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 youre residing in the US, there are tons of ways
of sending money to your home country. You can use wire transfer or even online mon-
ey 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
youre 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 youre 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 theres
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 For Transactions Below For Transactions Below

1,000 USD (Bank 1,000 USD (Credit Card) 1,000 USD (Debit Card)
Account)

Sent in Sent in Sent in Sent in Sent in Sent in

USD PHP USD PHP USD 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 youre using your bank account,
credit card or debit card. As a rule of thumb, its 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, ex-
pect 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 an-
other 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 For Transactions Below For Transactions Below

1,000 USD (Bank 1,000 USD (Credit Card) 1,000 USD (Debit Card)
Account)

Sent in Sent in Sent in Sent in Sent in Sent in

USD PHP USD PHP USD PHP

7.99 USD 4.99 USD 25.99 USD 7.99 USD 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, theres an obvious differ-
ence. 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 transac-
tions. But if youre 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, its not that perfect money transfer com-
pany 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.
Theres 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 ex-
change, so thats 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 For Transactions Below For Transactions Below

1,000 USD (Bank 1,000 USD (Credit Card) 1,000 USD (Debit Card)
Account)

Sent in Sent in Sent in Sent in Sent in Sent in

USD PHP USD PHP USD 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 youre 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 Re-
mitly are good but they don't disclose their conversion fees so thats 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 youd 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 moneys worth if you decide to go with this com-
pany.

The catch: TransferWise still has some downsides, its 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 trans-
actions, 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 For Transactions Below For Transactions Below

1,000 USD (Bank 1,000 USD (Credit Card) 1,000 USD (Debit Card)
Account)

Sent in Sent in Sent in Sent in Sent in Sent in

USD PHP USD PHP USD PHP

2.99 USD 2.99 USD 10 USD 10 USD 10 USD 10 USD

What do these mean: Whether youre 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 trans-
action. 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 West-
ern Union. So its 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, its 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 Money Transfer Companies (Converted PHP Rate)

Transaction
(Bank Ria Xoom Remitly TransferWis Western
Account) e Union

1,000 USD 49,920.92 49,650.00 54,000.00 50,633.22 48,835.71

to PHP PHP PHP PHP PHP PHP
(Estimate)

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 in-
stead, 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 com-
petitive rates for dollar-to-peso conversions. Western Union is suitable for dollar-to-dol-
lar transactions or if your source is other than your bank account.