Best way to reduce money-transfer fees in the Philippines

Sending money regularly from one city to another in the Philippines through companies such as M Lhuillier, Cebuana Lhuillier, and Western Union usually costs at least 10% of the principal amount being sent. In addition, the process typically takes an average of 10 minutes, including filling out lengthy forms, lining up, and sending the reference code to the recipient. The main advantage of these companies is their extensive nationwide network of branches, with some operating 24 hours a day.

Smart Padala, a money transfer service offered by Smart Telecom, provides an alternative way to send money and charges only 1%, making it one of the most affordable options. However, its branches and authorized outlets can be difficult to locate and are not widely available in many provincial areas, which remains its main disadvantage.

Here is another way to send money that can help you save significantly on service fees, especially if you regularly send money to the same person.

First, ask the recipient to go to the nearest Banco de Oro (BDO) branch and open a Cash Card. He or she needs to bring two valid IDs and ₱120 to receive the Cash Card immediately. Once the card is issued, ask for the Cash Card number and deposit the amount you wish to send (up to a maximum of ₱10,000 per transaction) at any BDO branch.

After the deposit, inform the recipient that he or she can withdraw the money using the Cash Card at the nearest ATM. The withdrawal fee is only ₱2 at a BDO ATM, while other ATMs may charge ₱10. This means that sending ₱10,000 through a BDO Cash Card may cost only ₱2 to ₱10 in withdrawal fees—a significant amount of savings compared to traditional remittance services.

Another advantage of the BDO Cash Card is that it does not require a maintaining balance, unlike many regular ATM savings accounts.