PROFECO publishes weekly a comparative analysis of different institutions offering remittances services. The information is grouped by U.S. city: Chicago, Los Angeles, New York, Dallas, Miami, Houston, Sacramento, San Jose, and Indianapolis. Additionally, PROFECO has the ability to include Directo a México participants.

PROFECO collects all of the information from each institution, including the charges involved in sending a remittance payment. Also, they ask for the foreign exchange rate that is used for the payment considering the following characteristics of the payment:

• Time required to settle the payment order
• Number of branches in the U.S.
• Distribution channel in Mexico

Service Options for originators and beneficiaries:

• If free phone calls or messages are offered
• Ability to deposit in a bank account
• Cancellation of payment with no additional costs
• Withdrawal by debit card
  

The following is the methodology behind PROFECO in order to calculate the remittances cost:
Both the transaction fee and the foreign exchange rate are considered in determining the best method of payment. For example, in order to send US$300 to Chicago, Illinois using Institution “X” and their account to account service, the institution charges a transaction fee of US$5 and the beneficiary will receive US$299.43.

The amount received, $299.43, is the result of the exchange rate differential between the “reference exchange rate” (foreign exchange average provided by all of the institutions in PROFECO) and “Directo a Mexico exchange rate”. In this case, suppose the reference rate is 10.55 pesos for US$1 and the rate offered by the Directo a Mexico is 10.53 pesos for US$1. The difference of 0.57 pesos is the spread that the institution takes.
For example: (US$300 * 10.53) / 10.55 = US$299.43

According to this methodology, the total cost of sending a remittance payment using this institution is US$5.57:
(US$300– US$299.43) + US$5 = US$5.57

To reach the PROFECO site, click here