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Remittance/Money Transfer to the Philippines

Discussion in 'Banking - Investing - Finances' started by Rye83, Jun 9, 2016.

  1. Dave & Imp

    Dave & Imp DI Forum Patron Highly Rated Poster Showcase Reviewer

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    Just some insight from someone who uses both Xoom and WU.
    Xoom I send to my dollar bank account here and pick up at my convenience and of coarse they (BDO) always has dollars.
    With WU it is best to go by branch you plan to pick up dollars in advance from and let them know you will be picking up a certain amount of dollars. The WU branch near Silliman college on Perdices start their day with $ 1,000 USD, but it seems to be able to get dollars in a couple of hours when given notice. The Branch in Robinson mall I was told should be able to get dollars faster because they are surrounded by banks.
     
  2. robert k

    robert k DI Forum Patron Highly Rated Poster Veteran Army

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    I would get an e-mail, usually in about 20 minutes saying I could pick up the money. Of course most places won't have $3k USD so it's going to be next day after you tell the branch you are going to use to lay in the money, or as has been suggested, tell them early and they have all day to get it.
     
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    Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    That is odd....right now I'm seeing $7.99 for using a bank account and the debit/credit card is much higher than paying with a debit/credit card (it almost always is more expensive to pay that way).

    Xoom USD to USD:
    Screenshot from 2016-08-03 12:16:20.png

    Xoom: USD to PHP:
    Screenshot from 2016-08-03 12:15:54.png

    Xoom's current exchange rate: 45.72 PHP.
    M. Lhuillier's current exchange rate is 46.53 PHP.
    The real current exchange rate is: 47.10 PHP.

    Total cost with Xoom USD to PHP:
    $1,004.99 = P47,335.03
    Xoom is only giving me P45.719 to the dollar so I'm losing:
    P47,335.03 - P45,719.50 = P1,615.53

    Total cost with Xoom USD to USD:
    $1,007.99 = P47,476.33
    Exchanging with M. Lhuillier gets me P46.53 to the dollar so I'm losing:
    P47,476.33 - P46,530.00 = P946.33

    So if I only sent myself $1k/month I would be losing:
    P1,615.53 - P946.33 = P669.20

    Unfortunately, I can't seem to live off just $1k/month here; I would say I send myself around $1,500 to $2,000 per month. So my monthly losses on letting Xoom do the exchange rate would be somewhere in the range of P1,000 to P1,350 (around $20 to $30).

    ......here's how I look at it:

    (I'll average the potential monthly losses to P1,200.)

    Half of the savings could go towards rum:
    Tanduay 750mL @ the local sari2x = P80
    P600 ÷ P80 = 7.5 bottles of rum

    The other half to coke (the kind that goes well with rum.... :whistling:)
    Coke 1.5L @ local sari2x = P55
    P600 ÷ P55 = 11 bottles of coke

    Which ends up giving you a nice 1:3 ratio of, well, rum:coke. Coincidence? FYI, that comes out to a a bit more than 125 rum:cokes per month (about 4 per day).

    Might be worth noting that I wrote all the above last night while putting those USD to USD transfer savings to good use, at least I think that was last night :cautious:.....wouldn't be surprised if the maths above is completely off the mark.
    A bit too risky for me, I would never let anyone know when or where I would be coming into possession of $3k USD in this country.
     
  4. robert k

    robert k DI Forum Patron Highly Rated Poster Veteran Army

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    A bit too risky for me, I would never let anyone know when or where I would be coming into possession of $3k USD in this country.[/QUOTE] WU will also transfer directly to the bank account of your choice. Of course you would need to set up a bank account and then withdraw the USD and take it somewhere to get it exchanged which would take some of the convenience away, but nothing is perfect. One could I suppose bank at the mall also.
     
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  5. Dave & Imp

    Dave & Imp DI Forum Patron Highly Rated Poster Showcase Reviewer

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    Pretty good calculations and budgeting, particularly if you are enjoying the transfer savings. . However if you really drink four rums and coke a day for a month, do you care what you pay for getting your money transferred as long as you can the drinks keep flowing? .... just saying :o o:

    (PS: just sent $1,000 USD to myself while writing this post, took about 6 minutes from going on line to get email verification of transfer completed at the $7.99 cost for dollar to dollar, bank to bank, so I guess I can go off and get a few rum & cokes my self. :wideyed: I will pick up the money at BDO in Robinson Mall and go to the exchange place in the food court to minimize my exchange costs on my way to by MC in the parking lot. This has been a simple routine for me. )
     
  6. AlwaysRt

    AlwaysRt DI Forum Patron Highly Rated Poster Blood Donor Veteran Air Force Marines

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    I did my ATM routine today. Withdrew p40,000 from the ATM at BPI (p20k twice). My ATM account is with Charles Schwab in the States because they refund ATM withdrawal fees. xe.com exchange rate 47.047, exchange rate I recived 47.05 (including the p400 fee reimbursement from Schwab), time to collect money - instant.
     
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  7. ChMacQueen

    ChMacQueen DI Forum Patron Highly Rated Poster Showcase Reviewer Veteran Army

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    You missed the part where I based it all off of $2k a month which I used as the likely average most of us live off of every month give or take. Ar $1k it doesn't sound to horrible but at $2k it starts feeling a bit of a pinch as the price doubles. However sending USD to PHP the price is $4.99 for $1k, $2k, or even $3k rather then USD to USD is another $7.99 for every $1k.
     
  8. birdwatch

    birdwatch DI Forum Adept

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    IMG_8133.JPG Got back to sending money for my savings again due to the high exchange rate. Cost to transfer ¥750 (6.79USD), transaction cost at ¥0
     
  9. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    The whole business of transferring funds has been made more difficult (for obvious reasons) and is sure to get far worse. Although I understand the reasons given, I get a little annoyed being told how much of MY OWN MONEY I can have. Also, remittance companies say they are following the law in their country but I wonder why is it that one remittance company will allow P450,000 and another will set up huge obstacles to sending P100,000. Others limit it to the amount they say the Philippine bank will accept (about P330,000 per month) but a bank manager told me that there is no upper limit and he would be delighted if I sent millions. I have remittance companies asking for copies of passport, driving licence (from home country), copies of bank statements (here the variation is 1 month with some and 3 months with others; scans from internet page or full statement showing all the edges) and even receipts for how the money is spent (trying to explain that the money is spent AFTER it is received seems to fall on deaf ears). And these companies make a big point on their webpages of stating "No documents required"; it could not be further from the truth! The world of cryptocurrency may be the future solution but there are huge fluctuations in values over a short period of time. Also, new crypocurrencies are being created all the time, so the 'supply and demand' equation seems to be skewed and this will affect values. My advice to those reading this before they come here or those returning home for a vacation is to visit your bank in your home country and sort out a system for International payments as they probably will want to see you in person. Also if you have any serious amounts of spare cash and do not intend to live in your home country then look into (i.e. NOT advice but suggestion to research) setting up a foreign bank account in a 'safe' country (e.g. OCBC in Singapore) and transfer your money there. We can all expect even more control of our money in the future as many governments are faced with insurmountable debt; the next big crash is always only one investment-idiot away. Governments generally do NOT want you to have your money; they want it all so they can continue to be reckless and to bail out their wealthy chums when the t*rds hit the fan.
     
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    Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    A lot of this has to do with what country the company is registered in. Countries have their own money laundering laws that these types of companies must follow. On top of these laws companies can also set their own fraud prevention policies. Online fraud is a major problem, especially for companies dealing with cash services...and especially to ones servicing extremely morally corrupt countries like the Philippines. They are constantly bombarded with scammers and hackers attempting to circumvent their security measure.

    For smaller remittances most of these companies only require you to link a credit/debit card and bank account. What they don't (sometime) tell you is that they have daily, weekly, monthly, bi-yearly and yearly sending limits. Usually the daily and monthly limits are clearly posted on their sites. They don't publicly publish other limitations as they don't want to give away their security measures. Example: If they told you up front that they only allow $10k USD to be sent every 6 months then scammers could send up to $9999.99 and then create a new account. I have personally hit these limits (I don't remember how much it was at the time) with Xoom and was forced to prove who I was, how much I get paid and sign an anti-money laundering agreement. They bumped my sending limit up to a good percentage of my yearly salary.

    There are probably lots of other triggers they have put in place. I'd guess that they also have a list of IP addresses that they get a lot of fraud attempts from. I suspect since a lot of the member IP addresses trip my spam/fraud triggers on this forum - because ISPs in the Philippines hide their users behind a proxy IP addresses (IPv4 is out of new IP addresses, or will be very soon. There isn't addresses enough to go around.) - that they are requiring you to prove who you are due to that.

    I also believe the Philippine Government is working with these remittance companies to identify/stop drug money. The government may be sharing all, or part, of their drug personality list with these companies. My Xoom account was locked several years ago because I sent money to a certain individual for repairs to one of my motorcycles. The guy was later arrested on drug charges (released months after without a conviction). I would normally chalk that up to coincidence but after several calls with Xoom trying to get my account unlocked I found out the guy was on some type of "blacklist". I have a strong suspicion that it was either due to alleged drug activity or for funneling money out of a certain country that had international sanctions in place.

    You may also want to read the fine print/terms a service of those remittance companies. Many have a section that says you are not allowed to send money to anyone (including yourself) for any type of service or product...some even state that their service is not to be used to send money to yourself. If you admit to doing anything against their terms of service they will likely blacklist you and your bank accounts/credit cards and not amount of begging will get a response from them.

    Do these companies share security information with their competition? I'm not sure....but I suspect there is likely some opensource fraud/spam database they all reference and contribute to and many of them have security IT personnel that visit many of the same forums/conventions to share ideas/best practices.

    Much of what is above is just a guess of how I think they do their security. They aren't going to tell you, me or anyone else what measures they take and why they sometimes require more documents and other times not.
     
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