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Cheap ways to send money overseas

What's the most affordable way to send money overseas from the Philippines? Find out with this guide.

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By

Adrienne Fuller

&

Zak Killermann

Updated

Fact checked

Western Union and MoneyGram are known for their ability to send cash across the world in minutes, but you can save on fees and get a better exchange rate with an online transfer company — though you may have to wait a day for your funds to arrive.

Compare your options for sending money internationally

Use our interactive table to compare transfer fees, exchange rates, sending limits and more for sending funds overseas with our money transfer partners.

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Name Product Fastest Transfer Speed Fees (Pay by Bank Transfer) Offer
WorldRemit
OFFER
WorldRemit
Within minutes
N/A
Use promo code 3FREE and pay no fees on your first 3 transfers. Conditions apply.
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What are all the ways that I can send money overseas?

Sending money overseas can be done in a variety of ways. In general, your options include:

  • Bank transfers. Many major Philippine banks can safely wire your funds to countries around the world. Banks rely on existing links between banks and banking systems worldwide. Be aware that banks offer weaker exchange rates, have higher fees and fewer options to send and receive cash when compared to a money transfer service.
  • Digital money transfer services. These specialists offer more affordable transfers than banks do, allowing you to quickly and easily manage your transactions from home. With competitive exchange rates and lower fees, you can send funds from your bank account. Many also allow you to pay with a credit or debit card.
  • Providers with cash pickup. Trusted providers like Western Union, WorldRemit and MoneyGram offer the key advantage of giving your recipient fast access to the cash you send — sometimes within minutes. You can often pay online or at one of the thousands of agent locations worldwide. However, services typically cost more than an online transfer specialist.
  • PayPal transfers. PayPal offers transfers to more than 100 countries and supports multiple currencies. Its exchange rates are often better than those you’ll get from a bank, but not quite as strong as rates offered by money transfer companies. PayPal calculates its transfer fee as a percentage of the amount you’re sending — meaning it’s often better for sending smaller amounts of money.
  • Checks and money orders. Although not a quick option, you could send an international check overseas, obtained from your bank or the Philippine Postal Office. It costs a little more — you’ll have to purchase the check, and your recipient may be charged a fee by their own bank when cashed.

How do I send an overseas transfer with an online specialist?

Although the process differs by company, to send money overseas you’ll generally:

  1. Register for an account. Registration is almost always free. You’ll provide your full name, contact info and date of birth. Some providers also require proof of ID.
  2. Provide your recipient’s details. Specify who’s receiving the funds by providing their name and contact information. If you’re sending money for bank deposit, you’ll include the bank name, SWIFT code and your recipient’s account number.
  3. Indicate the details of your transaction. Enter how much money you’re sending and in which currency it will be received.
  4. Review the details of your transaction. For most providers, you’ll see a summary of your transfer showing the amount you’re sending, the exchange rate, any fee you’ll pay and the total your beneficiary will receive.
  5. Pay for your transfer. Payment methods vary by company but could include credit or debit card, bank account, cash or mobile wallet.
  6. Track your transaction. You should receive confirmation that includes a tracking number to monitor the progress of your transfer online or through an agent location.

You may also receive an email or text when your beneficiary has received your funds and the transaction is completed.

How can I save money when making a money transfer?

Fees vary widely depending on the provider you’re transferring with. Overall, providers make money on your transfer in two ways: by marking up the exchange rate and by charging you a transfer fee.

  • Compare exchange rates. Use your currency’s mid-market rate as a baseline to compare against the rates you’re offered. Focus on providers that offers the closest rates.
  • Send more money per transfer. Many providers discount transfer fees or waive them altogether when you send larger amounts.
  • Look for hidden fees. Avoid surprises by reading the fine print for fees that could apply to your transfer, including charges your recipient will need to pay.
  • Sniff out special offers. Keep an eye on promotions that offer, for example, no fees on your first transfer. While ideal for limited transfer needs, you could also end up with a new preferred service.
  • Shop around. The best way to save is by comparing rates, fees and transfer speeds of each provider, closely looking at their benefits and drawbacks.

The importance of a competitive exchange rate

Banks and other services are likely to add a little to the exchange rate, “padding the rate” to increase their profits. While a few cents may not sound like a lot on its own, when you multiply it by the ₱50,000 you plan on sending overseas, it can add up to a big difference in the amount ultimately received.

Specialised money transfer services typically offer rates that are closer to the mid-market rate.

Crunching the numbers: Sending ₱50,000 to the US

Let’s say you need to send ₱50,000 to family in the US. Here’s what you might face as far as fees and exchange rates as of 10 May 2020.

Digital money transfer serviceCash transferBank transfer
Fee₱0₱550US$30 + additional correspondent bank fees
Exchange rate1 PHP = 0.0198 USD1 PHP = 0.0193 USD1 PHP = 0.01976 USD
Transfer speed1-2 daysWithin an hour2-5 days
Amount receivedUSD 992USD 966USD 958
Verdict
  • Best value
  • Fastest
  • Slowest and most expensive

Skipping the bank will get US$34 more to your recipient, as the bank’s exchange rate is far weaker than other options.

How to get the best exchange rate

How transfer fees affect your total cost

Transfer fees can range from a few pesos to up to ₱500 or more, with some providers taking even more as a percentage on your total amount.

Depending on the provider, your transaction fee could be:

  • A flat fee on the transfer, no matter the amount you’re sending.
  • A tiered-fee structure — for instance, ₱500 for transactions under ₱10,000 or ₱10 for transactions under ₱1,000.
  • A fee calculated as a percentage of the total transfer amount.
  • ₱0 if you meet a fee-free threshold — the equivalent of US$5,000 or more with some providers.

Be wary of other fees that could apply. For example, a provider could charge your recipient a fee to cash a bank check or pick up cash in person.

Tools to save on an international transfer

There’s a lot riding on a competitive exchange rate and low fee. But depending on how much you’re sending, how soon your recipient needs it and rates at the time of transfer, you could save even more with the following tools.

  • Forward contracts. With this tool, you lock in a favorable exchange rate for a future transfer, avoiding unpredictable movements in the rate.
  • Limit orders. A limit order allows you to request a transfer that’s executed only when a specific rate is reached, at which point your provider locks it in.
  • Regular transfers. You may be able to shave a few pesos off an exchange rate or pay lower transfer fees by setting up a plan to automate more regular payments overseas.
  • Same-currency transfers. It can sometimes be cheaper to transfer US dollars to your recipient, allowing them to transfer these dollars into their own currency when received. Your recipient may be able to pay lower fees overall this way.

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