The financial environment for Americans is changing overnight as new laws regarding money transfer come into effect. This financial law makes sure that money transfer becomes costlier for immigrants to send financial assistance to their homes regularly. This is one of the most striking changes that have happened in financial laws for money transfer for a long time.
‘One percent’ is charged in respect of payment systems
The remittance fee of one percent has been introduced in the United States in connection with the implementation of the “One Big Beautiful Bill” introduced by President Trump, which was to take effect on January 1, 2026. The newly introduced provision covers remittance services conducted using cash and checks. The newly introduced remittance fee would affect conventional remittances conducted using cash payment, money orders, and cashier’s checks.
The taxation system proposed also exempts the electronic money transfer services completely. This is quite a relief to the tech-savvy individuals. The money transfer services conducted via the account and credit cards sourced from the US will not attract an extra charge. This is quite an advantage to the online money transfer services as opposed to the money transfer conducted via cash transactions.
Tax-free alternatives are attractive to all
Those companies that only involve digital remittance services have the benefit of marketing their services as completely and totally tax-free alternative services to the conventional money transfer service. This will soon bring to an end the existence of companies that involve money transfer services that utilize the cash transfer payment processing method.
Mexico responds to a crisis with a financial solution led by its government
The President of Mexico, Claudia Sheinbaum, has been a countervailing force against the new taxation being introduced by the US Government ever since the concept came into being in early this year. As a result of the new remittance tax being imposed on its citizens, the government of Mexico has come up with the Finabien card project. The project will allow the citizens of Mexico to bypass the new remittance tax being introduced by the US Government. Mexload permits a transfer of up to $2,500 in a day with a maximum of $10,000 for a month, for only $2.50.
Among the people pushing for the use of the Finabien card are Carlos González Gutiérrez, Consul General of Mexico in Los Angeles, since the card provides an alternative platform for remittances to take place through electronic media rather than using the new rules of taxation. The Finabien card provides Mexican citizens in America an opportunity to make remittances without being hindered by the new rules of taxation.
The danger of economic influence affects the necessary global financial flows
The amount of remittances in 2024 is 62.5 billion dollars in Mexico, and it is 3.5 percent of the total country’s GDP, as presented in the statistics produced by Banxico. According to the forecasts of the representatives of Western Union, the tariff is expected to negatively influence remittances because it is estimated that there will be a decline of 1.6 percent in remittances, threatening the lives of millions of families. Remittances from January to September 2025 show that there is a drop of 5.5 percent in remittances compared to the figures in 2024.
The remittance tax is a paradigm shift in U.S. immigration as well as economic policies that reaches millions of households around the globe. While the new remittance technology offers a ray of hope for some of these households, for the traditional remittance community, the call for the remittance tax charge is but one more item penciled on their ledger. The Finabien initiative has shown one way that governments may shield their citizens from a paradigm shift while retaining their economic ties.
