Live in the Philippines

Live in the Philippines helps expats with visas, moving and other services regarding the Philippines.

Money Matters

Money Matters / by / 53 Comments

A pretty popular topic on this site concerns getting access to your money.  At least it is a very commonly asked question that I receive by e-mail.  People want to know how to access their money from overseas.

Some people have savings in a bank account, in some kind of investment account, or some other account holding their money.  Others have Social Security payments that are directly deposited into their foreign bank.  Still others are earning a salary or some form of payment from a non-Philippine company.  Whatever way people earn their money, they usually have questions about how to access those funds if they are living in the Philippines, or in some foreign country.  It’s not always easy, but it also is not rocket science either.  Let’s have a look at this issue today.

I got thinking about this topic more the other day when my friend Dave Starr and I were having a discussion.  I mentioned to Dave that I would be going to the Western Union office to pick up some money that Google had sent to me, my earnings from advertising on my websites for the month.  Now, Google offers payments through a number of methods.  For many, they have their Google earnings deposited directly into their US (or whatever country) bank account.  For me, I choose to have Google send my money via Western Union (it is a free service that Google offers, no Western Union fees to pay).  Dave asked me why I choose to use Western Union instead of direct deposit into my bank account.  Well, I have several reasons for that, but probably the main one is that I like to diversify my methods of accessing my money.

Over the years, I have used a number of different methods to gain access to my funds in the USA.  Some of those methods I still use, others I have decided were not the right way to go.  One thing I have learned, though, is that it is a good idea to spread things around a bit, and employ multiple methods of accessing your money.  Why?  Because sometimes one method or another will fail, and if you have established multiple methods of accessing your money, you will have the ability to obtain money if your primary method fails.  It’s just a good idea to diversify.

I remember about 10 or 11 years ago, not that long after I moved to the Philippines.  I had a pretty healthy amount of money in a bank account in the USA.  I went to the ATM machine here to get some money out, and access to my account was denied.  What?  Luckily, I had an account at another bank that I was able to use to get money to live on, but I was concerned as to why I was not being given access to my money in this first bank.  I went home and made a phone call to the States, only to find out that I no longer had an account with the bank!  They had sold off part of their bank to another bank, in a different state.  They had mailed me to let me know, and tell me how to access my account once the transfer to the new bank had taken place, but the mail had not made it’s way to the Philippines yet.  In fact, the new bank had sent me a new ATM card and such, but I just did not have it in my hands yet.  Once I got the mail and the ATM card, everything was OK, and I could access my money again, but if that account had been my only way of getting money, I would have been in big trouble.

I had another experience one time where my bank had tried to call me on the phone, but they had my old US number.  Because the phone number had been disconnected, they decided to freeze my account until they found out what was going on.  So, Feyma had gone to a store and tried to use our debit card to pay, and it was denied.  We quickly cleared the matter up when we called them, but it was embarrassing and also inconvenient to have the debit card declined like that.

All of these stories are meant to show you that you never know what might happen that will cut off access to your money abroad.  So, for that reason, I like to have multiple accounts with different access methods where I can get my hands on money if I need to.  It’s a smart thing to do.

So, I want to outline some of the ways that I access money, just to give you some ideas:

US Bank Account

I have a bank account with a bank in the United States.  I access this money primarily by using the ATM card to withdraw from local ATM machines here.  People are going to tell me… the ATM fees are high, foreign currency fees, etc.  But, I have that one covered.  You see, I have a bank account that does not charge me any ATM fees at all.  In fact, if I use the ATM machine of a different bank (which I always do, naturally, since I’m overseas) my US bank reimburses me for any fees that are charged to me.  Now, I know, a lot of you are going to ask me where you can get this account for yourself.  I’m sorry, my friends, but this particular account is no longer being offered, but I am grandfathered in since this is what was offered to me when I signed up for the account.  With my debit card on this account, I can access up to a daily limit of $2,000 per day through the ATM, and I cal also use the card for unlimited amounts for purchases.

Payoneer Debit Card

For much of my internet business earnings, I use a company called 2Checkout to process the credit card payments for me.  2Checkout has a deal with a company called “Payoneer.”  2Checkout, once per week, pays my weekly earnings to me through Payoneer.  Payoneer has a debit card which they issued to me.  Through my Payoneer debit card, I can access up to $1,000 per day and also use the card as a debit card to make purchases of up to $2,000.  I would say that the Payoneer card is our primary method of getting cash here in the Philippines.  Primarily, we use it at the ATM machine, but I use it to make some purchases as well.

Payoneer Virtual US Bank Account

In addition to my Payoneer Debit Card, I also have a “virtual US bank account” through Payoneer.  This is not something that anybody can get, but if you are a good customer with Payoneer, after a couple of years of doing business with them, they will offer you such an account.  Basically, it is just a US bank account that they set up for you.  It is quite convenient, and just gives me one more method of moving money.

Paypal

I also use Paypal rather extensively to collect money through my internet businesses, and also if somebody needs to send me cash to pay for some service I provide for them.  For these purposes, Paypal is probably my primary method of collecting payments.  Once I have the money in my Paypal account, I have several methods of getting to the funds.  Firstly, I have the Paypal account linked to my Philippine Checking account, which I have through Union Bank Philippines.  Also, I have the Paypal account linked to my Payoneer Virtual US Bank Account.  Additionally, I have Paypal linked to a Philippine Credit Card which is issued through Union Bank Philippines.  So, I have three different methods to access my Paypal funds.  By the way, for those who are interested, and will surely ask, my Paypal account is a Philippine Paypal account, which allows me to transfer funds to US sources or Philippine sources.

Western Union

As I mentioned earlier in the article, Google pays me for advertising on my various websites, and they send me the money once per month via Western Union.  Western Union has high fees, which is why Dave asked me why I use them.  However, in the case of payments for Google advertising, Google pays all of the fees, so that is not really a consideration for me.  Additionally, when people want to buy something from me, like eBooks or a gift item from my WowPhilippines store, if they don’t have a credit card, I usually ask them to send the money via Western Union.  Usually, I go to the Western Union office between 4 to 6 times per month to pick up funds that have been sent to me either by Google or a customer who does not have a credit card that I can charge.  Another reason I like to use Western Union is because I like the people at the WU office where I go, and they treat me well.  I’ve been going there multiple times per month for more than 5 years now,  I have developed a nice relationship with these folks.  So, doing business with them is a pleasure.

Other local methods

I use other local methods of getting funds too.  Probably the two that I use most are LBC and G-cash.  LBC is a Philippine courier company, and they also do cash transfers from person to person.  If somebody sends you cash through LBC, they can either deliver it to your door, or you can go pick up the cash at any LBC office in the Philippines.  Through our WowPhilippines business, we use LBC for all of our shipping needs, so the people there know me, and treat me well.  G-cash is a service of Globe Telecommunications where you can send cash from cellphone to cellphone for pickup at any Globe office.  I use these two methods if somebody in the Philippines needs to send me funds for some reason, which is not all that often, maybe a half dozen times per year or so.  Another local method of payment that I use is direct deposit into one of my Philippine Bank accounts, which is commonly done here.

So, there you have it.  It’s a long article, but I know a lot of people worry how to get ahold of their money in the Philippines, so I thought I’d share with you how I do it.  I hope I’ve offered some suggestions that you will find helpful.

Reader Interactions

Comments

  1. Wow, Bob, your timing is incredible. We’ll be back in Legazpi next week and high on the to-do list is setting up bank account(s) to transfer upcoming retirement funds. What are the reasons for having a Peso or Dollar account? I’ve read of both. I don’t make enough to worry about asset protection strategies. It’s always gone by the end of the month, anyway.

    • Hi Mike – The only difference between a dollar and a peso account is what currency is in the account. In other words, do you want to save money in dollars, or do you want to save money in pesos. I guess it all comes down to what you feel will happen with the exchange rates. If you think the dollar is going to lose value, then a peso account would be for you. If you think the dollar is poised for a comeback then you might want to keep your money in dollars as much as you can. Personally, I have both dollars and pesos.

  2. Two accounts are probably the way to go if Plan A works out. 6 months there and 6 months working here until full retirement. And during the month I can pretend I’m George Soros manipulating vast tens of dollars between banks.

  3. Bob:

    I finally dealt with this issue this week… Was actually going to write an article about it, but you beat me to it. With the new job, I was having difficulty getting the wire transfers into my Philippine accounts.

    My solution is that I went to Hong Kong. Hong Kong is one of the few remaining offshore banking centers that make money access easy for customers. This is due to the huge amount of trade and commerce that goes through there. I set up a “multi-currency” account that allows incoming transfers in any currency, converting it into dollars, pesos, whatever, at just a couple of basis points above Interbank rate. (Not free, but pretty close. The bank is Standard Chartered). I can pay my bills anywhere in the world by setting up a TT online… No need to go in person. They have an ATM card, too.

    SOME banks in Hong Kong will set up an account for non-resident foreigners (I checked all of the Filipino Banks there… None would. Think international bank). Some want a personal reference there, or a PO Box.)

    The biggest hurdle is that the IRS last year placed severe reporting restrictions on banks doing business with US passport holders. There is some banking secrecy remaining in Hong Kong, and many of the banks there (and other places) simply refuse to do business with Americans rather than be burdened by onerous reporting rules (and nearly every bank in the world does at least some business in the US… So Americans thinking they can hide money should get that idea out their head). The side effect of these rules is that many US expats have had trouble starting accounts. EU and other passports won’t face this problem.

    The account took all of 30 minutes to set up the account, with access immediately. Required docs were passport and a proof of residence SOMEWHERE (ACR or Driver’s license…even a utility bill). This may be a decent solution for people coming here on tourist visas who have trouble setting up accounts in the Philippines. Hong Kong is a short, cheap flight, and if you need to make a visa run anyway… You get my point.

    An extra benefit is that, since currencies are easily switched, some cushion against wide fluctuations in exchange rates can be leveraged (Though the HK$ is pegged to the US$)

    • Hi John – Thanks for sharing your experiences on money and banking. HK may well be a good solution. In fact, if you were thinking of writing an article, don’t let this article stop you! I am sure you would have some good info to share, and such an article would be most welcome.

  4. This one is for visitors / tourists / travelers. On my first visit to Philippines about 5 years ago, the place I visited, Iligan City, there were ATM’s all over the place but my ( Major brand name ) USA issued card would not work in any of them. It worked in a couple of ATMs in CDO at certain banks but not in Iligan. My USA issued card did work in Iligan at some of the stores, restaurants, and the hotel I stayed at.

    Fast forward a few years, I learned about Western Unions Pre-Paid Debit Card. You can ” load ” the card up to about $950 USD before leaving the USA for a fee of I think $4.50. If there are any other fees with this card it is not much and with any card there is usually some kind of fee when using the ATM of different banks.

    In my 2010 and 2011 visits to Iligan City I had 2 of those Western Union pre-pay cards as well as my regular ( name brand ) USA issued card. Those Western Union pre-pay cards worked in ATM’s where my ( name brand ) card would not work ! Another feature is , just in case these pre paid cards got lost or otherwise become missing the most anyone can get out of them is $950 USD.

    This is Not an advertisement for Western Union in any way but rather my own way of having a back-up to ” Get Cash ” while I am enjoying my vacations in Iligan City.

    On my 2010 and 2010 visits I finally found 2 ATM in this city that did take my ( name brand ) USA card and dispense cash. These machines were new since my first visits. These are operated by ” China Bank “. One machine in the Gaisano Mall near the side entrance from the parking area, Security guards are only a few feet away, the other at the front entrance of Mindanao Sanitarium Hospital accessable by the public.

    What does this have to do with ” Living in The Philippines ” ? I would think for many people it should start with a visit, preferably more than once.

  5. If the person pondering moving to the Philippines and will have there pension or SS direct deposit, if possible set up a HSBC acct and have it deposited there. You can make ATM withdraws through Metro Bank and PS Savings Bank without any charges.

    • Hi Dave – Good idea! One tip that I would add, or change, from what you said is to use the HSBC ATM instead of the others, because HSBC does not charge fees for ATM use, and the others do. Also, for SS, there are Philippine banks to which you can have your SS payment direct deposited as well. Thanks for sharing your thoughts.

      • My only concern with HSBC Bob is that there backing off consumer banking in favor of Corporate accts. They have sold off branches on the east coast, my acct is in California, don’t know what plans they have for the west coast branches.

        • Hi Dave – Maybe I was confused.. I thought you had recommended opening an account at HSBC?

          I believe they have 3 branches in the Philippines – one in Manila (maybe they have more than one in Manila, though), one in Cebu and one here in Davao.

          • Bob,
            I believe there are probably about 10 HSBC Branches in Metro Manila. Bob, can you transfer money on line from my US Bank Account (Bank of America) to an HSBC Account. I want to have my pension deposited in my US Acct and just transfer money as i need it. Thanks so much for your input and all the valuable info. Have a nice day.

      • Whoa!!! I say Whoa!! LOL Bob, which Philippine Bank can u have ur SS direct deposited into? Man I pay out the wazoo for ATM AND international transfer fees 3.00 +3%…I only have the atm dEBIT CARD ISSUED BY THE tREASURY DEPT… dIRECT eXPRESS….MAYBE U R FAMILAR WITH THEM? Oops sorry about the capitalization. I live in Davao also.and my checks are not big….less than a thousand bucks a month….and its tough I wou;ld say if someone stays here with less than 1200 a month. I WAS a member of another group….until….some of the guys that I guess THOUGHT they knew everything aboutg the Phils and were uniquely qualified to give expert advice….anyway, they told a new member of that group who had asked if he could live in the Phils on 500 bucks a month. and they told him sure u can….personally Bob I would like to know what province it is that a foreigner can live for 500 bucks a month….I will move there. I would definitely appreciate the name of some of the banks that will do Direct deposit on SS from the States and would I be able to contact SSA Manila to do the paperwork?

  6. While in the Philippines this past year, I opened savings accounts in both pesos and dollars at a Banco De Oro (BDO) office in Ilagan, Isabela. I will be able to transfer funds there through various US remittance methods, however I have yet to do so. These remittance methods are set up for Philippine Overseas Workers. I was also able to set up on-line access to the accounts so I can monitor them from here in Indianapolis. Banco De Oro also offers on-line bill paying services.
    In the future it may be handy if we are in a situation where my wife is there and I am here in the US. Note that these savings accounts pay a slightly higher interest rates than US bank savings accounts.

    While I was in the Philippines I often payed for our groceries etc. at the Savemore Mall in Illagan using my US Chase Bank Visa credit cards. Then I just paid them off using my standard US Chase Bank on-line bill-paying system. I could do that from anywhere including in the PI. My social security pension is still direct deposited to Chase Bank in the USA. My other pensions are direct deposited to a credit union, which I still use for various purposes, including transfers of funds to my son’s account there when he needs money, in Fort Wayne, Indiana.

    • Hello Larry – I have not banked at BDO, but I know people who do bank there, and have been very pleased with their service. I have Philippine bank accounts mostly with Union Bank, but also have one account with BPI, which is rarely used.

  7. Sounds like a good idea to have several sources of funds in case one fails Bob. Having various income streams, some locally sourced and some from overseas must make your tax affairs complicated though; I’m glad I’m not your accountant! 🙂

    • Hi Jim – Thankfully, it’s not as complicated as you might think. All of my businesses are US registered and based. I do not draw any income that originates from the Philippines, so that helps uncomplicate matters a bit.

  8. Hi Bob,

    Nilda and I use xoom to transfer money from our US bank to our bank in the Philippines because we have found it to be less expensive than other money transfer services. But you sure have a goldmine in that Western Union deal.

    Also, I see a credit card is not included in your options, only a debit card. We prefer credit cards over debit cards mainly because of the consumer protection they come with; but also because of rebates in the form of free airline tickets, discounts, and even cash back they offer. In your opinion, which is the best credit card to get in the Philippines?

    Rich

    • Hi Rich – Thanks for your comment. I have used Xoom before to transfer cash to the Philippines. If you live here, though, and are transferring cash from the USA to yourself here in the Philippines, Xoom is very picky about that, and they suspect some kind of fraud is going on. You won’t be able to do it many times before they start questioning you, and will likely reject your transaction.

      Regarding credit cards, actually I did include that in my mix. Take a look under my Paypal options. I said that I have my Paypal account tied to a credit card issued to me here in the Philippines.

      I can’t really recommend the right credit card here, because I have not researched it. I have one, but I did not look at the options and decide which was the best offer, I just took the one that was convenient to me.

  9. Hi Bob – I don’t have money problems but I do have communication problems with your web site. I cannot read the readers comments or post a reply. Is there still isues with your site?
    Regards.
    Jim.

  10. Hi Bob – I have just been able to read comments this morning but not yesterday. I posted a comment to Paul’s post last week but it never appeared.
    Regards.
    Jim.

  11. I have a problem now in this regards. Xoom has shut me off for reasons unexplained. Our banks web remit program has been shut down by the state of Ohio for not having a license to do business in the state of Ohio. I’ve been using Western Union but the fees are excessive. There’s no BDO in Calbayog. We have a MetroBank there but they only allow remittance in person from their offices and there isn’t an office closer than Chicago (5 hours driving). Same with LBC. There is Moneygram but they are only slightly less than Western Union.I’m really at a loss at this point. Anyone with any suggestions would be appreciated.

  12. Very nice article, Bob! Reminds me of one of those articles from early on with this site where many of the posts were about the nuts and bolts of moving to and living in the Philippines.

    • Thanks Tom. I have been trying to get more into the “how to” and “nuts and bolts” stuff as much as I can in the past month or two. It’s not easy to do, given that I think I’ve written about virtually every aspect of how to live here, but I’m giving it a shot! Thanks for noticing.

  13. I’ve been here about 7 months now with my fiance’ in Surigao del Norte, and personally, I just send money from my USA bank accounts to myself by Xoom. It’s only $5.99 per transaction up to $2999. So I get the money instantly and just have my fiance’ pick it up if I’m not with her when going to town.

    Also, I set up a Union Bank account in my fiance’s name and PayPal account for the services I perform online and I send money from PayPal to Union Bank and just use the Union Bank Eon card to withdraw pesos as needed.

    Took me some time to get things set up with my online services and PayPal payments to Union Bank after I arrived here…about a month. She and I also moved around a lot at first, trying to find a nice house with reasonable rent fees, so I really spent a lot of the cash on hand I came with those first two months.

    Now we are settled in a huge house, fully furnished that is only costing me 10,000 PHP a month (we really lucked out with this as this is a solid built American style home designed by a woman from California who stayed only about a year and then left the house to her husband – it has a master bathroom with sauna bath that is stunning).

    The bills cost lately about 7500 PHP a month, and I blow a lot of money on American food and wine, beer, etc….cable is only 360 PHP.

    Funny, I’ve been a loner all of my life, including no pets ever, and now I have me, my fiance’, two dogs, two cats and a pig. Oh, how life has changed! lol

  14. Bob,
    I’ve posted this question on another site and I have no doubt I’ll get some informative responses. I happened to run across this site while browsing and it appears to be relatively current. I hope you’re ok with me asking the same question here.
    I just found out about the Direct Express card. This is a MasterCard debit card that social security and other federal pensions can be directly deposited too. Supposedly you can withdraw funds at any MasterCard (Maestro, Cirrus) network ATM and even withdraw funds at a bank teller window that displays the MasterCard logo. It doesn’t require a bank account. I’ll be retiring at the end of January, 2013 and plan on moving to the Philippines in June or July of 2013. I’ll be receiving a federal pension as well as social security and would like to have them directly deposited to a Direct Express card if what I’ve heard is correct. Does anyone have any info on this?

    Thanks, Tighe

    • Hello Tighe – I am not familiar with the exact card that you are talking about, but there are literally hundreds of such cards. I even have one that was issued here in the Philippines, it is called an EON account, which is issued through Union Bank here.

      • Hi Bob,

        Query: Re Union Bank Transfer of Funds/Money to Paypal

        I have a VERIFIED EON Union Savings account at paypal.

        1. With that Union Bank Peso Savings Account in the Philippines, how can I transfer some funds to my paypal account to purchase goods in dollar currency.

        (note: I cant find the ADD MONEY option)

        2. What are other Bank in the Phil, which is a Debit card that can be use to pay in dollar currency via Paypal.

        Thanks a lot for your kind help.

        • Hi Cathy – Thanks for stopping by my site and leaving your questions.

          To be honest, I am kind of in the opposite situation as you are, because I don’t usually use my Paypal for shopping, rather for accepting payments for products and services that I sell. So, I really don’t know about using my EON account to fund Paypal, my knowledge is the opposite, using my EON account to remove funds from Paypal and put them in my wallet instead. 😉

          I know that Banco de Oro also has accounts that work with Paypal, you may want to check with them.

  15. Hi Bob,

    I have some questions regarding using the payoneer debit card for atm withdrawal.

    1. Which atm machines do you usually use when you withdraw? BPI, BDO or some other bank?
    2. How much is the limit per transaction?
    3. How much are the fees? I read in the payoneer official site that there is a $3.15 withdrawal fee and then another 3% fee relative to the amount?

    Hopefully you can answer my questions because I’ve been searching the net for any info regarding the use of payoneer here in the philippines and most of them are dated 3 or 4 years back. I’m reluctant in using payoneer because it seems like there are loads of withdrawal charges.

    Thank you

    • Hi Carl – Thanks for stopping by.

      1. I always make all ATM withdrawals at HSBC.
      2. The limit per transaction is P40,000
      3. I am not 100% sure of the exact fee, because it is not broken down on the receipt. I would have to assume that the fees listed on their site would be accurate.

      Good luck to you.

  16. I’ve been reading your website for some time. The info I have read here has been greatly appreciated. I especially liked the post regarding direct deposit of social security disability payments. I will be joining my fiance in Malaybaly City shortly. As I’m a city boy from New York it will be a big change. Chopping wood. Water from the well. But it’s cool. I can’t wait. Thank you so much Bob!

  17. Hi Bob……I’ve been reading many of your posts on the various sites you have relating to the Philippines for years now, this is the first time I’ve commented to you. Two years ago I found the girl of my dreams there through FilipinaCupid of which I know you’re very familiar with. We’re engaged and I’m going there soon to marry her. I was going to bring her back to the US immediately but now things have changed and I would like to stay there for probably the 3 year tourist limit. I’m disabled and collect my disability payments through direct deposit onto the Direct Express card. A couple of comments here talk about that card but the comments are from years ago. I was wondering if you since then you might have more current knowledge about using that card in the Philippines. I’ve heard ATM fees are 3% and $3.00. Do you know if that’s true or if there is a less expensive way to retrieve the money from that card? Would I be better off having a direct deposit set up with a Philippines bank? Or do you have the best scoop for receiving disability payments in the Philippines? I figured if anyone knows this info it’s you. Thanks so much for all your advice.

    • I forgot to say, three years ago you replied to a commenter that you weren’t familiar with the Direct Express card and that were hundreds out there like it. I was assuming that by now you probably are aware that the Direct Express card is different from all the other prepaid debit cards in that it is issued by the Federal Govt. and incurs no fees.

  18. Denny (and Bob): I have a Direct Express Debit Card. Social Security and my VA pension are Direct Deposit. For 3 months I’ve been using a BDO atm, and it costs me $14.65 for each 10,000 pesos ($200+) I withdraw. This includes 200 pesos atm fee, .90 cents from direct express, $3.00, and 3 percent of amount. Did lots of research before leaving the states, and intended to use BPI for teller withdrawals, only to be told “no money over the counter”. Am still looking for a better value, and would appreciate any insight. The good news with Direct Express is it’s accepted at most stores – Cebus’ Gaisano Pacific Mall being the only refusal so far. If someone has information regarding an easy process for changing my Direct Deposit to a Philippines bank, it would be much-appreciated. Thanks…Mike

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