How to Send Money to Honduras

There are different ways to send money to Honduras, but senders must consider payment methods, transfer times, costs, and other relevant details. Here's the best transfer option and how it compares to others!

If you are looking for different ways to send money to Honduras, we listed below some options. Keep reading and find out which is the best way to send money to Honduras.

Money Transfer Services

Money transfer platforms are services that offer to send funds to Honduras from other countries. These are mostly online-based services, although some also offer to send money from a physical location. But the convenience of moving funds from any location 24/7 is why users focus on using online money transfer services.

Sending money to Honduras via a money transfer service is simple. You register and verify an account; the sending process only takes a minute or two. It involves selecting the desired payment and delivery methods and sums to send.

Depending on the money transfer service or the money transfer company you choose, you can send money to Honduras from over 170 countries worldwide. Transfers could take as little as minutes, although some methods take a couple of working days. But overall, MTPs are the fastest, easiest, and most affordable options to move funds to Honduras.

Wire Transfers

Wire transfers usually take multiple working days, and the receiver might not have funds available for an entire week. The charges incuded when you send money are unfavorable since the intermediary, and the receiving financial institution might both have their fees.

Due to all this, it's hard to recommend wire transfers for sending money to Honduras. They used to be the only option to send money, but you have far better alternatives to send money today.

Bank Account Transfers

Banco Atlantida, Banco Azteca, and Ficohsa are among the financial institutions supporting international money transfers in Honduras and many MTPs work with these platforms to send money.

Challenger Banks

Neo or challenger banks focus on providing digital services to their clients. Many are online only, and famous examples include Revolut and N26.

While some are available in Honduras, most challenger banks don't consider international money transfers their primary service. As a result, the fees charged when you send money could be high. And there's always the question that challenger banks aren't as solvent as large financial institutions. If you are sending large sums, it's better to stick to MTPs.

Mobile Apps and Payment Services

Major payment services like Google Pay and Apple Pay aren't available in Honduras. The alternative lies in using mobile apps offered by international money transfer providers.

Most platforms to send money have specialized Android and iOS apps. And even if money transfer services don't, you can use mobile web browsers to access money transfer service websites, which have a responsive design. The interface will adapt to your device to ensure an optimal experience. Access to money transfer services is very simple and most of them offer a mobile app.

PayPal

PayPal is the world's most popular e-payment service and one of the industry pioneers. It has a long reputation and supports sending money to Honduras.

While it offers a decent amount of anonymity since you only reveal your PayPal address to the receiver, this service is expensive. PayPal has unfavorable conversion rates and fees that go up to 5%. International money transfer platforms can be equally fast while keeping fees low.

Money Transfers to a Pickup Location

This can be an offline method of sending money to Honduras. You can also place an order online via a website like Western Union or Ria and then take the funds to the nearby agent location. This is a good option to send money if you live close to one of these agent locations. If you don't live close to any cash pickup locations, it may not be worth to use this option.

The downside is this isn't available in all countries, and the closest branch could also be far. Things are much faster when using MTP's websites or apps.

International Money Orders

International money orders are available via USPS when sending funds to Honduras from the United States. To send money it's necessary to go to a Post Office location and purchase a money order. The issuing charge is USD 49.65, and the maximum value per order is USD 700.

Honduras is among the countries where you can collect these orders. However, this option to send money is expensive, especially for the senders. On top of that, money orders could take days to arrive. MTPs are a faster and more affordable option to send money to Honduras.

What Do You Need to Send Money to Honduras?

The sender needs to prepare the following things when moving funds to Honduras:

• Sending sum plus involved costs. Consider the fees to ensure the receiver gets the promised amount and you know how much you'll need to pay in total.

• Valid ID. It's necessary to provide a government-issued IS or passport with a photo.

• Deposit method. You can pick from cards, bank transfers, cash, etc. However, it's necessary to pick one before sending it.

• Recipient's details. Most platforms require a bank account number, name, phone number, and other details. It depends on the method used to send funds.

• Source of money documents. You need to prove how you got the money. Bank statements, salary checks, property sale contracts, and other documents could serve as confirmation.

In 2021, only 38% of Honduran adults had a valid bank account. While that's an option to receive funds, there are other alternatives, which will be reviewed below.

Location Pick-Up

Cash collection is a convenient option if the receiver doesn't have a bank account. Many MTPs have agents in Honduras – for example, if you want to send money via Western Union, it has over 800 locations. The receiver will need to head to the branch and request a payment based on the info you provide.

Direct Bank Deposits

These are convenient to send money as the receiver don't have to do anything. The bank notifies them about receiving funds, and they can collect them via an ATM or by visiting that institution. Bank account deposits are safer than cash collections since the receiver doesn't have to collect the entire sum immediately.

Cash Delivery

Home delivery can be an option with some payment providers. Although it's convenient for rural areas or people with limited mobility, it's often not possible in Honduras. The providers charge extra for delivering the money to the designated address.

What Do You Need to Receive Money in Honduras?

The receiver will probably need to provide the following to collect funds in Honduras:

• Honduran ID. It should be valid and contain a photo, so you'll need an ID, passport, or driver's license.

• Transfer number. The tracking number and other info are something the sender should provide.

• Sender's info. Some institutions might require details about the sender to confirm the receiver knows where the money's coming from.

Western Union is among the most widespread international money transfer platforms. It's available in over 200 countries, and you can send money to Honduras from almost the entire world. You can pick from multiple receiving options - cash pickup, bank account, or Visa debit card transfer. Most transfers occur almost instantly or on the same day. You can transfer money the way that suits you most. Sign up to easily track your money transfers.

Find below some advantages and disadvantages when choosing this option to send money. Also, you should find out it there are cash pickup locations close to you.

Advantages

• Over 800 locations available in Honduras

• Generous rewards program

• Mobile apps support sending on the go

Disadvantages

• The limit per transaction is USD 5,000

• Bank transfers could take up to four business days

3 Steps to Start Using the Provider

1. Open the online form on Western Union's website.

2. Enter the destination country, amount, and other parameters.

3. Check the rates and finalize the offer.

Best Alternatives

• WorldRemit, Ria, TransferGo

Remitly offers a more favorable exchange rate for the first transfer and won't charge any fees for the initial transaction. If you send from US or Canada, it's possible to transfer USD or CAD, and not only HNL. Remitly partners with leading financial institutions in the country, such as Banco Atlantida, Banco de Occidente, and Banco Azteca.

When you transfer money with Remitly, you will be prompted to select a delivery option. The options available are based on where your recipient is located.

Advantages

• Express transfers usually take only a few minutes

• Guaranteed delivery time, or you get a fee refund

• It supports sending Visa debit cards

Disadvantages

• Express transfer fees are unfavorable and grow proportionately to the sending sum

• The Economy option could take several business days

3 Steps to Start Using the Provider

1. Visit the page dedicated to sending money to Honduras on Remitly's site.

2. Register an account and pick a payment method.

3. Finalize the transaction.

Best Alternatives

• Ria Money Transfer, WorldRemit, MoneyGram

XE Money Transfer processes payments fast, which is a huge advantage. Most transfers are completed on the same day, although using direct debit from the US could take up to three days. The platform has fast page loading times and an intuitive app for Android and iOS.

Advantages

• Simple sending process

• A great option for large amount transfers

• Transparent pricing and no hidden fees

Disadvantages

• The converter doesn't show the actual XE's exchange rates

• Bank transfer is the only method available in most countries

3 Steps to Start Using the Provider

1. Check the rate and available payment methods on XE's website.

2. Register an account and verify your data.

3. Finalize the transaction.

Best Alternatives

• Ria Money Transfer, WorldRemit, TransferGo

Thanks to international money transfer platforms, your money could be available to the receiver in Honduras in minutes. But the speed depends on the payment and delivery methods, as well as the transfer type. Here are the fastest options to transfer funds to Honduras!

Some platforms offer express transfer options that come at a higher fee but consider your transaction a priority. These transactions usually complete within 30 minutes, even if the provider mentions 24 hours as a limit. Apart from being the fastest, the platforms above have a clear pricing overview, so there's no worrying about hidden fees!

Most international money transfer platforms earn from offering exchange rates below the mid-market level. The trick lies in finding the money transfer company with favorable rates, especially if sending large sums. These platforms will ensure you lose the least during the conversion and sending money to Honduras!

Apart from exchange rates, there's the question of fees imposed by money transfer providers. Many platforms offer free initial transfers, as well as lower charges for specific methods and standard transaction types. Although it depends on the payment and delivery options, the services above provide the most affordable services when moving funds to Honduras.

It's mandatory for all money transfer services recommended by Moneyzine to have valid licenses and safety certificates. Some money transfer services understand that users might have security concerns, so they go the extra mile by implementing extra features. Here are some examples of additional security options on money transfer providers!

Having the option to track your transfer in real time and monitor its status at any moment provides peace of mind. It also helps knowing platforms gather teams of top-quality experts that work on securing their servers around the clock. Finally, reading a detailed guide on how to recognize potential fraud will ensure users feel safe during every step of transferring money to Honduras.

Mobile apps are the best way of sending money on the go. Many users see them as an easier and faster option than having to access the website. Although most providers have apps to send money to Honduras, here are the services with the top mobile software!

The apps mentioned above are available on Android and iOS devices. You can find them on the platforms' websites or the app store on your device. After installing, you should use existing credentials if you already have an account with that provider.

The critical authority to consider is the Comision Nacional de Bancos y Seguros de Honduras (CNBS). Roughly translated, this is the National Commission of Banks and Insurance, and it's the local banking regulator.

However, it's the Financial Services Authority that regulates other financial service providers. FSA is also a government institution, and it monitors the financial industry ensuring all entities follow anti-money laundering and other relevant regulations.

The sum you can send to Honduras depends on multiple factors:

• Limitations by local institutions. Some banks have restrictions at USD 1,500 per transfer, while others have daily limits of up to USD 3,000.

• Restrictions by money transfer providers. It depends on the platform – for example, Western Union allows sending up to USD 5,000 per transaction. However, Remitly only allows sending USD 999 daily before verifying your account.

While the local government doesn't set a limit on how much you can send to Honduras, large transactions often trigger red flags. That means they could require additional documents and identity verifications.

Unless you send in USD or another currency allowed by the money transfer provider, your funds will first be converted to HNL. But most platforms have courses worse than the mid-market rates, which is how a money transfer company earn per transaction.

For example, one platform might offer HNL 25 per USD 1 and another HNL 24 per USD 1. If you would like to transfer money and you have large sums to send, this becomes vital since you could lose more than intended in the conversion process.

Most money transfer company options also have transaction fees, varying on the transfer method and speed. Many platforms offer benefits to new users and reward programs for loyal customers.

Honduras receivers use most remittances for fundamental living costs, including food, clothes, and household necessities. Medical and education expenses, as well as birthday and other gifts, are other reasons to send money to Honduras. These are all considered by international money platforms as individual transactions.

But there are also business transactions. These include buying something from a seller in Honduras, and it's a whole different category. If you are transferring money as a business entity, you need a special business account. The process and fees could also be different.

Honduras has CNBS and FSA as authorities that regulate banking and financial industries. Money transfer platforms often obtain licenses from other countries, such as FCA in the UK. That boosts money transfer service reputation on an international level.

Server security is another crucial area when choosing a platform to send money to Honduras. The services recommended on this page all have multiple security layers and apply KYC, AML, and other programs to ensure everything runs smoothly.

As the sender, there aren't any taxes you need to pay in Honduras. However, the receivers are subject to a personal income tax that applies to worldwide revenue sources.

Anyone who receives up to HNL172,117.89 annually is exempt from paying this tax. But the rates above this sum vary from 15% to 25%.