Sending Money to
the Philippines
One thing that many ASAWA
visitors have in common is a recurring need to send money to the Philippines.
Most often, this is money sent on a monthly basis to in-laws to help pay for
schooling, rent, or food. Fiancés also find themselves sending money to their
future mates, albeit on a less regular basis, in order to pay for numerous
immigration forms, fees, and (of course) bribes to local officials. Then there
are those special occasions where you want to get a gift of some kind to a loved
one, but don't want to spend a fortune shipping it across the ocean.
So it's not surprising that a question I hear often is, “What's the best way to send money (or gifts) to the Philippines?”
Padala.com (http://www.padala.com)
The most convenient method of sending money to the Philippines. Offers Door-to-Door Service.
Pros: Easily the most convenient method to send money. You send the money from the comfort of your own home, from your computer, by having your checking account or credit card debited. The money can be delivered to the recipient personally, without the recipient even leaving his or her home. Also, at higher dollar amounts, the flat fee makes Padala less expensive than other services.
Cons: The flat fee is not as attractive in lower dollars amounts (under $100 U.S.). Takes 24-72 hours for delivery, so this works better for regular, planned remittances than emergencies.
Western Union
(http://www.westernunion.com)
The most commonly used
method to send money to the Philippines, at least by Americans.
Pros: Fast. Funds are transferred
almost instantly, funds can be either in Pesos or U.S. Dollars, often the sender
gets a free 5 minute phone call to the Philippines, which is just enough time to
give the receiver the Transfer number so they can pick up the money. Very
secure.
Cons: Fastest and most secure
method, but not the cheapest.
Mailed Payment
Pros: Very cheap.
Cons: Getting the Philippine
post office to deliver mail with money in it is akin to betting on the lottery.
Good luck. Even if the money does arrive, it will take weeks to do so, unless
you send it by FedEx or DHL, in which case you'll be spending more money to send
the money than it would have taken to have wired it. Also, personal checks and
money orders are often hard to cash and fees are charged for doing so.
MoneyGram
(www.moneygram.com)
A competitor to Western Union.
Pros: Almost instant delivery
of funds to the Philippines, and supposedly much cheaper than Western Union,
though I can't find a listing of their fees on their website. Otherwise,
similar benefits as Western Union.
Cons: Not nearly as many outlets as Western Union, either in the Philippines or the U.S. Cash only transactions, no online purchases.
U.K. MoneyGram
(http://www2.postoffice-counters.co.uk/moneygram)
This suggestion kindly offered
by an asawa in the UK:
"I would just like to tell you
of the fees from the UK using moneygram which can be done from main post offices
and funds are collectable at PNB in the Philippines. The fee for up to £100 is
£12 rising to £150 for £5000. I have found the service quick and reliable to
send funds to my friend in Cebu. More details can be found on the site (link is
above) in the section marked travel, money transfer. Here a full scale of
charges can be found, and hope this may be of use to the membership."
My thanks to Richard C., on
behalf of everyone in the U.K. who may find this information useful.
PNB (Philippine National Bank)
– branch listing at
http://home.netcom.com/~pnbnyc/pnbmnlho.html
Another method of getting
money to the Philippines is by opening a bank account with a bank that operates
both in your home country (for example, the U.S. or Australia) as well as the
Philippines. You actually open the account in the Philippines, close to where
the money will be withdrawn, then take or mail a payment to the closest branch
in your own country for deposit into that account. A gentleman from the forum
who uses this method describes the exchange as follows: “I write a check for the
desired amount and include the $5 fee [$2,000 or more does not require a fee]. I
mail this to them and they [PNB] transfer the money into the account in the PI.
Approximately 5 days later, the money can be withdrawn from the PNB branch in
the PI. The account is dollars to pesos, and the exchange is fair.”
Don M. was good enough to
add this comment: "We personally have a Peso account, and the deposit fee is $6
but our "Dollar Account" fee is $15. The PNB doesn't pay very much in intrest,
and they never send you a statement. Each time we go back, I'll deposit a few
thousand dollars in the PNB, before we leave, and withdraw it, in dollars, as we
need it while on vacation. If we have a considerable amount left over (and the
chances are remote) We will withdraw it and take it home. Usually we leave the
balance there for the next trip. Funds held for pick-up at a PNB Branch cost
$10, and delivery to the door cost $15."
Pros: Inexpensive and
secure. Faster than mailing a payment to the Philippines.
Cons: Slower than wiring money to the islands. Requires you to mail in your payments if there is not a PNB branch in your area. An account must be opened at a local branch in the Philippines.
SMC PADALA (www.padalaexpress.com)
I don't have any experience with this company, but according to the company's website it offers door to door and bank to bank remittance to the Philippines. Additional info from the site: "SMC has the most secured and safest phone payment process through the Electronic Fund Transfer (EFT) System guarded and funded by the US Federal Reserve System for your protection. We pre-fund your checks and savings debits instantly and transmit your money to the Philippines even your transaction takes 3 to 7 days to be deducted from your account. We operate through the Automated Clearing House (ACH) regulated by the National Automated Clearing House Association (NACHA), a U.S. Federation of Banks and Financial Institutions that protects and safeguards your transaction with us. No other Remittance System do it more quick and more efficiently than SMC! You do not have to go anywhere! We want you to save money and time! We want you to just rest and relax ! We do not want you to make tiresome subway trips or long expressway drive in the heavy traffic just to send money to the Philippines. You only have to do it by phone." I'll have to wait on the pros and cons until I have more feedback from users.
Standard ATM method
Using this method, you simply
open an account at any bank in the U.S., get an ATM card that uses an
internationally accepted ATM system like Plus or Cirrus (check the back of the
ATM card you have now if you don't know what I'm talking about), and send the
card to the Philippines. The person in the Philippines can then use the ATM
card to withdraw funds at an ATM in his/her community.
Pros: Almost instant, though
sometimes it will be a day or more before deposits are available for
withdrawal. Relatively cheap compared to wiring fees. You can set up a
withdrawal schedule so that there's no need for you to call the Philippines and
convey transfer numbers, etc.
Cons: It's not free; you'll be
charged international ATM fees, which range from $1.50 up. There are
occasionally reports of ATM fraud in the Philippines, and it is possible (though
not likely) that a bank could screw up and disburse more money than you put in
the account. You have to get the ATM card safely to the Philippines. If not in
person, I suggest using a secure service like FedEx or DHL (NOT the post
office!). Obviously, you should not mail the PIN with the ATM card - convey the
PIN by telephone once the card arrives safely in the Philippines.
Visa “Buxx”
(https://www.visabuxx.com)
Here's a rather creative way
to send money suggested to me by another forum visitor. Visa has created a
program that is intended to teach teenagers how to responsibly use credit
cards. If you enroll in this program, you as the “parent” can order a card for
your “teenager” that looks like a credit card (it even bears the Visa logo).
Your teenager can use it wherever Visa is accepted, including almost every ATM
in the world. You, as the parent, add funds to the card online, by transferring
funds from your bank account or a credit card. In this way, you determine the
amount of money the person holding the card can withdraw/use. Sort of like a
debit card, but without a bank acting as middleman.
Pros: Inexpensive (rates
depend on the bank that issues the visabuxx card – but one user of this method
states there's a $1 charge plus 1% of total withdrawn). Card can be immediately
deactivated, online, if you're notified that it's been stolen or lost. You can
also “suspend” the card online, as often as you like, and “reactivate” it later,
which allows you to more closely manage your money.
Cons: Technically, this
program is for American “teenagers” and not for your 60 year old mother-in-law
in the Philippines. But who's to say you don't have a young niece in the
Philippines who is like a daughter to you? Or perhaps you have a daughter who
is traveling to the Philippines to attend school there, or for missionary
work…? Note that you will have to provide the last 4 digits of your
“teenager's” social security number for identity purposes…
GC Philippines(www.gcphilippines.com)
- Gifts
Richard C. suggests this site
for anyone considering sending a gift to someone in the Philippines. "...www.gcphilippines.com
has proved to be a quick and reliable means of getting gifts etc to the
recipient in the Philippines. They provide vouchers for department stores like
Robinsons, National book shop, pay as you go phone cards for smart and globe
networks as well as shoes and clothing. My last order was delivered within 24
hours and their charge only 150 peso."
Credit Card
This approach is similar to
the "Standard ATM method" mentioned above, except that you give the person in
the Philippines a credit card instead of an ATM card. The pros and cons are
similar, though credit cards may carry more inherent risk, especially if you
have a high credit limit. Karsten G. adds the following: "As far as I can tell,
the person using the card in the Phillipines (sic) doesn't even pay a fee at the
ATM terminal. I've never paid a cash advance fee to my credit union. I tell
her to get P10,000, and that is what the ATM gives her, and I get no special
charges on my credit card statement. I follow it all from my online banking, so
I can see immediately when she gets the money."
Note that while Karsten is not
paying fees, you should always check with your card issuer to see if any fees
apply to your card in a similar circumstance. Every card issuer has different
policies.