Sending Money to the Philippines: The Ultimate Guide for Expats

Sending Money to the Philippines: The Ultimate Guide for Expats

Are you in the Philippines, enjoying the sunshine and experiencing the vibrant culture? Whether you’re on a short visit or a long-term stay, there might come a time when you need to access funds from back home and planning to sending money to the Philippines. This can be for unexpected expenses, planned transfers, or simply topping up your travel budget.

This guide equips you with the knowledge for efficient and secure money transfers to the Philippines. We’ll break down the key factors to consider when choosing a service, explore popular options, and offer tips to maximize your transfers. With the right information, you can ensure a smooth financial experience throughout your time in the Philippines.

Understanding Sending Money to the Philippines

Before diving into the world of sending money to the Philippines, let’s break down the basics of international money transfers. Here’s what you need to know:

The Process:

You initiate a transfer with a money transfer service or bank.
The service or bank converts your home currency (e.g., USD, EUR, AUD) into Philippine Pesos (PHP). This involves an exchange rate, which determines how many Pesos you’ll receive.
The service or bank charges fees for their services. These can be transfer fees, processing fees, or margin fees built into the exchange rate.
The money is then delivered to the recipient in the Philippines through various methods like bank deposit, cash pickup, or mobile wallet transfer.

Things to Consider:

Transfer Fees: These can vary depending on the service, transfer amount, and payment method.
Exchange Rate: Compare rates offered by different services to get the most Pesos for your money.
Transfer Speed: Some services offer faster transfers for a fee, while others prioritize lower costs with slower delivery times.
Delivery Methods: Choose the option that best suits your recipient’s needs, considering convenience and accessibility in the Philippines.

Benefits of Using a Money Transfer Service:

Convenience: Transfer money online or through a mobile app from anywhere in the world.
Competitive Rates: Many services offer competitive exchange rates compared to traditional banks.
Speed: Get your money to your recipient quickly, depending on the service chosen.
Security: Reputable money transfer services use secure technology to protect your financial information.

By understanding these key points, you’ll be well-equipped to choose the best money transfer service for sending money to the Philippines.

Popular Money Transfer Services for Sending Money to the Philippines: Wise, Remitly, and Xoom

Now that you grasp the essentials of international money transfers, let’s explore some popular options for sending money to the Philippines, focusing on Wise, Remitly, and Xoom:

1. Wise (formerly TransferWise):

Strengths:
- Often known for its transparent and competitive exchange rates with minimal markups.
- Offers a variety of payment methods (bank transfer, debit card, credit card).
- Generally known for fast transfer speeds, especially for popular routes like Sending Money to the Philippines from US.
Weaknesses:
- Transfer fees can be slightly higher for smaller transfer amounts.
- Limited cash pickup options for recipients in the Philippines compared to some competitors.

2. Remitly:

Strengths:
- User-friendly interface with a focus on mobile app convenience.
- Competitive exchange rates, particularly for smaller transfers.
- Offers a variety of delivery methods in the Philippines, including cash pickup locations and mobile wallet transfers.
Weaknesses:
- Transfer fees can be slightly higher for larger transfer amounts compared to Wise.
- May have slower transfer speeds for certain routes compared to other services.

3. Xoom:

Strengths:
- Well-established brand with a large network of payout options in the Philippines, including cash pickup locations.
- Often offers promotions for new users or frequent transfers.
- Relatively fast transfer speeds for popular routes like sending from USD to PHP.
Weaknesses:
- Exchange rates might not be as competitive as Wise for some currencies.
- Transfer fees can be on the higher side compared to some competitors.

Remember: This is just a starting point! Always compare rates, fees, and delivery options offered by different services before making your decision.

Bank Transfers for Large Amounts to the Philippines

While money transfer services are often convenient for smaller transfers, you might be considering a bank transfer for sending a large sum of money to the Philippines. Here’s what to keep in mind:

Potential Benefits:

Potentially lower fees: For very large transfers, banks may offer more competitive rates compared to money transfer services.
Security: Bank transfers are generally considered a secure way to send money, often with established fraud protection measures.

Considerations:

Fees: Banks can still charge transfer fees, processing fees, and intermediary bank fees. Be sure to compare the total cost with money transfer services.
Exchange Rates: Banks may not always offer the most favorable exchange rates.
Transfer Speed: Bank transfers can be slower than money transfer services, sometimes taking several business days.

Before Choosing a Bank Transfer:

Compare Rates and Fees: Get quotes from your bank and compare them to money transfer services specializing in large transfers.
Transfer Speed: Consider how quickly you need the recipient to access the funds.
Minimum Transfer Amounts: Some banks might have minimum transfer amounts for international transfers.

Alternatives to Bank Transfers (Large Amounts):

Currency Specialists: Companies specializing in large currency transfers can sometimes offer better rates and faster processing compared to banks.

Remember: Carefully weigh the pros and cons before deciding on a bank transfer for large amounts. It’s always wise to compare options and ensure you’re getting the best possible deal.

Using Your ATM Card in the Philippines: Convenience with Cautions

While money transfer services and bank transfers are great options for sending money to the Philippines, you might also consider using your ATM card for direct access to your funds. Here’s a breakdown of the possibilities:

Benefits:

Convenience: Directly access your money at ATMs located across the Philippines.
Potential for Fee-Free Withdrawals: Some banks offer ATM cards with no foreign transaction fees, allowing you to withdraw funds without additional charges.

Considerations:

Foreign Transaction Fees: Many banks charge a foreign transaction fee (FTF), typically a percentage of the withdrawal amount, for using your ATM card abroad.
ATM Fees: ATMs in the Philippines might also charge their own withdrawal fees.
Exchange Rates: The ATM network or your bank might apply a markup to the exchange rate when converting your home currency to PHP.

Minimizing Costs When Using Your ATM Card:

Check for Fee-Free ATM Cards: Look for banks that offer ATM cards with no foreign transaction fees.
Use ATMs in Your Network: Whenever possible, use ATMs affiliated with your bank’s network to avoid additional ATM fees.
Withdraw Larger Amounts Less Frequently: While it might seem convenient to make multiple small withdrawals, this can rack up ATM fees. Plan your withdrawals to minimize these charges.