Yesterday, John Grant published an article telling about his experience riding in a Taxi, and not being able to get P47 change at the end of the ride. Really, as it turned out, the driver had the change, but he was trying to play a game with John to get an enlarged tip. Really, though, getting change is serious business here in the Philippines, and it is often very difficult to do.
Dave left a comment on John’s article saying that he gets change from banks in the area where he lives, enough for the month’s worth of bills. Unfortunately, down here in Mindanao, and I suspect in much of the Philippines, often the banks do not have change, especially coins. Dave lives near Manila, and I suspect that the banks up there are better stocked with small bills than the banks out in the Provinces are.
The biggest denomination of Philippine Currency is the P1,000 bill. I hate them. I pretty much know which ATM machines give out the money in P1,000 bills, and I avoid those machines as much as I possibly can. Spending a P1,000 bill can be nearly impossible, even if you are buying something worth P800 or so. People in stores just don’t have change!
The other day, Feyma and I were at a local shopping area. Feyma saw a booth that was selling some really nice looking native scrapbooks. The pages were made out of banana leafs, I think. As I recall, the book was P230. Feyma pulled out a P1,000 note, and the lady looked shocked – no change, ma’am. So, Feyma switched to a P500 note – still no change. Frustrated, Feyma pulled out three P100 notes and gave them to the sales lady. Sorry, ma’am, I really have NO CHANGE! What could we do, the closest Feyma could come was P300. We went next door and had coffee, after which Feyma had the change to buy the scrapbook that she wanted. Frustrating, but this is just normal operation here.
Shortly after moving to the Philippines, I made a friendship with a British expat in Iligan City. He owned a small Donut shop. A place like that goes through a lot of change, since donuts are fairly low priced items. He particularly always needed a lot of coins to transact business. As I said earlier in the article, even going to the bank would not provide the change that he needed. My friend was quite smart, though. Do you know how he found a source of endless change? Every Monday morning, early, before the banks opened, he would go from Church to Church. Each Church collected money during their services on Sundays. By going there early Monday morning, he was able to buy the change from each Church before they could go to the bank! This turned into a virtually never ending supply of change, particularly coins. That was a very wise move on my friend’s part!
Can you imaging operating a small business and missing out on sales because you could not even produce P50 or P60 worth of change?
Morning Bob,
I think you hit the nail on the head by saying they are looking for a larger tip! And maybe just being difficult into the bargain I think. I must admit I found it rediculous when I was in Davao that the banks could not provide 20p notes and 100p notes in any abundance. I wasn't too fussed about coins as I seemed to have enough of those but the lesser notes were certainly sought after. I found the big supermarkets were a good place to get rid of the bigger notes since the bill was often approaching that magnitude anyway. They always seemed to have change. Good advice for the traveller, Bob.
Hi AussieLee- Thanks. Most certainly, those cab drivers are only looking for more of a tip!
Maayong Buntag Bob
This article made me laugh since every time I go the RP I use one packet for smaller bills and change and that pocket is always bulging since I am always s keeping track to make sure I have enough change. You will want to pay special attention to having change if you need to use the CR (restroom) in the malls since you will need 4 pesos to get toilet paper out of the machine. I always keep my larger bills separate since in the RP you are always paying for a ride or a coke or some small item and it is to easy to get mixed up with the large bills and I do not want to let others see the larger bills.
Hi Bob – A good place to obtain coins is a sari-sari store. Selling items to a local clientel that are often priced below P100, store operators seem to have an endless supply – especially if the store is located near an elementary school and sells candy! 😉
When starting construction of our house, we needed 3 coins for each reinforced column that was to be poured (local good luck superstition). We went across the street to our auntie's sari-sari, and got all the coins we needed. (Did I mention we live real close to an elementary school? 😀 )
I was in Manila waiting on my flight and I went to KFC, I pulled out a big bill for maybe 253p purchase and the woman asked me if I had the 3 pesos. It didn't occur to me then, why she did that. I noticed they did that with everyone so as to minimize giving out all the small coins. It was actually refreshing since here in the US the drive through restaurants often act as though they are confused if you give then say $2,02 for a $1.52 purchase. I break my big bills in the mall. grocery store, or even the fast food places. Jeepney drivers always seem to have some change also, well for a 100p note anyway. Maybe the RP central bank needs to mint more small bills and coins.
Hi Larry- Maayong Buntag pud, Larry. Yes… I do the exact same thing as you do. I keep larget bills in my wallet, and just keep the smaller bills loose in my pocket. Those P20's and P50's are constantly needed to pay anything from a tricycle to a street vendor for something. I keep them separated also because I worry that if they are mixed with large bills, I might accidentally drop one of those larger notes while digging through the pile.
Hi Paul- I had not thought of getting change from Sari Sari stores. The only thing I would add to what you say is that you would need to use a large, well trafficked Sari Sari, as the smaller ones would not generate much change. Of course, I think this goes hand in hand with your advice of using one near to a school… that would automatically be well trafficked! 😆
Hi Richard D- Good morning! Yes, it is very common to be asked for the "extra change" so that change made to the customer can just be larger notes, like what happened to you at KFC.
Interesting, Bob. I hadn't realized there was aproblem getting chnage even at the banks down there in the Southland. My bank is always suffering the endless noise of change counting machines grinding through peso after peso.
But there is a serious shortage of P20's and p50's around the country I believe … a lot od people think of it only as someone trying to wrangle a tip but as you point out it is a huge problem for businesses It's just one of those things you have to factor in about living in or especially having a business here.
You might make a business out of it in some way, with say an armored pushcart going through the mall and palenkge's 'selling' chage to store owners. You know running a business here people spend a huge amount of time in banks … and it's going to get especially busy now that Christmas season is upon us. The joy of the cash register "ka ching" 😉
Good tip about the church though, that's a source I certainly hadn't thought of tapping.
Hi Dave- The church is probably one of the most reliable and constant sources of small bills and coins, I'd guess. The guy who thought of that was a genius!
I wonder why small bills are in such short supply?
Our store opens at 7am… at 7.15 first customer shows up and buys a can of corned beef P19. Customer pulls out a P1,000 note… grrrrr. Since Venice and I operate the store like an american business I have a "Change Fund" and the register always starts out with P250 worth of change. Now that's "Change You Can Believe In" 😆
Hi BrSpiritus- When we lived in GenSan and had several businesses on the local economy there, we also operated more "American style" and made sure we always had change. That was one of the most difficult parts of running the place! 😆
Bob I had heard that the 20P note was the next one slated to convert to coinage or is that just rumours? I hope not, My poor coin purse is bulging as it is wil 1, 5, 10P coins!
Hi BrSpiritus- I haven't heard that, but I wouldn't doubt it. I wish that it would go the other way – more bills and less coins! Honestly, I never carry coins, I hate having all that change weighing me down and jingling in my pocket.
That's what makes the Philippines so different from America: we don't have Change.
Seriously, though, sellers/ drivers who try to trick me into believing they don't have change never get tips.
Cheers!
Yeah I miss the 5 and 10 peso notes. One of the first things I did when I came over here in 2007 was buy a change purse. I got so tired of giving the taxis extra tips because the coins kept falling out of my pocket.
Hi Migs- Exactly the same here. Those who try to fool me never get a tip.
Hi BrSpiritus- the change purse is something I never considered, but not a bad idea. I'll have to think about that a bit. Maybe even something that holds change and also could hold a bundle of small notes that could be used to pay small incidental charges and such. Thanks for the tip!
Hi Bob!
Another thing to watch for at least in Manila are metered cabs where the driver forgets to activate the meter and will insist on a huge amount for the fare. I always point to the meter and insist that the driver turns it on. We actually got out of a taxi in the middle of the street because the driver insisted on 400p for the trip from the airport to the hotel and refused to use the meter. Marie was very upset and swore that she hates all taxi drivers. The next driver we used was very nice so I teased her about her earlier comment. So far I have managed to avoid the penalty of being a sucker er I mean kano so far. Have a nice day!
Tom
Hi Tom Ramberg- You are jumping in too quick, my friend! 😆 Watch for my article tomorrow, it is on this very topic. I think I have a good solution for you on this one…
Sorry Bob!
I meant to respond to John Grant so I am off topic.
Hi Tom Ramberg- It's not really off-topic… it fits in the the "change" topic, which is kind of what John wrote about too! 😆
Hi Bob-Is this just a problem where you guys are or can I expect it in Manila?
HI Bob! I oh-so-love your topic. That is a good tip there, getting change from churches. We get change from gas stations as tricycle and jeepney drivers usually pay in small bills. Before the Bangko Sentral opened here in Gensan the paper bills were just worn to death. It got better now. Not sure if it's because Bangko Sentral opened here already.
In Manila if you get on a cab, the driver rounds off your fare to his favor. I'm glad in Davao drivers still give your change to the last peso.
Hi Dan Mihaliak- From what Dave said on his comment to John's post, it seems that it is a problem in Manila too, just not quite as bad.
Hi Bob – maybe I've been lucky and haven't had any bad incidences but I actually kind of enjoy bartering over the change, meter, etc. It seems that it's part of the game.
Rechie gets mad at me sometimes, because I tend to try to negotiate everywhere as I haven't quite figured out where it's not acceptable. Usually I'm just trying to get it back to pre-kano prices.
Hi Cathy- I hope you are doing well, and enjoying your time off work!
If you love this topic, just wait until tomorrow! You'll love that one. After reading my article tomorrow, think twice if you should let the driver "round up" on the fare! 😆
Hi Randy C- As Rechie tells you – there are indeed places where you are not really expected to barter. I enjoy doing that too in the places where it is appropriate.
Hi Bob,
We have a really good relationship with the several banks we deal with for our business. We never have change problems. We simply call the bank and tell them what we need, and the bank has it ready for us. Anything from coins to bills of different denominations. Perhaps this is a service provided to commercial and/or business accounts, but not to regular savings account holders?
The only time we have trouble is at election time. Before, you had a hard time getting P50 and P100 notes around election time. Now P50 notes are not a problem. Lately, P100 and P500 notes remain a problem at election time as politicians seem to need them in huge quantities for some reason or another . . .
Anyways, just an observation, not a judgment.
Interesting – I can't recall ever having a problem getting change in Gensan, but I haven't been since last year – is this new?
Exchanging with churches – I love people with imagination and will….
Bob,
I commented on John's article but want to get into the change thing.
With all the places we go, and the changing large bills, it is interesting at Agdao public market we never have that problem. Worse thing is they borrow from another stall.
Another thing I notice is the centavo coins. Most times if the total has in centavos the change, the clerks round it in your favor and pays a peso.
From many years in retail, it will be a nightmare with cash draws always short and, not like in america where it is illegal, here if a cash draw is short, the cashier has to make up the difference.
Hi Martin- Back in 2000, I lived in GenSan and that is when my change experiences took place. I had a business account at a major bank, and the bank manager was not only a close friend, but the Godparent of one of my children. I feel pretty certain that if they had the change I needed, it would have been given to me. In fact, whenever I went to the bank, while I was waiting they always served me either coffee or juice, whichever I wanted. So…. I did have a good relationship with the bank. 😆
One thing I must say is that this was 8 years ago, and I have no doubt that changes have taken place in that time.
Hi Gary- I think that this problem was worse, years ago. It is still bad, though. Try giving a P1,000 bill to a small store… you'll see what I am talking about! 😆
Hi Bruce- One thing that is also quite common in some places when making change is that they will round it against you, and give you a piece of candy instead. It is illegal to do so, but in some places it happens all the time.
My wife does that in the store and it drives me crazy. She has so much stuff priced at P2.50, 12.50, etc. I ask her are you going to keep 25 centimo coins in the drawer? No…. well then price it up or down to the next peso. Instead she gives the 50 centimo candies as change. What a way to run a business.
Hi Bob,
You're bang on with the tactic of using candies in place of coins. In the last few years the DTI really clamped down on this, and now establishments can really face stiff penalties for this practice. This is especially true for larger stores.
Another similar practice of technically shortchanging customers has been adding an additional charge for customers using credit cards. By law, the merchant is supposed to absorb the charge by the credit card companies. This is a cost of doing business and a way to get a sale when otherwise you may not get one from a buyer with good credit but without sufficient cash at the point of sale. The DTI has ruled that establishments should not charge extra for using a credit card, and currently is asking people to report such instances so they can help elliminate the practice.
Cheers!
Hi BrSpiritus- It seems to be a pretty widely accepted practice here… except by DTI. 😆
Hi Martin- Yeah, the credit card surcharge thing used to be OK to do here, under local laws and regulation. About 3 or 4 years ago the DTI instituted a regulation that made this illegal. Some vendors still try to get away with it, though. There is one computer store here in Davao that is always trying to tack on 7% to my purchase if I pay by card. Every time they do, I make a stink about it, and they reverse it. What a pain!
Cash is King in the Philippines! And Small Change is Queen! What more can you say?
Hi BrSpiritus- and those 50 centavo candies are the crown prince! 😆
I'm always trying to get change whenever I buy stuff. Often I have 1k or more in 100p bills or smaller sometimes 2k. Unfortunately my wife always takes the change whenever she goes out without me and when I go out were stopping at a gas station to get change for a 500p note for the taxi, women! But I still love her!
I first ran across the candy change in Elvie's home town of Calamba at a drug store. Since I cant have MSG and their was no label I just left it.
Ps. I'm in the US trying to get a resident visa now and Elvie has moved to Calamba. I will be moving there too of course once I get back home (Yes the Philippines is home now!). I really had planned to wait a couple more months to get things sorted there but I found out that I couldn't extend my tickets more than a year as I had been promised at purchase. Really causing problems as the clinic messed up our son's birth certificate and we didn't have a second signed copy.
The birth certificate is a whole story in itself. The owner refused to follow the law and allow me as father on the certificate unless we were married (I believe the law is over 5 years old can't imagine why she refused unless she was fishing for a bribe). We finally got married after a trip to Manila to get the paper from the embassy, that was the only reason we hadn't married already. I signed the paper for the birth certificate then she screwed up and typed it wrong. So we cant sort that out till I get back there to sign a new copy.
Hi Bob – As usual, your article is right on the money.(no pun intended) Although I find some of the postings here hilarious, regarding their situations, I'm sure it must be frustrating, to say the least, if you have to deal with it on a daily basis. Just one more very useful bit of information to digest before my first visit to the Phils., which by the way, I'm booking today. The weather here is 3 degrees, overcast, and blustery. Can't think of a better time to leave. If all goes well, I'll be over there in about a week, with, thanks to you Bob, Davao being my primary destination. Regarding money exchange, should I do that at the airport, or should I just use my ATM card and pull some money out that way?
Brovo Bob, great fun reading this page!! And thank all your writers for there inputs. Nori and I found a little way to keep some change around the house, Get the water jug and every evening through all our change in the jar. After a week or so, you'll have a little stash. Nori has her coin purse and I travel with a fannypac. Having a Fannypac gives me the pockets to have coins, small notes and also lg nots all sepate from each other. I lov it when ever i get into a situation where the "No change Sir" comes up ! I get into my coins and use as much of them as I can including and most of all the centavos!! then I go up from there!! The next time they see me they may reconcider, or the will get 200hunderd centovos for that 20 peso coke !You should have seen the look on the guys face when I handed him the coins, the lol lol was really on him…Hows the family? I hope well, Its getting cold here in Calif. 65 days and 40's nights…The leave are turning goldand red and we're due for some rain! The gas is down to $2.21 today and I hope down more on Monday as the price per barrel drops, finally. Cee ya Ed
Hi John H- That birth certificate doesn't sound like much fun! 😆 Good luck with making the final push toward a full move.
Hi Trevor Davies- Personally, I don't have to deal with change all that much any more, because I have my own vehicle and drive wherever I want or need to go, so I rarely ride in taxis these days, and it would seem that the taxi is the main place where you always need change. Sure, you need it in stores too, but that is usually less of a problem.
As far as your visit – I would recommend that you change a small amount of money at the airport, just so that you have cash for whatever is needed, then use the ATM after that.
When you are in Davao, let me know, so that we can get together for lunch or coffee!
Hi Ed O’Brien (O’Bie)- Paying in a bunch of tiny coins is a hilarious way to address the problem, and I bet the drivers don't appreciate it much. But, hey… they are the ones who had no change.
Everything is going well for us, I hope it is for you too!
Hi Bob, hmmm – I don't recall any problems with change. If I don't have any, they run over to the next establishment to get change. Maybe this happens only to foreigners?
Hi Ellen- In market stalls, or small stores, yes, they often go over to the next store for change. They even send people to go canvass all around to drum up enough change. But, in taxis it is different. Even having to go all around the market to come up with P50 change is just kind of funny, and also inconvenient, having to wait for it. It happens to me all the time. Feyma too! 😆
I've not had this issue either. At least not to the point you and Feyma have. Once we had just withdrawn from an ATM and had only 1000's and we took a taxi. The fare was like P65 and Jessie gave him the 1000 and told him it was all we had. He couldn't break it. Jessie then tried to dig it out of her purse and managed to find about half of it but offered to go get change. He told her to forget it, took the change and that was it. I felt kind of bad about that, guys are not getting rich doing that, they need to be paid. We do make a point to keep change for tricycle drivers. Even at the BBQ near the Bay of Bogo we don't have any real problems paying for P300 meal using a P1000 bill.
Perhaps the problem is worse in Mindanao? Ellen do you live in Mindanao too?
Now several times, I've heard Jessie tell cabbies "she needs her change" most of it in Filipino, I recognize a word here or there. I see a some of what your talking about and others but not to the point were we can't buy something.
That scarp book sounds pretty cool. I know its usually a woman's thing but I think I'd like to do that. But I'd probably rather supervise it, the details of it might drive me nuts. 🙂
Hi Rusty- Don't take me wrong, I am not saying that this is a constant thing. It doesn't happen every time we try to buy something, but it happens regularly. At most BBQ type places like you mention, it would be highly unlikely to find one that could make P700 change like you mention, though.
Trevor,
From my own experience, I got about 8000 php at the earliest time possible ( at the airport ) just to cover myself for a few days. I am not sure where you are from , but even if you have a so called world recognized credit card like Visa, Mastercard, etc. it may or may not work in an ATM at your destination. I have made two visits now to Iligan City and I don't believe their ATM machines anywhere in that city are connected to the International Networks. I spent an entire day and none of them would work for me. I asked in many banks if they could give me a cash advance ( with proper ID ) . I got the run around from one bank to another and after several hours found there was only one bank in that city that could give me a cash advance from inside the bank. I had to supply them with a photocopy of the front of my credit card and Identification page of my passport. They could not make the photocopy I had to leave the bank, go to a photocopy shop and then return to the bank. Fortunately I have friends in Iligan City so I did not have to wait in a long line the second time I went back to the bank.
This was the only bank in the city that could issue a cash advance on a non-domestic major credit card. On my most recent visit the one and only " card swipe " terminal was not working and they told me I would have to wait a couple of days before they had it back in service. They advised me if I needed cash immediately to go to another city ( in this case an hour and a half away ) .
I would also suggest that if you find you need more cash, don't wait until you get very low or run out of cash.
I believe it cost money for a bank to have their ATM connected on international networks and if they do not do much tourist business they probably don't want to pay for that extra service. ATM's and services most likely vary depending on where you are going. If you are in a more tourist type area you may have better luck. My main point would be, just because you see the logo of your credit card on an ATM, does not guarantee you will be able to get cash if your card is issued in a foriegn country.
Another item that may make credit card transactions go smoothly is to notify the Security Dept of your credit card company the dates you will be in a foriegn country so if they see transactions comming through they will not put a stop on them or making you speak with a representative on the phone to clarify the transaction and where it is taking place.
Depending on where you bank where you live, some banks and financial institutions can get foriegn currency for you right where you live. I have done this myself in obtaining UK Pound Sterling when I have visited the UK. I was not able to do this however for Philippine Pesos.
It may cost a bit more in a service charge obtaining cash or cash exchange at an airport although for my own piece of mind it is well worth it for starters, as it may take time, and especially patience, to obtain more once you reach your destination.
That has been my experience.
Hello again Bob – As always your advise is duly noted and much appreciated. Lunch or coffee sounds great Bob. I look forward to meeting you and will keep you posted on my ETA. Many thanks!
Bob New York – Wow! What a wealth of information. You have no idea how much this has helped me. I live in western Canada, and although I've travelled all over the world, it's always a bit daunting to try to think of everything when visiting a new country for the first time, especially on short notice. Decided on Wednesday that I was going to the Phils. and with any luck, will be there by next Wednesday. This is why I love this website. The generosity of the people that contribute their knowledge and experiences here really is unbelievable. Kudos to everyone.
I always try to spend my bigger change… (500 or 1000php) in the bigger grocery/department stores… they always seem to have change… if not the next cashier will…and in most parts you get better prices….
most times I dont have a problem.. unless I try to buy something thats under 200p of course you get the looks and the the invariable "do you have smaller change sir??"
which I always answer no…
and ill always try to use the 200 and 100php bills to purchase something like a 1.5 liter of coke at the local sari sari store…for like 37php to make even more change…
making sure you have proper change before you leave the house to go on extended trips in this country should be a pre requisite… or your giving people the license to overcharge you….
Speaking of banks, I sent my wife a money wire about 20 days ago and it still hasn't gone through. I found that it has been in the Philippines since the 29th. I had Elvie check with the police there and they said it could take 15 days but it has been there longer than that now.
I was thinking of having my SSI payment sent directly there but if it takes over two weeks to get the money I will just keep a US bank. I can get it the day it goes in, just get it out of ATMs.
I bought travelers checks before I went there but they were Visa travelers checks and no one in the city would cash them. The only way to get the money there was to open a bank account and wait 25 days for them to clear. If you get travelers checks the only ones anyone there will take is American Express.
I also ran across a bank with the Visa symbol but wouldn't take my card in Oroqueta.
Hi Trevor Davies- Thank you!
Hi David- Very good ideas. I kind of make it a personal policy to always use the largest bill I can for any purchase, that helps keep a little change in my pocket.
Hi John H- Traveler's Checks, even American Express are extremely difficult to change here, and I always recommend to people to just forget about traveler's check altogether. ATM has always worked well for me, and I recommend that method highly.
Hi Bob – I was just wondering if the ATM's in the Phils. are anything like the infamous ATM's in Thailand where they sometimes have a habit of eating your card. If that's the case, I think I'd probably want to have the traveller's cheques for emergencies like that. However, I also try to make a habit of carrying an extra ATM card just in case one of those bloody machines experience hunger pangs.
Hi Trevor Davies- We have lived here for about 8 1/2 years now. We use the ATM multiple times per day (lots of ATM needs for business), and have never had a card eaten. I am sure it must happen, but it is not common, in my experience. Even if your card got eaten, traveler's checks would do you little good, if any.
Another inefficiency shown of a Government body in this case the Central Bank to make sure that all regional banks must have enough small changes in circulation so as not to inconvinence the traders and the general public.
Hi Fun- I'm not sure if it is inefficiency of the Govt or the Vendors themselves. Sometimes I feel that they are just lazy to get the change they need. Hard to say. Maybe a bit of inefficiency on each side?