Cheapest Ways to Send Money to the Philippines From the US With the start of the festive Christmas season, OFWs are now saving up their money to send to loved ones in the Philippines. If you’re residing in the US, there are tons of ways of sending money to your home country. You can use wire transfer or even online money transfer companies to do so. But for those who just want to save money while still being able to send money to the Philippines, do you know which are your best options?
What makes a money transfer service cheap? Mainly, there are two things that we should be looking for to classify a money transfer service as cheap. First is the transaction fee, which is the incurred charge for every transaction you make. This transaction fee differs per company and also depends on the amount of money you're sending. Second is the conversion fee, also known as the foreign currency exchange rate. Say you’re sending money in dollars and you want it sent in Philippine pesos, there would be incurred conversion fees to the transaction. If these two fees are low, then we can say
that the money transfer service is cheap. This second feature though isn't usually given to clients nor explained in websites of money transfer companies.
Let's highlight your best options, shall we? Wire transfers are quite costly since they involve a more secured bank-to-bank transfer. If you’re looking for cheap ways of sending your money to the Philippines, you can't go wrong with money transfer companies or websites. They won't be as secure but there’s still that element of safety as long as you follow the protocols. Plus, the money can be transferred to the Philippines with a few minutes to a few days. 1. Ria What is it: Ria Money Transfer, or more simply Ria, started out as a small branch in the busy city of New York in 1987. Fast forward to today, it has become one of the largest money transfer companies in the world, operational in over 140 countries. They have also expanded their services, providing for money orders, bill payments and check cashing.
Transaction Costs for Ria (From US to Philippines) For Transactions Below 1,000 USD (Bank Account)
For Transactions Below 1,000 USD (Credit Card)
For Transactions Below 1,000 USD (Debit Card)
Sent in USD
Sent in PHP
Sent in USD
Sent in PHP
Sent in USD
Sent in PHP
3 USD
Free
40 USD
40 USD
10 USD
6 USD
What do these mean: So these values are taken from the official website of Ria itself. As you can see, the rates vary depending on whether you’re using your bank account, credit card or debit card. As a rule of thumb, it’s always better to use your bank account as the transaction fees are the lowest this way. Using that route, sending 1,000 USD in USD to the Philippines costs just 3 USD per transaction. And sending the same 1,000 USD in PHP costs nothing.
The catch: Ria seems like a good to be true money transfer company. Yes, it still comes with its own setbacks. If you choose to transfer the money using your bank account, expect it to arrive in the Philippines in around three to four days. Another downside is that you can only send 7,999 USD per month per account with Ria. If you need to send money to your relatives faster, you can opt for the expensive debit card option or the even more expensive credit card option. 2. Xoom What is it: Last 2015, online money transfer company PayPal, acquired Xoom, yet another big name in the same industry. Xoom isn't as expansive as Ria, only having its presence in around 50 countries which includes the Philippines. But when it comes to OFW remittance in the US, Xoom is one of the most well-known names. Its best feature is that it is affiliated with trusted local money transfer companies like Cebuana Lhuillier and M Lhuillier.
Transaction Costs for Xoom (From US to Philippines) For Transactions Below 1,000 USD (Bank Account)
For Transactions Below 1,000 USD (Credit Card)
Sent in USD
Sent in PHP
Sent in USD
Sent in PHP
7.99 USD
4.99 USD
25.99 USD 7.99 USD
For Transactions Below 1,000 USD (Debit Card) Sent in USD
Sent in PHP
25.99 USD
7.99 USD
What do these mean: Again, these values are taken from the official website of Xoom itself. If you would compare the fees between Ria and Xoom, there’s an obvious difference. If you intend to send money using your bank account, you have to pay a higher fee of 7.99 USD for dollar-to-dollar transactions or 4.99 USD for dollar-to-peso transactions. But if you’re planning on using your credit card, Xoom offers a competitive rate for that, as highlighted by the table. The catch: Xoom also has its disadvantages, it’s not that perfect money transfer company we have always dreamed of. Similarly, if you choose to transfer the money using
your bank account, expect it to arrive in the Philippines in around three to four days. There’s also a limit with the amount you can send every 30 days which is 6,000 USD. For many, Xoom also doesn't have competitive rates when it comes to currency exchange, so that’s another downside. 3. Remitly What is it: Remitly started out in the US then slowly expanded into the UK and Canada. In the beginning, Remitly started sending remittances to the Philippines only. Now, it has expanded its services into 9 more countries, including Mexico, Colombia and Ecuador. It is also partnered with Cebuana Lhuillier and M Lhuillier. Recently, it has affiliated with local money remittance company known as Globe GCash.
Transaction Costs for Remitly (From US to Philippines) For Transactions Below 1,000 USD (Bank Account)
For Transactions Below 1,000 USD (Credit Card)
For Transactions Below 1,000 USD (Debit Card)
Sent in USD
Sent in PHP
Sent in USD
Sent in PHP
Sent in USD
Sent in PHP
8.99 USD
Free
12.99 USD
3.99 USD
12.99 USD
3.99 USD
What do these mean: Do I need to say it? Yes, these values were again taken from the Remitly website. For bank account transactions below 1,000 USD that are to be sent in PHP, there are no fees incurred. But if you’re planning to send it on USD, think twice, as the rate is as high as 8.99 per transaction. The good news is that if you want to send via credit card or debit card, the fees are acceptable, especially if sent in PHP, at just 3.99 USD per transaction. The catch: If you used the economy service of Remitly, meaning the bank account source service, then expect your money to arrive in around three to five days. You have to spend more, meaning the source should be via credit or debit card, to have your money arrive within minutes in the Philippines. The rates for currency exchange of Remitly are good but they don't disclose their conversion fees so that’s another downside with this company.
4. TransferWise What is it: If you remember our guide before about the ways of sending money to the Philippines, then you’d have a background about TransferWise. Its main difference from the others in this guide is that it is a peer-to-peer online money transfer company. Such type of companies, aside from their website, has an application where you can send the money from as well.
Transaction Costs for TransferWise (From US to Philippines) For Transactions Below 1,000 USD (Bank Account) Sent in USD
Sent in PHP
Not Possible
9.90 USD (+/-)
What do these mean: As you can see, TransferWise only allows for USD to PHP transactions, unlike the other companies. If you are transferring 1,000 USD via your bank account, the transaction fee is at 9.90 USD. While this rate is quite high, don't run off just yet as TransferWise has one of the best, if not the best, currency exchange rates in the internet. So you are getting your money’s worth if you decide to go with this company. The catch: TransferWise still has some downsides, it’s inevitable. They do not have fixed fees if you decide to attach a credit or debit card to your account. So their levied fees weren't listed above. Such fees depend on the bank that you have, as they have stated in their website. Another downside is that you cannot send dollar-to-dollar transactions, which some clients do prefer.
5. Western Union What is it: Perhaps the most popular and largest money transfer company in the world is Western Union. Available in around 200 countries with over 500,000 branches, it is very easy to find this money transfer company. That is their unique selling point, you can easily transact a personal money transfer with them. Don't worry though, because in keeping up with this technology-driven world, Western Union also has a working web-
site that you can go to.
Transaction Costs for Western Union (From US to Philippines)
For Transactions Below 1,000 USD (Bank Account)
For Transactions Below 1,000 USD (Credit Card)
For Transactions Below 1,000 USD (Debit Card)
Sent in USD
Sent in PHP
Sent in USD
Sent in PHP
Sent in USD
Sent in PHP
2.99 USD
2.99 USD
10 USD
10 USD
10 USD
10 USD
What do these mean: Whether you’re sending money, at least those below 1,000 USD, in dollar or peso with a bank account source, you only need to pay 2.99 USD per transaction. If you want to source the funds with your credit or debit card, the incurred fees are around 10 USD per 1,000 USD transaction. The catch: Many clients complain about the non-competitive exchange rates of Western Union. So it’s best to just transfer money in USD to the Philippines and let your loved ones exchange the dollar to peso locally. Aside from this con, Western Union is a trusted money transfer company in the world. With many outlets, it’s a very reliable money transfer company that you can depend on.
We have covered the transaction fees, how about the conversion fees? As what have been mentioned above, currency exchange fees aren't usually shown or explained to clients. What we can do is gather information about the conversion rates of these companies. So if you're planning on doing a dollar-to-peso transaction, go to their
websites and try window shopping on the rates. That is, find out which company offers the highest dollar-to-peso conversion for your money.
Dollar-To-Peso Conversions for the Five Companies (From USD to PHP)
Sample Transaction (Bank Account)
Money Transfer Companies (Converted PHP Rate) Ria
Xoom
Remitly
TransferWis e
Western Union
1,000 USD to PHP
49,920.92 PHP
49,650.00 PHP
54,000.00 PHP (Estimate)
50,633.22 PHP
48,835.71 PHP
What do these mean: As you can see from the table above, we have highlighted the conversion rates of each company for 1,000 USD. All except Remitly have these rates showcased in their website. Remitly claims to have a conversion rate of 1 USD to 54 PHP right now, but their conversion fees are not yet included in that estimated above. So we can remove Remitly from this comparison to avoid biases. For the remaining four contenders, TransferWise offers the best conversion rate. For 1,000 USD, you have a converted rate of 50,633.22 PHP which is quite good. Ria is the next best option, as its conversion rate isn't that far from the former. Xoom and Western Union compete for the last places as their conversion rates aren't too competitive.
Still feeling confused? In a nutshell, always take note of the transaction fee and conversion fee of a money transfer company. If you can't find the latter, then take note of its conversion rate instead, like what we did above. If you want to send money in PHP, then TransferWise might be the best option for you. Despite their higher transaction fee, they have a low
conversion fee and a high dollar-to-peso conversion rate. Ria and Xoom also offer competitive rates for dollar-to-peso conversions. Western Union is suitable for dollar-to-dollar transactions or if your source is other than your bank account.