Remittance is and will always be part of every OFW’s life. In fact, it is one of the penultimate reasons why you are working overseas since you want to provide a better life for your family. Many companies are offering remittance services since there are millions of migrant workers and the increasing demand for remittance services that will make transfer of money easier and more convenient.
Before you decide on what remittance company to employ, here are important factors you need to look into:
- Cost – Every remittance company charges a specific fee when transferring money. Ask about the service fee first since some companies charge higher than the others.
- Convenience – Can you send money easily? Will your loved ones receive the money in a place accessible to them?
- Reliability – Is the transfer of money safe?
- Speed – Can your family get the money immediately or will it still take a few days before they can withdraw it?
Given these factors, here are your options when sending money to your family:
Traditional Money Transfer Operators
You know them as MoneyGram or Western Union among many others. In fact, this has been the go-to remittance centers of many OFWs because of speed and convenient service. It is impossible to miss them since traditional cash agents are conveniently situated to make money transfer easier for you. Your family can also get the money within minutes up to one day, depending on the type of money transfer.
The issue with traditional money transfer operators is that they can be more expensive compared to other remittance channels. The quicker you want the transfer to be, the higher you have to pay for the service fee.
For instance, Western Union charges $18 for cash pick-up, which will be available within minutes. If you opt for bank transfer, you will be charged $8, but the recipient will get the money after a day. On the other hand, MoneyGram will charge almost $20 for cash pick-up, which the recipient will receive in minutes.
Nonetheless, traditional money transfer operators is ideal if any of the family member has no bank account, Paypal, or no access to the Internet.
Banks with Remittance Facilities
If you are looking for a secure and cost-effective way to send money back home, then banks are your best options. Major Philippine banks like BPI and BDO also have branches overseas to help facilitate bank transfers.
The procedure is simple. Simply deposit the money at the bank and your recipient can easily withdraw it. Plus, you don’t have to worry about the cost since rates are fixed regardless of how much you send or the manner of receiving the money.
Apparently, this will only work if you or any member in the family has a bank account. Otherwise, you won’t be able to enjoy the savings + remittance account rolled into one. Transfer cost is higher too, with BDO charging as much as $30 if you prefer door-to-door delivery.
Check out the banks with remittance services here.
Online Money Transfer Providers
You can’t physically go to cash transfer operators or banks to send money in the Philippines all the time due to time constraints. In that case, you might want to avail of online money transfer services for ease and convenience. All you need is you create an account, transfer money online, and your family can receive the money on the same day. Transfer cost is cheaper as well, with Xoom charging as low as $4.99 with your recipient receiving the money on the same day. Cash pick-up is available, but if you prefer more security, bank transfer service is also offered.
The issue with this type of remittance option is the security risk. Online fraud and malware attacks are rampant these days, which is why security measures are employed to minimize the risk.
There is no perfect remittance center since all three channels have their respective pros and cons. The best way to find out is to try each channel available while taking into consideration the fees charged. Consequently, don’t be afraid to ask about the fees. You want to send as much money as you can to your family back home and surely, spending a big chunk of money on costs is not part of the plan.