6/6/2023
Those who live in the U.S. and have family members in Latin America understand the importance of remittances. In Busconómico we have already reviewed how to send money to other countries from the United States, such as Mexico or the Dominican Republic.
In this article we are going to focus on Colombia, so you can learn about the different ways to send money from the US.
Ways to send money to Colombia from the U.S.
Let's start by saying that the Colombian economy is the 5th largest in Latin America, behind Argentina, Brazil, Chile and Mexico. In addition to this, its tourism is growing by 12% every year.
In Colombia there are several services focused on sending and receiving money to and from abroad. Not in vain, Colombia received almost $8.6B in remittances.
The most used methods for this would be:
Bank transfers
Wire transfers are the most popular way to send money from the United States to Colombia. This is partly due to the fact that the banking sector in Colombia is well positioned in the local market. According to recent data, adult banking penetration exceeds 85%, there are more than 25 banks and an extensive network of ATMs.
As in other countries, sending money by this method is usually expensive. This is due to an accumulation of charges: the transfer itself, the exchange rate and the commission charged by the ATM. While a transfer can cost you $30 from the UK, sending money from the USA can cost up to $50 on average.
The possibility of lowering this fee depends a lot on the amount you are going to send to a relative or acquaintance. If you are sending a small amount (less than $500), the rates they give you are not the best, so you will be spending more money than with other alternatives.
Shipments by specialized agencies
In terms of preference, this option continues to gain space among Colombians established in the United States. There are several reasons: lower exchange rates, the speed of the process, the variety of services available and the convenience make sending money online a cheaper and more efficient alternative.
This modality gives you the advantage of simplifying the procedure and allows you to use apps, websites, recognized platforms and even do it in person at affiliated merchants. Most of these services offer you a free account to send money.
To send funds to Colombia, you have 2 main alternatives:
- Cash withdrawal. Companies like MoneyGram, Wise, Western Union, RiaMoney Transfer, Xoom, Remitly and others have many locations for the beneficiary to withdraw money.
- Bank-to-bank transfers. When the recipient has a bank account, the platform processes the transfer with affiliated entities. The time it takes to receive the funds will depend on the service you use.
International checks
This alternative is also a safe and effective way to send money to Colombia from the USA. However, it does have its problems, such as high cashing fees, less favorable exchange rates and less expeditious processing time.
What does it take to send money from the USA to Colombia?
Once you are in the United States, you must provide certain personal and financial information in order to complete this process and comply with the respective laws. In principle, you may be asked for
- Current official identification, such as SSN, ITIN, driver's license or state ID.
- Physical address of the person receiving the funds.
- Debit or credit card information (if applicable).
- Beneficiary's full name (same as on your ID).
- Bank information if it is a wire transfer: bank name, account and routing number, agency, among others.
How much can you send from the U.S. to Colombia?
The amount of money you can send to your family or friends will depend on the company or entity you choose. Taking Western Union as a reference, a non-resident in Colombian territory can receive up to $3,500 and a resident up to $7,500 per transaction.
How much does it cost to send money from the USA to Colombia?
When you opt for an international transfer, the fee can vary from $20 to $50 depending on the amount you decide to send. With apps and specialized remittance services, the price is between $2 and $10.
Currency exchange rate
The exchange rate from dollars (USD) to Colombian pesos (COP) will vary from bank to bank and for each online service. In fact, TransferWise claims to offer the lowest rate in the market. It also depends on the amount and the amount you will be sending, so it usually varies from 1% to 2%.
Estimated time of receipt
International transfers have a standardized processing time of 2-3 business days. On the other hand, transactions with apps or online platforms are faster, varying from a few minutes to a few hours.
The delay depends on whether you send money for withdrawal, pay by card or make a bank transfer.
Finally, we will tell you that Wise and WorldRemit are the best rated alternatives to send money from the United States to Colombia. If you want to know a little more about these services, we have reviewed them in Busconómico.
Español: ¿Cómo enviar dinero desde Estados Unidos a Colombia?