Most of the money transfers between the United States and Mexico are made by Mexican expatriates who live and work in the United States. However, many Americans who live and work in Mexico require a stable means of sending money from their adopted country to their relatives north of the border. Alternatively, many Americans who live in Mexico on a temporary basis may continue to operate bank and retirement accounts in their home country. If these individuals earn substantial amounts of money during their time away from the United States, they may choose to repatriate a portion of their earnings to take advantage of certain taxation treaties between the two countries. Under certain circumstances, Americans who live in Mexico can avoid paying income taxes to the Mexican government.
There are several easy ways to send money across the border between the U.S. and Mexico. The most common means by which regular people send such funds involves a money transfer service like Western Union or MoneyGram. For a relatively modest fee, these outfits can safely and efficiently process cash transfers on a same-day basis. If you're planning on executing such a transfer, you should make several arrangements.
First, you'll need to choose a physical destination for your funds. You'll probably need to specify the exact city, state and terminal to which you'd like to send your money. For instance, you may choose a specific Walmart outlet in Austin, Texas as your destination. Some payment services may not require you to specify a particular location. If this is the case, you'll be able to send your funds to any of the service's terminals. It's important to note that some states restrict the amount of money that an individual can send or receive on a daily basis. For instance, Arizona limits the size of incoming and outgoing transfers to $500 per day.
You'll also need to confirm that you have a willing recipient for your funds. This person will need to arrive at the specified terminal and recover the cash that you sent. If you choose, this person can subsequently make a bank account deposit on your behalf.
Alternatively, you can use an electronic service to send funds directly to your bank account. You may be able to use PayPal, Xoom or your Mexico-based brokerage account for this purpose. If you choose to send money in this manner, make sure that it's denominated in the proper currency.