OFW Remittance Tips

Choosing a safe and cost effective way to send money to Philippines is a major concern for every Overseas Filipino Worker (OFW). It is also a problem for the Philippine government since dollars lost due to leakages and high transaction costs mean less money for the domestic economy. Here are some helpful hints regarding money remittance.

* Never send cash or checks by regular mail. If you want a safer option to regular mail, go with registered mail or a courier service. These options, however, are very expensive.

* Because of the high cost of registered mail and courier services, banks and remittance companies are usually the best option for sending money home. Remember, however, to only use reputable banks and remittance companies.

* It is usually better to send money by electronic transfer.Sending checks can be an expensive and time-consuming process. Personal checks, for example, can be difficult to cash and sometimes take weeks to clear. In addition, fees are often subtracted from the amount you send.

* When wiring money from bank to bank, the transaction is usually cheaper and faster if both sender and recipient have accounts with the same bank. You should be aware, however, that most banks require both sender and recipient to keep minimum or maintaining balances.

* Banks do not have branches everywhere. Also, not all of them do door to door delivery. Because of this, specialized money transfer agents remain popular with OFWs especially those whose families live in areas which are not within the reach of traditional bank networks.

* When using money transfer agents, always make sure the recipient knows that money has been sent. Find a safe and secure way to communicate with each other. This limits the possibility of fraud or money loss.

* Use new technology to expand your options.Banks and remittance companies are now incorporating ATMs, credit cards, and even mobile phones into the remittance process. New technology can often speed up transactions while lowering costs.

* The transaction fee and the conversion rate that banks and remittance companies charge for converting foreign currency into Philippine Pesos is their means of making a profit. Take time to compare fees charged by reputable banks and remittance companies before you choose. he remittance process. New technology can often speed up transactions while lowering costs.

source: ofwguardian

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