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When you look to send money to your family in your home country, you encounter terms that sound similar but work in very different ways: wire transfer, ACH, SWIFT, remittance. Choosing the wrong type can cost you between $25 and $50 in additional fees, or leave you waiting up to five days for the money to arrive.
Not all transfer types are suitable for sending money abroad: ACH is exclusive to the U.S., wire transfers reach any country but charge between $25 and $50 per transfer at traditional banks, and remittance services like Félix Pago are specifically designed for transfers from the U.S. to Latin America, with flat fees starting at $2.99 and delivery in minutes.
The 3 types of transfers from the U.S.: wire transfer, ACH, and remittance services
There are three main systems used to transfer money electronically. Each has a different logic, and understanding them saves you confusion and money.
Wire transfer (International bank transfer, also called SWIFT):
This is the traditional method for sending money between banks in different countries. It uses the SWIFT network, which connects thousands of financial institutions around the world. You can send money to virtually any country, but the cost is high: U.S. banks typically charge between $25 and $50 per transfer, and the receiving bank at the destination may apply an additional charge. Delivery time varies between 1 and 5 business days. It is the method used by companies for large international payments, but for sending remittances to family, its costs do not make sense.
ACH (Automated Clearing House), the U.S. domestic transfer system:
ACH is the network that processes transfers between banks within the United States. You use it when you pay someone from account to account within the country, when you receive your payroll via direct deposit, or when you pay a utility bill. It is cheap or free and generally takes between 1 and 3 business days, although more and more transfers are becoming instant. The critical limitation is that ACH only operates within the U.S.: you cannot use this network to send money directly to an account in another country.
Remittance services (specialized companies like Félix):
These are platforms specifically designed for international transfers between individuals, particularly from the U.S. to Latin America. Instead of using traditional banking infrastructure, they operate with their own payment networks or with local partners in each destination country. This allows them to offer low flat fees, competitive exchange rates, and much faster delivery than a wire transfer.
Remittance services are not banks: they are money services businesses regulated by FinCEN at the federal level in the U.S. They operate with the same compliance obligations as banks regarding identity verification and money laundering prevention, but with a cost structure optimized for frequent, low-amount transfers.
Which of the 3 transfer types to use to send money from the U.S. to Latin America
ACH is immediately ruled out: it cannot send money abroad directly. If your bank offers you an "international ACH" transfer, it is actually using an intermediary or converting the operation to another system.
Wire transfer (SWIFT) reaches any country, but its costs make it an expensive option for regular remittances. If you send $300 and the bank charges you a $35 fee, you are losing more than 11% of the amount before the exchange rate even comes into play. Furthermore, the 1 to 5-day timeframe can be critical when the family needs the money urgently.
Remittance services are the option designed for this case. Félix, for example, charges from $2.99 for bank deposits, delivers the money in minutes in most cases, and operates entirely via WhatsApp without the need to download any application. For cash pickups, the fee varies by country: you can see the details in the fees by country. You don't need to go to a bank or fill out wire transfer forms.
How to choose: comparison of the 3 types
| Type | What it is used for | Speed | Typical cost | Ideal for |
|---|---|---|---|---|
| Wire transfer (SWIFT) | International bank-to-bank transfers | 1-5 business days | $25-$50 per transfer (sending bank) + receiving bank fee | Business payments or very large amounts |
| ACH | Transfers within the U.S. | 1-3 business days (or instant) | Free or very low cost | Domestic payments: payroll, bills, account-to-account in the U.S. |
| Remittance service (Félix) | Transfers from the U.S. to Latin America | Minutes (bank deposit or cash pickup) | From $2.99 per transfer | Frequent, low-amount family remittances |
The bottom line: if you send money regularly to your family in Latin America, a remittance service like Félix is the option that makes sense in terms of cost and speed. A wire transfer is useful if you need to send a very large amount to a specific bank account and the fixed cost represents a small percentage of the total. ACH is not an option for international transfers.
Note on the 1% U.S. tax (2026): starting in 2026, there is a 1% tax on remittances paid in cash in the U.S., approved via the One Big Beautiful Bill Act. This cost is added to the service fee you use and applies equally to all types of transfers when the payment originates in cash. Payments made with a card or from a U.S. bank account are exempt. You can read more in the article about the 1% remittance tax in 2026.
To start a transfer with Félix, message them directly on WhatsApp with no need to download anything. You can view the fees by country and the available countries before you begin.
Frequently asked questions
Can I use ACH to send money to Mexico or another country in Latin America?
Not directly. ACH is a payment network exclusively for transfers within the United States. If a bank or app offers to "send money internationally," it is using a system other than ACH to cross the border, such as a remittance service or a wire transfer. To send money to Latin America, you need a service designed for that purpose.
Is it safe to use a remittance service instead of a bank?
Yes. Regulated remittance services operate under the same U.S. federal laws as banks, including requirements for identity verification (KYC) and money laundering prevention (AML). Félix is registered with FinCEN as a money services business and holds SOC 2 Type I certification.
How long does a wire transfer from the U.S. to Latin America take to arrive?
Between 1 and 5 business days, depending on the banks involved, the countries, and processing times. Non-business days and weekends do not count. A remittance service like Félix delivers in minutes in most cases.
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