Send Money To Honduras

Ways to Send Money to Honduras

Hondurans sending money home have the option of banks or money transfer service providers. The choice of the channel to use largely depends on the recipient location, their banking status, the urgency of the funds, and the distributive network of the different players in the remittance industry.

International Wire Transfers

The Honduras banking system consists of 15 private banks and a total of 7 financial groups. Five of the banks control 93 per cent of the bank remittance channel in the country. In such a tight market the benefits of competition such as low-priced transfers and technologically advanced products are minimal.

Interbank transfers are safe and convenient for sending large amounts of money. When sending from the United States, you’ll have an advantage because the Honduras financial system has 50.2 per cent of its deposits in the United States banks.

The biggest problem with the banking channel for sending remittances is that a large population of Hondurans are unbanked with little or no access to mainstream financial services. Secondly, bank transfers are relatively more expensive and much slower to complete.

Money Transfer Services

Most Honduran migrants in the U.S. use money transfer operators (MTOs) when sending money home. The transfers rarely exceed $3,000 per transaction making this method of sending very convenient.

While it is true that MTOs offer cheaper options to transfer money home, most Hondurans do not prioritise cost when sending money. They look at the geographical proximity of the provider in the country of destination, extended service hours, quick delivery times, reliability and non-bureaucratic operations.

There are two main ways of sending money to Honduras using money transfer service providers: bank transfers and cash pick up.

Bank Transfers- You can send money from the website or mobile app of the provider you choose straight to the bank account of your loved one. Unlike the traditional interbank transfer, this method is cheaper and takes a maximum of 3 days with providers such as WorldRemit and MoneyGram.

Cash Pick Up -Providers such as Xoom, MoneyGram, Remitly, and Western Union offer cash pickup as a sending option. This method is convenient when sending smaller amounts under $1,500.

Xoom has 530 locations from where your loved ones can collect their cash. MoneyGram has 1,500 locations spread across Honduras.

Transferring money through MTOs is a simple process. All you need is to signup for an account. You can register online through the provider’s website or use a downloadable app.

After you register for the account, pay for your transfer. There are three options you can use to pay for your transfer; bank debit, credit card, and debit card. Of the three methods, paying using a credit card is the most expensive.

With your transfer account funded, you can do the transfer to a bank or cash pick up location straight from the website or mobile app. Providers like Western Union allow you to start the sending process online and complete it at a physical store of your choice.

International Money Orders

Sending money to your family, relatives, and friends using money orders is a safe and convenient option. You can purchase an international money order from any post office in the United States. The maximum you can send per money order is $700.

In Honduras, you can cash international money orders at the following institutions, Banco Ficohsa, Elektra–Azteca, and Banco Mercantil. BAMER S.A. Together, they have locations totalling 543.

What’s Needed to Send Money to Honduras

Whether you choose to send money via WorldRemit, Western Union, MoneyGram or Xoom, there is some information you’ll have to provide. The information varies from one provider to the other. Below is a general list of what will be required irrespective of the provider you choose.

• The name of the sender as it appears on official government-issued documents
• An identity card issued by the state or government. In the United States, the sender can provide a passport, driving licence or social security card
• The amount to be sent
• The name of the recipient as it appears on their government-issued identity card
• The physical address and mobile phone number of the recipient
• If you choose a bank transfer, you’ll have to provide the Swift code, bank name, branch name and account number of the beneficiary

You may be asked for more information such as the purpose and source of the funds. Providers are under strict regulations hence must pass on the rules to their customers.

What Are the Ways of Receiving Money in Honduras?

Hondurans receiving money from abroad have different options available. However, two methods remain outstanding: direct bank deposits and cash collection from MTO locations.

Direct Bank Deposits

Hondurans who have bank accounts can choose to have their loved ones deposit money directly into their accounts. When receiving large amounts of money, the banking system is the most reliable and safer.

Depending on the instructions the recipient has given the bank, they may receive an SMS notification when the deposit is made.

Cash Collections

This method of receiving money is the most popular among Hondurans. Cash pick up locations for MTOs such as Western Union, MoneyGram, WorldRemit, Tranfast, TransferWise, and Xoom are in convenient locations like grocery stores, supermarkets, and fuel stations.

You can receive amounts of up to $1,500 with this method. However, if large amounts are involved, the best way is to deposit them immediately into a bank account. Also, when picking large amounts, have a trusted friend or relative to accompany you. Safety is of paramount importance.

What is Required to Receive Money in Honduras?

After the transfer is complete and the money gets to Honduras, the next step is to pick it up. For direct bank deposits, there are no documents you have to provide because the money is already in your account. When collecting your cash from agents, the following information will be required.

• The recipient’s government-issued I.D. The name on the document must be the same as that provided by the sender
• The transaction reference number. This number is forwarded to the recipient by the sender
• The recipient should identify the sender and the amount they expect to receive

In some circumstances such as in large or frequent transactions, the recipient may be asked to state the source and usage of the funds. These extra measures are ways to combat fraud and funding of criminal cells.