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Transferwise Limits


Kiko

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Just a heads up with Transferwise,  there is now a $980 USD cap on amount to be converted and sent to my Mexican Bank,  Bancomer.  New Mexican banking rule as of the end of December.  If you want to transfer $4900 for example you will need to make 5 transfers.  The rules may change but Transferwise does not know when.  The cost of 5 multiple $980 transfers vs one transfer at $4900 will incur an additional 10% in fees according to their fee schedule.  I do not have a business account so maybe the rules are different with that account.

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11 minutes ago, Floradude said:

When I want more pesos  in my Mexican bank (Intercam)  I write a check on my Wells Fargo account in my name and deposit it in Intercam.  I recently wrote one for $10,000 USD. The fee for the check is 0.6 of the amount.

I'm not sure you mean .6 because that would be a $6,000 fee on a $10,000 deposit. If it was .6% or .006 it's still $60 on that same $10,000 deposit and $120 for a $20,000 deposit. Paying a fee that rises based on the amount of the deposit seems like a rip off as opposed to a fixed fee no matter the amount. Wire transactions are assessed a fixed fee independent of the amount. BBVA used to charge about $800 pesos and Multiva charges $10US for inbound wire transactions.

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So they assess 60 basis points on the exchange rate.

It's almost impossible to compare apples to apples on any money transfer solution. When I wire money down I've seen as little as a 10 basis point spread between what I got and xe.com or others that present those numbers. If the exchange rate was stable all day it would be easier but USD/MXN can fluctuate a lot in real time.

Unless 2 or more people transferred the same amount of money on the same day using 2 or more methodologies there's no way to really know the best deal.

I'm game for an experiment as I will soon need to wire more money down and the exchange rate is just under 20:1. Not great but it is what it is.

If anyone wants to participate in a semi-controlled test send me a PM. ATM withdrawals would also be useful in an attempt to clarify as much as possible the cost of moving money.

 

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17 hours ago, Floradude said:

When I want more pesos  in my Mexican bank (Intercam)  I write a check on my Wells Fargo account in my name and deposit it in Intercam.  I recently wrote one for $10,000 USD. The fee for the check is 0.6 of the amount.

I deposit cheques from my Scotiabank account in Canada to my account at Intercam and am not charged a fee by either bank as you have described. Who charged you a fee?

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The two that I have had accounts in (Banamex and now Intercam) always charge a fee to handle a check.  It happens automatically so perhaps you are not aware that it happens.  There is nothing that shows this other than you do not get the full exchange rate for the time that the bank processes the check.  For example, when my Social Security is deposited into my Intercam in comes in at the full rate for that time.  There is no reduction (fee) in what is deposited into my account.  

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31 minutes ago, Floradude said:

The two that I have had accounts in (Banamex and now Intercam) always charge a fee to handle a check.  It happens automatically so perhaps you are not aware that it happens.  There is nothing that shows this other than you do not get the full exchange rate for the time that the bank processes the check.  For example, when my Social Security is deposited into my Intercam in comes in at the full rate for that time.  There is no reduction (fee) in what is deposited into my account.  

I negotiate what I am going to get whenever I do my cheque transaction and it's always considerably lower than the posted rate in the lobby. I get that rate instantly upon deposit the day I am there to do it even though it takes Intercam 5 days or more for their service to get the $'s from  Scotia, so I  have severe doubts as to what you suggest about something I call nickle and dimeing,in any event. If they did such a thing it would appear as a transaction on your account as everything else does and it doesn't as you yourself have written.

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Returning to the original topic "Just a heads up with Transferwise,  there is now a $980 USD cap on amount to be converted and sent to my Mexican Bank,  Bancomer.  New Mexican banking rule as of the end of December."  Does this limit apply only to Transferwise or to all wire transfer services? Also is there a problem of transferring the limit every day from my US bank, USAA Bank to avoid additional fees? Also, will there be any additional fees applied by my bank, Bancomer, here? I want to sign up to one of these services and based on other threads here Transferwise seems like a good choice. Any comments on this service and the others, good or bad, will be welcome. Gracias  

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20 hours ago, Floradude said:

If the peso to the dollar is 20/1.  I would get 19.4 conversion on my $10,000 check.

Then your fee isn't .6 of the amount you are converting, which as another poster pointed out would be $6000. You are confusing exchange rate with percentage fee.

I have noticed that many people have no idea how to write %s in decimals. .6=60%   .06=6%

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6 minutes ago, gringohombre said:

 Also, will there be any additional fees applied by my bank, Bancomer,

I use xetrade to transfer. Because these online currency exchange companies transfer the money in the currency of the destination bank, there aren't any conversion fees on Bancomer's end. 

There may be a small admin fee, I've never really paid attention, as I get a few admin fees for other types of transactions, but if there is, it's not more than a couple of pesos.

It's when you get a transfer from someone who sends it in their home currency that you get dinged with a big fee on this end. Some folks I do a bit of property management for couldn't figure out how to sign up for transferwise, etc and just wired money in US$ and I got hit with a 200 fee for the currency conversion.

 

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1 hour ago, mudgirl said:

I use xetrade to transfer. Because these online currency exchange companies transfer the money in the currency of the destination bank, there aren't any conversion fees on Bancomer's end. 

There may be a small admin fee, I've never really paid attention, as I get a few admin fees for other types of transactions, but if there is, it's not more than a couple of pesos.

It's when you get a transfer from someone who sends it in their home currency that you get dinged with a big fee on this end. Some folks I do a bit of property management for couldn't figure out how to sign up for transferwise, etc and just wired money in US$ and I got hit with a 200 fee for the currency conversion.

 

Intercam has never "dinged" me with an admin fee for 3rd party cheques.

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45 minutes ago, mudgirl said:

How did you get from fees for receiving bank transfers in a foreign currency to 3rd party checks? One has nothing to do with the other.

transfer fro someone other than you no matter what currency or method of transfer is called a 3rd party and as an alleged Canadian you should know that it's cheque not check-eh!

41 minutes ago, Floradude said:

Yes, exchange rate is more explanatory than fee-- my bad. I always get the best rate from Intercam and the money appears in my account in a few hours always on the same day.  Nevertheless, whatever it is called you never get the full rate of exchange.  

 

Seriously! Banks should not make a profit on services provided to you and just hand over the"full" rate of exchange. Do you know any business at all that will gladly serve you at cost or below? Too funny!

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47 minutes ago, happyjillin said:

as an alleged Canadian you should know that it's cheque not check-eh!

I was born in the US and lived there until I was 17. So Canadian spellings don't always come naturally. Sometimes I'll use one or the other, without thinking about it. But I'm not "alleged" 🙂 -Canadian citizen since 1977, all my adult life there til I took up residence in Mexico.

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31 minutes ago, daisy2013 said:

Haha and Cheque is French

Cheque is the proper ENGLISH spelling. Americans use "check" and also spell a lot of other words differently that you will not find used in other English speaking countries.

https://www.merriam-webster.com/words-at-play/check-vs-cheque-british-english-spelling-usage

https://dictionary.cambridge.org/us/dictionary/english/cheque

 

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  • 2 weeks later...

Real life example from today.

I requested a $25,000US wire from Ameritrade. When Multiva received the wire request this morning they posted it at a 20:1 exchange rate. I received $500,000 pesos in my checking account. The fee was $200 pesos plus IVA so the real exchange rate I received was a little over 19.99. At the time the wire hit, the xe.com rate was about 20.15.

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