Money Remittance to the Philippines

by Gily Tenorio on August 21, 2010

in Personal Finance

Sending money to the Philippines is sometimes stressful especially for the first-time OFW. It’s hard to choose where to remit your money because you don’t know how or there’s limited options. Remittance to the Philippines became easier these days compared ten years ago. Many financial institutions like banks and remittance company offer wide range of services for remittance.

When I arrived here in Korea 3 years ago, I encountered the same problem. I don’t know where to send money to the Philippines. Although there are many banks here that I can used to remit money, my problem is the procedure and the expensive remittance fee. So at that time, I really search where is the best deal for remittance to Philippines.

Guide and tips really help if you’re really a first-timer. This article outlines some guides and tips on sending money to the Philippines. Just read the article and apply it if it is suitable in your location. One remittance service can be available in one country but may be not available in another country.

Basically, sending money anywhere in the world involves money transaction to banks or financial institutions. Thus, it is very important that you’re sure it is legitimate and not scam.

Where to Send Money to Philippines?

Sending money or remittance to Philippines from other country can be done in different ways. You can remit money by the following methods.

1. Bank to bank wire transfer

I think this way of sending money to Philippines is the most popular, safest and fastest way. I personally use this method for more than 3 years and I only encountered one problem but it was solved quickly. Basically, you apply for remittance to your bank where you are located. There is an application form for remittance where you will put all the details of your bank in the Philippines and the person who will receive the money.

This method is just like instructing your foreign bank to transfer a certain amount of money to your bank in the Philippines. It may take two days before you receive your money. In my case, it took only one day or less than 24 hours before I received my money through BPI. I know that money has been credited to my bank by checking my account through online banking. So it is also important to apply online banking when you apply for a bank account.

2. Western Union

Western Union is a financial services and communications company based in the United States. It has a number of divisions, with products such as person-to-person money transfer, money orders, and commercial services. As of May 27, 2010, the company has more than 410,000 Western Union agent locations in over 240 countries and territories.

It has many branches around the world so it is one of the most accessible ways to send money anywhere in the world. Normally, Western Union can be seen also in almost all banks.You need to pick up your money in Western Union branch near your place.

People without bank account usually use Western Union for remittance to the Philippines. This is a good thing because not all people have also access to banks. Even if you don’t have a bank account, you can still get the money from your relatives abroad.

The down side about Western Union is that it hasĀ  a higher remittance fee than banks.

3. Door-to-door money remittance

Door to door remittance is a classic way of sending money to Philippines. When I was a child, my father worked in Saudi and he send money to Philippines by this method. At that time, there are few banks and remittance company so the preferred way is by door to door.

4. PayPal

PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal serves as an electronic alternative to traditional paper methods such as checks and money orders. It is a subsidiary of eBay Inc.

PayPal is also a secure online payment when your purchasing anything in the Internet. You can also send money to Philippines via PayPal if you have created an account. You cannot send money or pay purchases if you don’t have a PayPal account.

There is a limit of money you can send or pay depending on the type of your account. If you don’t want to use your credit card every time you make a purchase online, PayPal is one option to use.

It has also higher fees when sending money than most banks charge. It’s the reason only few people use PayPal when remitting money to the Philippines.

5. Xoom

Xoom is a global money transfer service. Unlike PayPal, Xoom only has money transfer service, you can’t purchase online using Xoom.

In sending money to the Philippines, you can use Xoom and your relatives can pick up the money, withdraw money from bank deposit or by door-to-door service.

Xoom partnered with theseĀ  Philippine banks and money transfer companies such as M.Lhuillier, One Network Bank, MetroBank, SM Forex at SM Malls, Bando de Oro, Card Bank, Bangko Kabayan, Signed and Delivered, BPI, PNB, Cebuana Lhuillier and Globe Cash.

Sending money to the Philippines is very important to be safe and secured because it is your hard-earned money. You may remit money to Philippines by bank to bank wire transfer, door-to-door money transfer, Western Union, PayPal or Xoom.

Comments on this entry are closed.

Triple I Consulting Inc August 25, 2010 at 01:53

There are a lot of ways to transfer money from one country to another, especially now that we have various means of communications.

Gil August 25, 2010 at 03:06

Yeah that’s right! Thanks for dropping by.

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