Have you ever needed to transfer money overseas or known someone who needed to? Back in 2022, Nikkei Asia reported that roughly $31.4 billion in cash remittances had been sent to the country. This provided a solid foundation for a significant number of Filipinos that had been economically affected by the COVID-19 pandemic. But how does remittance work exactly?
If you are unsure how remittance works, we at Cebuana Lhuillier are here to elaborate on why it is a common practice among Filipinos. Moreover, we are here to detail the best way to transfer money from abroad when looking to remit money to your loved ones back to the Philippines.
Understanding the Remittance Industry
Remittance is best understood as the practice of sending money from one party to another, especially on an international level. Originating from the word “remit” or “send back,” the practice of remittance is commonly used among relatives to send money to each other. The rising number of Overseas Filipino Workers (OFWs) only further encouraged this practice.
As a result , the local remittance industry is centered around providing people with the cheapest way to send money to the Philippines. OFWs make up a significant number of the population. According to a recent Social Weather Station (SWS) survey, around 7% of Filipino households have OFWs abroad, of whom 75% remit money back home. This suggests that remittance is an important practice for many households, enabling the industry to thrive.
The Cost of Sending Money Internationally
Of course, remittance is a service, which means that it still has a cost. Remittance centers charge certain fees for making use of their services, meaning that when you remit, you must consider any additional expense. These fees can be placed within global exchange rates, additional charges, or simply through transfer fees in itself.
Here we list the various ways in which remittance can be charged internationally.
Transfer fees are among the most well-known methods by which remittance is charged. Often, remittance centers and companies will require a specific amount for making use of their service. When searching for the best international money transfer option, accounting for transfer fees is among the most important things to take note of.
Exchange Rate Markup
Aside from transfer fees, you might also find exchange rate markups impacting your remittance transfers. When converting currencies, the exchange rate can affect the overall remittance. These fees are often hidden in the conversion process, and customers cannot dictate the exchange rate cost.
Different money transfer operators (MTOs) or banks may have their own additional service charges and fees. Because of this, it is important to familiarize yourself with what your local banks and MTOs have to offer. In doing so, you can understand the different costs these services may have and compare which would be best for you.
How To Save When Sending Money
To ensure you are using the cheapest way to send money to the Philippines, we at Cebuana Lhuillier have some notes for you to keep in mind. With our tips and tricks, you can save more when you attempt to send money through remittance services. Budgeting your remittance transfers can help ascertain that you, and your relatives, receive the most out of the remittance.
Compare Foreign Exchange Rates
The most notable piece of advice to keep in mind is to compare foreign exchange rates. By doing so, you can narrow down what additional fees might be hidden when you convert your money. This allows you to better understand what your local MTO or bank may require in terms of charges and make an informed decision on what operator you rely on.
Avoid Multiple International Transfers
As much as possible, consider keeping your remittances to a minimum regularly. By making multiple international transfers in a short amount of time, you are effectively spending more money due to service charges and transfer fees. Pool your money and remit everything all at once to avoid incurring multiple charges.
Wait for Promos and Discounts
Of course, it is also recommended to wait for a better time to remit your money from abroad. You can save a lot by waiting for special promos and discounts provided by your local MTO. When finding the best way to transfer money, make use of different discounts and promotions to get the most ideal service rate.
Send Money Through Our Partners!
One of the most popular remittance centers you might have heard of would be Cebuana Lhuillier, especially our international remittance service. As a company dedicated to making breakthroughs in becoming the best financial partner for our clients, we ensure that our partners offer a variety of remittance service options for you to make use of. When looking at how to transfer money today, we provide numerous options that can help you send money back to your loved ones.
At Cebuana Lhuillier, we value empowering our clients to make the best financial choices for themselves. Our services are meant to provide you with the means to make well-informed decisions, especially in cases of financial services like remittances. Sending money has never been easier with Cebuana Lhuillier, your trustworthy remittance partner.
Transferring money can come with many different factors to consider, such as service costs and hidden fees. In addition, finding the cheapest way to send money back to the Philippines can be a difficult task. Because of this, it is important to be smart when it comes to choosing a money transfer operator to rely on for your remittance.
When you need to transfer money to the Philippines, you will find a hard time looking for options more appealing than what Cebuana Lhuillier offers. Our services are made to accommodate the needs of our clients, empowering them with the means to make strong financial choices. Don’t hesitate to remit to your family and loved ones by visiting any of Cebuana Lhuillier’s international partners today.