Yesterday, Rusty wrote an article about sending money to the Philippines by a number of different methods. He pretty much covered all of the money remittance services, so I won’t be going into that. However, a number of questions have already come up in the comments section of Rusty’s article that I want to address with my personal experiences. Having lived here in the Philippines for nearly 9 years now, and having most of my income process through my US bank account, I think I have seen a lot of different situations occur that will be of interest to any foreigner who has plans to live here in the Philippines.
The first thing that I want to look into is a comment that Tyleen made after reading Rusty’s article:
Can you tell me what would happen if suddenly your card didn’t work?
Demagnitized or eaten or ???
Where do you go for help??
I am thinking of using my CDN ATM card the same as you do on your stateside accts.
But what do I do if the card doesn’t work??
Well, this is indeed something that you should be concerned about. I have had situations where there have been problems accessing my money, and I will address a number of different issues and solutions that may be helpful to you.
In my opinion, the first thing you need to do is to set up multiple ways to access funds. Tyleen mentioned, what if her ATM card becomes demagnetized. Well, there are ways to fix this, but what if you need money right away? Why not set up more than one bank account in your home country, each with ATM access? For example, let’s say that you have an account at “First National Bank” and that you have your Social Security Funds deposited there monthly. Suddenly, the ATM machine in Manila eats your ATM card for your First National Bank account! You’re in trouble, right? Well, if, before leaving to live in the Philippines, you also set up a bank account at “Trust Bank” and kept funds there with ATM access, you have a lifeline while you are waiting for your new ATM card to reach you for the first account. Set up multiple funds sources, so that if one fails, you have alternatives.
Now, what happens if your card becomes damaged, stolen or inoperable by some other means? Well, it is really no different than if you were back home. Pick up the telephone and call the bank. Explain to them that your card has experienced a problem and that you need a replacement card. They will send you a new card, a new PIN number, etc. Keep in mind, though, that you are overseas and it might take a week, even two weeks before you receive this new card. In that case, having that alternate account in another bank will be really helpful to you.
Another thing that is important is that you need to tell your bank in your home country that you will be living in the Philippines. This is important for them to know, and it is something that they will know anyway. I mean, when they look at your ATM transactions, or Card purchases and they all show up in the Philippines, it will be obvious. If you do not tell them in advance, they may cancel out your card because they will suspect fraud – somebody might have stolen your card number and duplicated it in the Philippines. This happened to us at one point, and it was not fun. So, let your bank know!
Another thing that is very nice these days is that you can take care of so much of your banking and bill paying right on the Internet. It is convenient, but it can also lead to problems for you, I know that it did for me. You see, although I had informed my bank that I was living in the Philippines, after using the online banking, they would regularly lock my account. I would call the bank and ask why and they would say “because there are suspicious logins from the Philippines.” Well, I already told them that I lived here, so there should be nothing suspicious about it! But, they told me, “that is a different department, we did not know.” I would explain it and everything would be OK for 6 months or so, then they would shut down my online banking account again! Same problem, same solution, I just got tired of repeating it. Because of this, I now only access my US bank account through my proxy server, so that it looks like I am in the USA. I’ve been doing it this way for 5 years or so, and they have never again locked me out of my online banking!
Another tip, if you are planning to make use of the ATM network in the Philippines, if there are holidays getting near, start building a stash of cash! For example, during Christmas, and during the Holy Week (Easter), ATMs will run out of money regularly, and may be out of funds for a week or more before being refilled. So, in the weeks preceeding the holiday, start building up cash, so that you will be OK if the ATMs are all down. This is something that happens very regularly. Even if they are not out of cash, many times the ATMs will simply be “Off Line” and you can’t get your funds.
Another way to broaden your resources where you can access cash is to open up a Philippine Bank Account after you are living here. If you are here simply on a tourist visa, it can be difficult to open a bank account, but if you are a legal resident opening an account is simple. So, open a local bank account and put a little money in there to build up a stash, for any time that you cannot access your money in your home bank account.
If you can build up some kind of online business to bring in a few extra dollars, there are usually ways to get additional sources of money too. For example, for credit cards processed on my various online stores, I have some stores where the money goes into my US account, I have Paypal (which ends up in a Philippine account),and I have something called Payoneer, which is a MasterCard branded debit card where funds are deposited to. Be redundant as much as you possibly can!
OK, what about Paypal? If you are living in the Phlippines, you will need to close your US (or whatever country you are from) Paypal account (or leave it dormant), and open up a new account here in the Philippines. I have written a series of articles on my Virtual Earner Website on how to get a Paypal account set up and working in the Philippines:
Setting up a Paypal account in the Philippines
Transferring Money from Paypal to your EON Card
This series of articles should tell you everything that you need to know on how to get a working Paypal account in the Philippines. I hope that it will be useful for you if you intend to live here.
So, I hope that this article has helped clear up a few questions that you may have about getting your money while you are in the Philippines. My most important advice is that you should diversify your sources of accessing your money. If one of your cards is damaged, or something happens to one of your accounts, at least you would have backups!
Hi Bob – A most enlightening and helpful article (and links). Redundancy, and keeping track of each element of that redundancy, is of paramount importance. In the Phils, the old saw of "Don't put all your eggs in one basket" applies to just about every facet of life there (from accessing your money to coming home from the pelengke 😉 ).
An additional method we have deals with a money exchange business owned and operated by good friends. They will, for trusted balikbayans and expats, extend the courtesy of cashing a check drawn on a US bank account for the purpose of changing the dollars to pesos at their current rate without any additional charge or fee. Establishing friendships provide more benefits that just being invited to parties or being asked to serve as ninong/ninang.
One of the most important things you mention with regard to credit or ATM cards from US creditors is to inform them of your plan to use it in the Phils or your plan to move to the Phils. Some creditors will not extend credit beyond US territorial limits for extended periods of time. Some will cancel the credit card and demand payment in full. MOST IMPORTANT = check before the move or before using. No sense adding to the "culture shock" that you will experience in other facets of life.
Hi Paul – Sage advice coming from you too! I have a relationship with a local bank manager, and he will also cash a check on the spot for me if I need it. Normally, there is a 45 day waiting period, but in a pinch this fellow has given me access to the cash instantly. Yes, forging close friendships can lead to important perks that not being a trusted friend can bring along.
perks are important in the Philippines .I like them too ..yes Bob I have done all the above except the Canuck atm card .. don't depend one just one thing,most of the time it works except when you need it the most …Murphy's law – if you have a 50 – 50 chance of something bad happening 99 percent of the time it will 🙂 I like that one ….my last resort was western union in manila …money in minutes ……Phil n Jess
very informative Bob ! it answered several questions i had.
Hi Bob,
Thx so much for all of the info. My worst nightmare is being somewhere without access to my money.
I will print off this article and keep it for when I am ready to move
Tyleen
Hi Phil n Jess R. – Well said. I agree about your Murphy's Law analogy! It's spot on! 😆
Hi Brian – I'm glad that it was helpful!
Hi Bob, There's a lot of great information here. This might be a stupid question to you and most of you others'– I'm not good with computers at all, but I love to spend money on ebay. If I have a philippine paypal account can I pay for purchases from the states with it even if I'm here in the Philippines?
Also, to Phil of Phil n Jess– I don't know what I would have done in your situation in Manila with your ATM card! I give you credit for getting through it without kooking out!
Bob, That's good to know.As far as shipping goes, I noticed in a post on Rusty's site about Johnny Air Cargo which sounded kind of interesting–have you used this service in making US purchases to be delivered to the Philippines? What other options would you suggest?
I don't know if this has been mentioned already in the different posts talking about access to money but in some cases, ATM withdrawals incur charges when used outside the US or the originating country. I noticed however that if you are using a credit union bank account ATM, these charges are waived and you get a great exchange rate. I observed my ATM transactions during my trip to Manila last November and of the 3 cards I used – BofA and 2 credit union ATMs – only BofA charged me for using the ATM outside of the US. I don't know if it's just my credit unions but it helps to ask before you leave. Hope this helps.
Bob do you have a Paypal ATM card? Mine is still US based so it probably wont help me much if you do. I've not tried to use mine here. Paypal knows I'm here though, I asked if I could change my address and they told me no. Officially though I haven't moved, I'm only a tourist. LOL
The very first time I tried to use an ATM machine in The Philippines, it was the day after some kind of Holiday. Every ATM in the city was going on again, off again in 5 minute intervals with an explanation on the screen that the network was overloaded or something to that effect. There were lines of people standing and seated in all of the banks, there were lines of people at the ATM's even though they were aparantly not working. I waited in line for ont of these ATM's and when I realized they were in an on again off again cycle at 5 nimute interval, I waited for this one to come back on. I thought about " what if the system goes off again and it keeps my card ".
While I was waiting for the next 5 minute " on " cycle to begin, I started mubling in frustration and then all I could do is start laughing hysterically as I commented to one of my Filipino friends, " This reminds me of playing the slot machines in Las Vegas ! " I thought about it for a few more seconds and then said " This could be even better than Vegas, " Las Mindanao " ! I mean it was like a gamble to see if you could get money out of an ATM even using your own card and PIN , without the machine going into another " off " cycle and possibly keeping your card.
At least this was one time I was able to turn frustration into a good laugh which I still get a chuckle from every time I think about it. I had never seen anything like that before.
Thanks Bob for the information. As you know I am back in the US now and I had the same question about what happens if my ATM/Debit card did not work or was eaten by the machine, luckily while I was in the Phil for those 6 months, nothing happened, however before I left for the Phil I set up a remittance account through my bank, Wells Fargo and BPI (Bank of the Philippine Islands), doing it this way means I had to put my best friend of 22 years on my account so that he could be the one to send it from the US as I was not able to open my own account in the Phil… yet. I called my bank (Wells Fargo) and asked them if I could have additonal ATM cards for my one checking account they said "no", however, they did see that I had two savings account and they could send me out a ATM card for each of those accounts, which in turn always me if my ATM/Check card were lost I could just do online banking and transfer money from my checking account to one of my savings accounts and then of course use the appropriate ATM card. So that allows me to have a total of 3 ATM cards at one bank. That is just what works for me, thought I would pass on the information. Again, thanks for all you do for us. Michael Severy
Thanks Bob. It is very informative and helpful indeed!
Hi Bob New York! I enjoyed your anecdote on "Las Mindanao". 🙂
Hi Michael Severy – I'm glad that you found a plan that works well for you. My only suggestion would be to have an account at a different bank too, because if any kind of issued come up with Wells Fargo, then you have another source.
To All:
Have any experiences with Xoom.com regarding sending funds?
My pardons Rusty – should read your article.
But perhaps your's was unique?