Migrants sending home part of their earnings POLL

When migrants send home part of their earnings in the form of either cash or goods to support their families, these transfers are known as workers’ or migrant remittances.

Transaction costs are not usually an issue for large remittances (those made for the purpose of trade, investment, or aid), because, as a percentage of the principal amount, they tend to be small, and major international banks are eager to offer competitive services for large-value remittances. But for smaller remittances—under $200, say, which is often typical for poor migrants—remittance fees typically average 10 percent,

An example where competition has spurred reductions in fees is in the U.S.–Mexico corridor, where remittance fees have fallen by more than 50 percent from over $26 (to send $300) in 1999 to about $12 in 2005. Fees appear to have leveled off since then. In addition, some commercial banks have recently started providing remittance services for free, hoping that would attract customers for their deposit and loan products.

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