How to Send Money from the USA to the Philippines

Almost half of the personal remittances to the Philippines come from the United States (40.5%). Many options are available to send money to the Philippines from the USA, but money transfer platforms are the most popular. Here are the top options and how they compare!

Money Transfer Services

Many international money transfer platforms include the Philippines among the delivery locations when sending from the United States. You may think there are some money transfer platforms available to send money to the Philippines but just Remitly, Ria Money Transfer, and WorldRemit are some money transfer platforms available, and you'll be impressed with the available choices.

The main advantages of MTPs to send money from the USA to the Philippines include the following:

• Simplicity. To send money you don't have to be a bank or tech expert since everything is straightforward.

• Fast. You can send money in a few clicks. Transfer speed varies, but most transactions are finalized in minutes or on the same day.

• Affordable. The actual transfer fees depend on the method and service, but MTPs generally have lower charges than the other alternatives to transfer money.

Money transfer platforms are secure and legal since they have all the necessary licenses to operate in the USA and the Philippines.

Wire Transfers

Digital technology accelerated things, so wire transfers are nowhere close to their earlier popularity. Not only are they slower than MTPs, but they are more expensive.

It's hard to see a point in using a pricier but slower service. Wire transfers could take a few business days to finalize, and don't forget the different time zones in the USA and the Philippines, as they could further prolong the delivery. If you have an MTP available, it's a smart decision to use it instead of these transactions.

Bank Account Transfers

One Network Bank (ONB), Metrobank, and other reputable Filipino banks all support interbank transfers from the United States. As for the US, you'll find most banks offer this option.

But the trick with international interbank transactions is they can take up to a few days. If you are sending PHPs, banks are famous for unfavorable rates. Both sides might charge a fee, resulting in the transfer being expensive for the sender. MTPs are a better option, especially since bank deposits are available with most money transfer platforms.

Challenger Banks

Challenger banks leverage digital technology to offer better services in this area than traditional banks. Tonik bank, ING, and CIMB are all available in the Philippines.

But these are small financial institutions, so their solvency is questionable. It's best to avoid them for large transactions. Challenger banks could have high fees and take days to finalize the transfer. The entire process is much smoother and simpler with money transfer platforms.

Mobile Apps and Payment Services

Alipay has proven to be a dominant option for contactless payments in the Philippines. With Google Pay and Apple Pay not available, there aren't many reputable options to send money from the USA to the Philippines with these services.

However, money transfer platforms have dedicated mobile apps that are free to download. You can use these on anything from iPhones and iPads to smartphones and tablets. They are safe, user-friendly, and suitable for sending funds to the Philippines on the go.

PayPal

Although it's been in the market since 1998, PayPal managed to keep its position among the e-payment leaders. It's a fast option to send money from the United States to the Philippines. But there are two downsides – high fees and unfavorable conversion rates when sending PHPs.

PayPal's fees go up to 5%, which is huge compared to international money transfer platforms. Although most transfers are almost instant with PayPal, MTPs are equally fast and more affordable, making them a better choice.

Money Transfers to a Pick-Up Location

This is an offline way of sending money from the USA to the Philippines. You need to visit a nearby agent of a particular service, which can be a bank branch, 7-Eleven store, etc.

Western Union has excellent coverage in both the United States and the destination country. But many users don't want to go through the hassle of heading to the store to send money to the Philippines from the USA. Also, the rates are often worse than when using an online MTP, making internet-based services a better option.

International Money Orders

USPS doesn't have the Philippines on the list of countries where you can send cash with international money orders. Western Union, for example, has more extensive coverage. With thousands of locations in the USA and the Philippines, WU is convenient for sending money internationally, as well as other MTPs.

What Do You Need to Send Money to the Philippines?

Sending money internationally requires similar documents regardless of the destination country. Here's what you need to deliver funds to the Philippines:

• A registered account with the MTP. It's necessary to verify your identity with a valid ID containing a photo. You only need to register once to send money from the USA to the Philippines as many times as you want, as long as it's within the specified limits.

• The sum required and payment method. Most money transfer platforms allow credit and debit cards, bank transfers, etc. Apart from the chosen method, you need to prepare the total amount, including applicable fees.

• Recipient's information. You'll need a name, phone number, and the receiver's address. It's necessary to specify a bank account for these transfer types, mobile numbers for airtime top-ups, etc.

• Proof of money origin. You can provide a salary check, property sale contract, or any other document that proves how you got the money. It's usually only necessary for large sums.

The Philippines is among the countries with the most delivery options when sending money from the United States. You can discuss with the receiver the method to transfer money that suits them best, but first, get to know the available options to transfer money to the Philippines from the USA below!

Location Pick Up

To transfer money to the Philippines from the USA, these require the recipient to head to the specified agent to collect the funds personally. Most banks support this option to transfer money, although big MTPs like Western Union might have branches available in big cities.

Receivers will need to collect the entire sum at once, meaning they'll be carrying cash. It's advisable to be cautious to avoid being a victim of theft.

Direct Bank Deposits

When choosing this option to transfer money to the Philippines from the USA, the receiver should provide a bank account to support this method. Some banks will even be ready to open an account for the recipient.

A notification should inform the receiver when the money is available. They can collect it via ATM or in a bank branch. It's possible to cash pick up the entire sum or in portions.

Cash Delivery

This is a convenient way to transfer money to the Philippines from the USA if the receiver is in a rural zone far from a bank or collection point. It's also great for recipients who aren't 100% mobile, so they'd appreciate the money arriving at their doorstep. The downside of using this option to transfer money to the Philippines is that cash deliveries are only available with limited money transfer services, and they often come with additional fees.

Mobile Deposit

GCash is among the available partners to send money from the USA to the Philippines using mobile money. When using this option to transfer money to the Philippines, the recipient needs to have this service active with their mobile network provider. GCash has over 70,000 merchants available throughout the Philippines, and the limit for monthly withdrawals is PHP 100,000.

What Do You Need to Receive Money in the Philippines?

As the sender, you might want to discuss with the recipient about the following documents they might need to collect money in the Philippines:

• Identify confirmation. The recipient will need a valid document issued by the Filipino government, and it should contain a photo.

• Sender's info. Some providers require giving them details about the sender, such as the name, country the money is sent from, etc.

• Transaction details. A transaction reference number is something the sender should provide. Other details might include the amount sent, time of sending, etc.

Remitly is a great choice from the sender's and receiver's perspectives. Senders will appreciate fast account creation and a user-friendly interface. Multiple delivery methods are available, ranging from bank deposits to cash collection and home delivery. The only consideration is the latter two might come with additional fees.

Advantages

• Guaranteed delivery times, or you get the fees back

• A special exchange rate for the first transfer

• Helpful customer support is available 24/7

Disadvantages

• The promotional rate is only available for the first USD 1,500

• Higher fees are applied when sending USD

3 Steps to Start Using the Provider to Transfer Money

1. Begin by visiting Remitly's official site for sending money to the Philippines.

2. Register an account and adjust the desired parameters.

3. Finalize the transfer.

Best Alternatives

• Western Union, Ria Money Transfer, Wise

WorldRemit works with reputable institutions in the Philippines, ranging from Metrobank and Villarica to PayMaya and PLDT. Cash delivery is great if sending money to a person who's in a rural zone or unable to collect the funds personally. After you transfer money, you can monitor transfers in real-time to be certain of the current transaction status.

Advantages

• 90% of all transfers are completed within 24 hours

• Choose from multiple delivery services

• Transparent pricing and no hidden fees

Disadvantages

• PHP conversion rates aren't as favorable as with some competitors

• The maximum amount per transaction is USD 5,000

3 Steps to Start Using the Provider

1. Head to the WorldRemit website and specify PHP or USD as the receiving currency.

2. Check the rates and choose a delivery method.

3. Register an account and finalize the transaction.

Best Alternatives

• TorFX, Western Union, Instarem

XE Money Transfer doesn't apply transaction fees when sending money from the United States to the Philippines. The money transfer company supports transferring large sums in a single transaction. But a clear pricing overview is only possible once you register, so pay attention and confirm you are okay with the terms.

Advantages

• Favorable PHP exchange rates

• An intuitive app to send money online via Android and iOS devices

• Bank and card deposits are usually completed on the same day

Disadvantages

• Debit and credit cards are unavailable for higher sums

• The direct debit transfer takes up to three business days to finalize

3 Steps to Start Using the Provider

1. Pick PHP as the receiving currency at the official XE website.

2. Sign up for an account to access the rates and pricing overview.

3. Finalize the transaction if you agree with the terms.

Best Alternatives

• Ria Money Transfer, TorFX, Western Union

Companies that provide money transfers offer impressive transaction speeds. Depending on the method, the money could be available almost instantly. It's worth noting it depends on the payment option used, but here are the MTPs that will process your transfer from the USA to the Philippines fastest!

Some money transfer platforms require choosing a fast transfer option to ensure they process the delivery in minutes, which can impose a higher fee. The money transfer platforms mentioned above have years of experience in processing international transfers, and you can rely on them to finalize your transaction quickly.

Regardless of the amount you send from the USA to the Philippines, it's smart to pick money transfer platforms that don't impose large fees on the transfer. Apart from the charges, pay attention to exchange rates if sending PHP. Here are the cheapest providers to send money online to the Philippines!

Some services might take 24 hours or longer to process your transaction. Others impose different fees depending on the payment method used. For example, it's common that debit and credit card deposits cost more than bank transfers. The above-mentioned platforms that offer money transfers try to keep their services affordable for all clients and options.

You can rest assured any service mentioned on this page is safe and legal to use. All providers have the necessary licenses and meet industry regulations. But some MTPs are aware that clients find safety to be the highest priority. Here are some providers that add more security options to their platforms!

If the money transfer company goes out of service, there's no need you'll lose money if the clients' funds are kept in separate accounts. Customers are often wary of fraud, so detailed guides and around-the-clock support provide peace of mind. It also helps to know when the MTP works with reputable institutions in the USA and the Philippines.

Apps have a twofold advantage – they allow sending money from a smartphone, tablet, or other portable devices, meaning you can transfer funds from any location. Here are the best apps if you plan to move money from the USA to the Philippines!

Most apps are actually mobile software solutions for existing money transfer platforms. Apps are free, and most have Android and iOS versions to support the majority of customers' devices. It's possible to use the existing credentials if you have an account with the chosen MTP.

The Philippines has a central bank with the official name Bangko Sentral ng Pilipinas (BSP). It's the main supervisory body in the country's financial industries. Its task is to monitor banks, money transfer platforms, and other financial services to ensure they comply with the relevant laws.

The local government also has the Department of Finance, which helps with revenue policies to keep the country's economy stable. The Philippines also has an Anti-money Laundering Council that monitors local and international transactions.

First, it's necessary to consider how much you are sending from the United States to the Philippines. If the sum exceeds USD 10,000 in a single fiscal year, you need to report it to the IRS. That includes completing certain forms, so it might be wise to consult a tax expert.

As for the Philippines, the local AML Council requires reporting all transactions that exceed PHP 400,000, which is roughly USD 7,600. You might need to provide additional documents to finalize the transaction.

It's worth noting money transfer platforms might have limitations, too. For example, WorldRemit has a USD 5,000 limit per transaction. Remitly imposes restrictions depending on your membership tier.

As commercial services, it's expected that money transfer platforms charge something for the transactions. The prices for sending money from the USA to the Philippines depend on the following factors:

• Payment method. The general rule is that card deposits are more expensive. Home delivery methods might have an additional fee, too.

• Exchange rate. All MTPs have rates lower than the mid-market level. But that can still vary, so compare the rates to find the best conversion option when sending PHP.

• Amount sent. It depends on the money transfer platforms policy. Some charge large transactions more, while others lower or exclude fees for higher sums.

There are usually no surprises in the reasons why people send money from the USA to the Philippines. One-time senders use MTPs to deliver money for birthday, wedding, and anniversary gifts. Frequent MTPs customers send money to the Philippines from the USA to support their families, pay tuition, etc.

Individual transactions are more common, and you use a personal account to execute them. But if you pay as a business, you need to register a separate account for that company. It's because an entirely different set of international regulations apply to business transactions.

Complying with relevant regulations, such as the anti-money laundering requirements, and getting valid licenses from US and Filipino authorities is a must for international MTPs. These services also must use encrypted transactions and protect user data and funds.

Top security measures include using multiple protection layers, safeguarded user accounts, etc. Many websites have teams investigating potential fraud and other issues 24/7.

If you are a Filipino resident working in the United States, you can register as an Overseas Filipino Worker. As an OFW, the local government won't charge any taxes when sending money to the Philippines.

From the receiver's perspective, there's no difference. There aren't any applicable taxes when they get money from the US or any other country.