When you're a Filipino expat working abroad, you know how important it is to send money home to your family. Whether it's for the local fiesta, your children's tuition fees, monthly utility bills, Christmas presents, or grocery allowance, it's important that they receive the cash as quickly as possible to avoid inconveniences.
This might seem like an easy problem to fix, and it is. The difficulty, though, doesn't lie with the problem, but with the solutions. There are dozens of ways to send money abroad, and Filipinos can get bogged down with the details. To make matters worse, companies frequently hide the limitations of their system.
If you want to cut through all the marketing gimmicks and prefer straightforward answers on the different ways to send money to the Philippines quickly and safely, then this guide is for you.
Method 1: Money Transfer Operators
One of the easiest ways to send money is through a money transfer operator. Simply put, you give the operator the exact amount that you want to send together with a few details of the recipient. Once the payment is approved (which takes seconds to minutes), the recipient can now withdraw the amount. It's as easy as that. A money transfer is definitely the fastest method available, bar none.
The major disadvantage of this system is the transaction cost and the number of branches. Many operators charge higher rates than others, sometimes reaching 10 to 20% of the amount. Furthermore, in order to get the money, the recipient has to physically visit the nearest operating branch in their vicinity. If you want to go this route, go for a money transfer company that has low fees and multiple international locations. It also helps if they allow online exchanges to eliminate the hassle of having to be present at the site. A good example of this is Ria Money Transfer, a tried-and-tested, budget-friendly money transfer operator that has partnerships with local giants Cebuana Lhuillier, Banco de Oro (BDO), and Mlhuillier. They're one of the few companies offering the benefits mentioned above and allow money transfers to the Philippines from anywhere in the world, so you're definitely in safe hands.
Method 2: Bank Transfers
A bank transfer is exactly what it sounds like: the sender deposits money into the receiver's savings or checking account. The major advantage of this method is safety. Because banks are often heavily screened by their country's governments, it's unlikely that you'll be cheated. Furthermore, the waiting period is instantaneous, if not very short, assuming you're transferring money within the same bank.
The major disadvantage of bank transfers occurs when the sender is using a different bank than the receiver. This happens a lot more often than you might think, considering that very few financial institutions have an international presence. In this case, the waiting period can stretch on for days, and the fees become a lot more expensive. To avoid this problem, make sure that you and your family are using the same banking company.
Method 3: Cheques
The beauty about sending a cheque is that the recipient can cash it anytime he wants for up to a year, and the sender can also set the date so that each cheque can't be redeemed until the right time. This prevents any impulse shopping that frequently happens when large sums of money are involved, especially when you're dealing with family members who may not have the required discipline to budget properly.
Of course, the main problem with cheques is the relatively unstable nature of the transaction. Unlike cash-on-hand, a cheque is just a piece of paper that can be rejected for something as trivial as a slight erasure. It is also prone to loss and theft. For this reason, cheques are best left for non-emergency needs like birthday gifts and extra allowances. It should not be used for monthly expenses or else you're risking your loved ones' well-being.
Method 4: PayPal
Established in 1998, PayPal is the new kid on the block. It has, however, grown up really fast and is now dominating the online transactions market. A wonderful thing about PayPal is that you can link it with practically any bank account in the world, and because its business model is purely digital, the sender doesn't have to leave the comfort of his home in order to send money to his family back in the Philippines. The waiting period is also relatively fast, taking two to four days at most.
Its main downside is the fee. PayPal earns profit by adjusting the conversion rate of the foreign exchange in its favor as well as adding an additional transaction charge. What's more, the receiver's bank often factors in its own dues as well, compounding the deductions from the final amount that your family will get. When you're an expat, you know that every cent counts, so you have to consider if the convenience is worth the cost.
Conclusion
These are the main ways to send money to the Philippines quickly and safely. Choose the one that fits your situation and plan accordingly. At the end of the day, though, it's only cash, so don't sweat it too much. After all, it's not in the Filipino spirit to prioritize the non-essentials. The gratitude that you earn from working in a foreign land away from your loved ones is what matters the most, and they're the reason why you get up every morning.
Always remember: family comes first.
