Tag Archives | money

Xoom Updates: Still Best Way To Send Money To Argentina

xoom money transfer Xoom Updates: Still Best Way To Send Money To ArgentinaXoom has consistently been the US expat and tourist’s best way to send money to Argentina and take advantage of the discrepancy between the official exchange rate and the blue market exchange rate. For example, today’s official rate is $4.913, the blue market rate is $6.780 and Xoom is paying $6.313 before fees. We’re seeing more and more people choosing this option to extend their dollars’ purchasing power in Buenos Aires.

Of course, in Argentina things can change in a moment’s notice and Xoom and More Money Argentina (their local transfer partner), just announced that the sending limit has been lowered from U$S 2,999 per transaction to U$S 2,000 per transaction due to “new regulations.” At this time it appears that the 30 day limit of U$S 6000 has not changed. Unfortunately this means that you’ll be paying more fees to Xoom if you regularly moved larger amounts.

Also, when picking up money at More Money’s only location in Capital Federal at Libertad 1057, you’ll need to be prepared to provide the following documentation (as posted at their site):

Dear Customer:

Under present Argentine Authority’s regulations — A.F.I.P., Anit-Money-Laundering Law Nr. 25.246 and Financial Information Unit (UIF) Resolution 66/2012 — in accordance with F.A.T.F (Financial Action Task Force) rules, MORE MONEY TRANSFERS SERVICE is compelled to request from all its clients (those ordering or receiving money remittances) the following data:

  • Full name
  • Passport or MERCOSUR ID
  • Marital status
  • Address in Argentina
  • Telephone number (in Argentina)
  • E-mail
  • What links you to the sender?
  • Activity or purpose of your stay in Argentina
  • Purpose or destination of the money of this transaction
  • CUIT, CUIL or CDI (if applicable)
  • Source of funds involved in this transaction
  • If remittances amount is larger than AR $5,000, a sender’s identification number must be provided. Passport, ID Cards, Driver’s License and SSN are equally valid.
  • If remittance amount accumulates with previous transfers (on annual basis) a sum larger than AR $40,000, you must provide information about the origin of monies involved, such as: a sender’s bank statement, senders source of income (salary receipt, employment contract).

It’s a bit of a process but still very much worthwhile for the favorable exchange rate. And if you use our link, Xoom will send both of us a $25 Amazon.com gift card after your first transfer.

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Money Transfer Argentina: Xoom Follow-Up

xoom money transfer Money Transfer Argentina: Xoom Follow UpA few weeks ago I wrote about using Xoom to transfer money from the United States to Argentina (from the UK, use Azimo) and I thought now would be a good chance to follow up on my experiences and the experiences of a few others.

First of all, the rate has skyrocketed to 5.5357 dollars to 1 peso as of today. The official rate is at $4.469. This means that if you transfer the maximum amount of U$S 2,999 rather than withdraw from an ATM, you’ll be earning an extra $3032 pesos / U$S 692. That’s a 22% increase in your money! (UPDATE: as of April 2013, the blue market rate to official rate is at 80% more!)

My first transaction with Xoom was for only $25 and was completely painless. It took about 2 business days for the funds to appear in my Argentine bank account. I also received a $25 Amazon gift card for using a referral link (if you use this link, you’ll get a $25 gift card and so will I).

After that first transaction I decided to transfer the maximum amount – U$S 2999. That process was not as quick due to several verification steps. First I had to verify my identity with Xoom by sending them a photo ID. Next, I had to verify the echeck withdrawal amount from my US bank account. Then, More Money Argentina (Xoom’s transfer partner here) had to verify the source of the funds as well as DNI, CUIL/CUIT, address, etc. This process took just under two weeks. I have been told that the next transfers will go much quicker, but this is something to be aware of.

I transferred the money directly to my Argentine bank account, but I have had several friends go and pick up their money from More Money’s location at Libertad 1057 (open 9am – 6pm business days). This is the only valid location in Capital Federal even though the Xoom site lists other locations. All of my friend’s transactions were completed within two business days and all they had to do was show their passport when picking up the money. Some of them were asked for the source of the funds, but they simply said savings and all was good.

One friend was told that $10,000 pesos was the cut off point that triggered additional paperwork requirements. Another friend was told that Xoom transfers do not appear as cash advances if you use your credit card, though I would confirm this before transferring a large amount.

Have you tried it yet? As I mentioned above, we both get $25 if you use my referral link.

BONUS TIP: Here’s an interesting idea that will work if you have a US bank account and an Argentine credit card. You can make 10% or more on your money and even rack up frequent flier miles if you have a card that earns miles.

Pay yourself or someone else in the US using PayPal and your Argentine credit card. You’ll be billed the official exchange rate for these transactions on your credit card plus the PayPal fees. Now, transfer pesos to yourself using Xoom and pay your credit card with that money. Due to the differences in the official vs. Xoom rates, you will end up making money on the deal. There is a U$S 6000/month limit from Xoom, but this is an interesting way to take advantage of this currency discrepancy and make money for doing virtually nothing.

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Send Money To Argentina And Get The Best Rate

Post Summary: If you have a US bank account, use Xoom to send money to Argentina and get the blue rate. If you have a UK bank account, use Azimo to get the blue rate.

UPDATE: Xoom’s rates vary daily. This post was updated with their rate of $8.3292 on 8/27/13. The difference between the official rate and the unofficial rate has gone as high as 100%! Using your ATM card or credit card in Argentina is like throwing away money.
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Most U.S. expats in Buenos Aires have Charles Schwab bank accounts. This had consistently proven to be the best way to get money from U.S. accounts while in Argentina. Schwab gives you the standard day’s exchange rate for all withdrawals, charges no international fees and also refunds all ATM service charges (about $17 pesos per withdrawal). I was routinely getting over U$S 100 per month refunded to me. With all these great benefits, this next statement might sound weird…

stopped using my Schwab ATM card and all my US credit cards in Argentina as of May 2012.

I have found a better option – Xoom. (If you have a UK account, use Azimo.)

xoom money transfer argentina Send Money To Argentina And Get The Best RateXoom is an international money transfer service (like Western Union, but with much lower fees). You can send up to U$S 2,000 per transaction and up to U$S 6000 in a 30 day period. Here’s how it works:

  1. Go to their website, create an account and choose the amount you want to send
  2. Pay via direct debit from your bank account or choose to pay with debit/credit card (higher fees)
  3. Pickup the money from a More Money Transfers location or have it deposited into any Argentine bank account. If you choose to pick up the money, it will be ready within 15 minutes at most locations. Deposits to bank accounts take a couple of business days.

So, why is this better than using an ATM or foreign credit card? Because even with the Xoom fees taken into account, their exchange rate is so good that you’ll actually be getting more pesos on every transaction. For example, today’s official rate is $5.635 pesos per dollar. Xoom’s rate is $8.3292. Here’s a quick breakdown of how that works out with an ATM withdrawal:

SendATM / Credit CardXoomSavings
Amount (USD)Official RatePesos ReceivedXoom RateXoom Fee (USD)Effective RatePesos ReceivedDifference (Pesos)Difference (USD)% Saved
$25$5.635$140.88$8.3292$2.99$7.4394$185.99$45.11$5.4232.02%
$100$5.635$563.50$8.3292$3.75$8.0281$802.81$239.31$28.5242.47%
$500$5.635$2,817.50$8.3292$15.75$8.0748$4037.40$1219.90$146.4643.30%
$1000$5.635$5,635.00$8.3292$30.00$8.0866$8086.60$2451.60$305.1443.51%
$2000$5.635$11,270.00$8.3292$30.00$8.2061$16,412.20$5142.20$617.3745.63%

How much you save depends on how much you typically withdraw in a month, but you can see that at U$S 2000, you’re saving over 45%. Now you can see why I no longer use my ATM or credit cards, and send money with Xoom to my Argentine bank account and withdraw pesos from there. This also works great for tourists visiting the country – make a Xoom transfer before you come and then pick up your pesos at the More Money location in Buenos Aires when you get here.

You can also choose to use your credit card to transfer money to Xoom, but this has slightly higher fees and your bank will probably charge a cash advance fee as well as interest.

Want to give it a try? If you use any of my links to sign up, we’ll both get a $25 Amazon gift card from Xoom. This is pretty much free money too, because all you have to do is transfer $25 in order to get the gift card. So, if you only send $15, you’ll have $15 transferred plus an extra $15 on your bonus gift card for $0.29 more than a Schwab withdrawal would have cost you. Give it a try – there’s nothing to lose!

Some notes:

  • The Xoom website lists that you can pick up the money in pesos or dollars, but that is not correct. You can only get pesos.
  • I have transferred money to my bank account successfully and picked up money at More Money Transfers’ location.
  • There is only one location in Capital Federal (Buenos Aires central). It’s at Libertad 1057 between Santa Fe and Marcelo T. de Alvear.
  • If you have an ATM or credit card that charges fees, you can save even more money!
  • This works because Xoom is offering a rate is very close to the official ‘dolar blue‘ rate.
  • Xoom only works with US bank accounts or credit cards. You can use Azimo if you have a UK bank account.

Let me know if you were able to take advantage of this through our contact form and I’ll track that we both get the $25 Amazon gift card!

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