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6 Important Things to Know When Sending Money to the Philippines

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As an overseas Filipino worker or OFW, sending money to your family in the Philippines would be something you have to do monthly.

This is something you have to do at least once a month, and sometimes, even more often, based on your loved ones’ needs.

Regardless of how often you send money to the Philippines, you would do well to know some important facts and tips about the entire process to get the most out of each transaction.

Being well-informed can also help ensure you can send money to your family in the Philippines safely and without any inconvenience on both your parts.

What to Know About Sending Remittances to the Philippines

Whether you’re sending money for the first time to the Philippines or have already been doing it regularly, make sure you know these handy facts and tips:

1.     There are different ways to send remittances.

You have various options to consider when sending money to the Philippines.

These are the most popular methods:

  • Money transfer

Several companies offer quick remittance services with different sending and receiving options. You can send money by visiting one of their branches or using their website or app.

The beneficiary can receive the amount through their bank, which they can withdraw using their debit card or over the counter.

  • Bank transfer

If you already have a bank account, you can send money using their website or app or visiting their branch. The amount will be transferred to your beneficiary’s local bank account from your personal account in your selected currency.

This is often the best option if you need to send a large amount of money.

  • Online money transfer

Online money transfer companies allow you to send money to your recipient quickly. You can do this by using their website or app.

  • Money order

Lastly, a money order is another option you can consider if you need to send a specific amount to your recipient. Under this method, the beneficiary receives the guaranteed sum of money which you pay beforehand at your bank or the post office. 

Money, bank, and online money transfers are the safest, fastest, and most reliable and convenient options you can consider for sending remittances to the Philippines.

2.     Your recipient has different ways of receiving your remittances.

There are various ways your recipient can receive the money you sent. This usually depends on the remittance method you choose and the option you and your recipient agree upon.

If your recipient has a bank account, they can receive the money directly through it, which they can then withdraw using their debit card or through bank teller withdrawal.

Another option is to have the beneficiary collect the money in person from an accredited money transfer service provider.

Make sure the recipient brings an ID and has the correct transaction or tracking number when collecting the remittance to avoid any inconvenience.

3.     The amount you send may vary.

Regardless of how often you send money to the Philippines, don’t expect your beneficiary to receive the same amount every time.

The amount your recipient will receive depends on the foreign exchange rate at the time you send money.

The exchange rate pertains to the value of a currency in relation to another. If you are based in the United Arab Emirates, you have to know how much in Philippine pesos is equal to one UAE dirham.

When sending money internationally, a high exchange rate is always preferable. In such situations, it means your money is equivalent to more units of another currency.

Currencies that benefit from high exchange rates are usually labeled as strong.

However, most banks and money transfer service companies use the mid-market rate.

Also called the interbank or middle rate, the mid-market rate is the median point between a currency’s bid and ask rates.

It is considered the real exchange rate since it is influenced by the current transactions in the foreign exchange market. It is often the best rate you can get.

4.     Transfer fees differ.

The fees you have to pay whenever you send money internationally also often vary. Some service providers charge a flat fee for certain amounts, while others set a percentage based on ranges.

Additionally, the charges can be higher depending on the transfer type and speed. For instance, real-time or instant cash pickups often cost more than bank transfers.

You can avoid getting blindsided by the low exchange rates and unexpected charges by knowing these details before sending money.

If you don’t need to send money urgently, do it when the exchange rates are high so the recipient can receive the optimum amount.

Lastly, find a service provider that doesn’t charge recipients fees when they claim the money you send them. Check the websites of your preferred companies to read the details about all transfer charges.

5.     Senders won’t be taxed in the Philippines.

Once you start sending money to the Philippines, you are considered an OFW and be exempt from paying income tax in your home country.

However, to enjoy this benefit, you have to register with the Philippine Overseas Employment Administration or POEA.

Additionally, you can avoid other taxes applicable to sending remittance, such as the documentary stamps tax, by obtaining these documents:

  • Overseas Employment Certificate
  • Overseas Workers Welfare Administration membership certificate
  • POEA electronic receipt

However, you will still be taxed in the country where you’re working and sending money from, if applicable.

6.     It’s crucial to time money transfers well.

Aside from sending money when the foreign exchange rate is high, you might want to consider other factors to avoid inconvenience and get the most from your transactions.

First, avoid sending remittances on weekends and holidays unless it is an emergency.

This is because bank, public, and local holidays can delay your transfer, causing you to lose out on high foreign exchange rates.

If the remittance center operates during weekends and holidays and you need to send money during these days, check beforehand if your beneficiary can still get it on the same day to take advantage of the foreign exchange rates.

Lastly, if you are working in the Middle East and other Muslim countries, keep in mind that weekends fall on Fridays and Saturdays. If you want to send money during these days, find out if your recipient can receive it on the same day as well.  When you know these facts and tips, you and your family can experience more benefits whenever you send money to the Philippines.