple of minutes of comparison puts more pesos in your family's hands.