The Internet has changed our world a lot since it became widely available to the public about 15 years ago. In today’s world, we can go online and buy things or get information from anywhere in the world! Twenty years ago or more, if we wanted to buy something from a shop in Paris, we had to jump on a plane, go there and buy it. With some shops we could call on the phone, but that was largely the exception, most commerce was conducted in person. Getting information was just as bad too. Let’s say we needed to know something that could only be studied at the Smithsonian Institute in Washington D.C., we basically had to go there. Today, virtually every major museum in the world is Online! How can we go wrong?
There is a problem, if you are in the Philippines, though. You see, there is a lot of Online Fraud here in the Philippines. There are a lot of people here who are hackers, credit card thieves and such. It makes it harder for the rest of us in the Philippines to take full advantage of the wonders of the Internet.
One area where nearly all of us take advantage of the Internet is with our banking. These days, virtually every bank account in the world can be accessed over the Internet. We have to be very careful to keep the password secure and such so that we don’t allow access to unwanted people, but there are many things we can do online with our bank accounts. We can transfer money between accounts, check balances, pay our bills online, etc. And, we can do this from anywhere in the world where we happen to be, right? Well, not really! Yes, I accessed my bank account in the USA regularly when I was in the USA. However, when I moved to the Philippines and started using online banking from here, after a while, it wouldn’t work. I had notified my bank that I was now living in the Philippines, and they didn’t have a problem with that. However, if I would access my account from here, after a while they would shut down access. If I called them on the phone and asked if there was a problem, after getting sent to a few different people on the other end of the phone, finally somebody would come on and say “well, we notice that somebody in the Philippines keeps accessing your account.” Hmm… “well, I live in the Philippines, that is me accessing my account.” “Oh, OK, sir, we will restore access.” After a few months I’d go through the whole process again.
How about ordering something online? In my case it’s a nightmare! Why? Well, I log on from here in the Philippines, and place my order. I use my credit or debit card that is issued by a bank in the USA. I generally have the goods shipped to my address in the USA, and from there it is re-shipped to the Philippines. Most US businesses don’t ship overseas, or charge an arm and a leg for that, so it’s better to have it shipped to the States. Also, my address that is associated with the debit card is a US address, and it’s best to have the goods shipped to that address, or the store is suspicious. So, you jump through all these hoops, and then it still doesn’t work. Why? The online business can still see through your IP address that you are in the Philippines. The bells and whistles all start going off on their end – FRAUD – Philippines – Don’t accept. Etc. I have even called business and talked to them on the phone to explain what is going on, but 90% of them still won’t do business with me. What can I do?
Well, I did figure out a way to do business over the Internet without setting off those alarm bells. If you plan to live here, it’s important for you to know how to do it too, because if you don’t you will find that any kind of online business activity is going to be nearly impossible to do from here on a regular basis.
How do you do it? Check my column tomorrow, and I’ll explain how it can be done!
Hi Bob,
I am a Canadian with a Canadian bank account and credit card. I have lived in Austria (Europe) for the past 6 years. I have had no trouble with banking or credit cards because I have given Visa and my bank my Austrian address. I do not keep a Canadian address for anything.
I also have travelled now twice in the Philippines and never had a problem with my Visa card in any bank machine (as long as it had the "PLus" symbol on it).
The problem may not be because you live in the Philippines but because you have an American address.
My friend in Luzon is a Canadian also and has lived there for the past 10 years. Never a problem with banking or credit card. Only when making online orders will they not ship to the Philippines, but by using the "Contac us" on most sites, he explains where he lives and that he is willing to pay for "Registere mail" and the orders come through no problem.
Hi John – I'm glad that you have not had trouble. I have researched this quite extensively, though, and I know what I am saying. Before, I did not have a US address, after years of not being able to get the system working, though, I set up a US address and have a system that works now. Maybe Canadian banks are more lenient, I don't know. I know that when I have even called businesses in the USA and talked to them on the phone, they have flat out told me that they do not do business with anybody in the Philippines. Also, as an e-commerce businessman myself, I am a member of many forums where such issues are discussed, and I know the attitudes of other businessmen about this.
Thanks for your perspective, though, it's interesting to hear.
I have not had any of the same online credit card problems John has experienced except in one instance that I still can't resolve. I am an on-line merchant through my http://mlminsider.com website where I sell advertising and other revenuse generating vehicles.I am using Pay Pal to process orders. Since I created my Pay Pal account in the USA Pay Pal will only recognize access via a USA ISP . Everytime I try and log into Pay Pal from here (the Philippines) I am rejected despite having all the correct log-in info. They say that it is because the Philippines is a high fraud area and my account is a USA one. They said the only way to correct this is to open a brand new pay pal account from the Philippines and close the USA one. Seems ridiculous and very inconvenient. Fortunately I have a partner in the states and he sends me an excel spreadsheet of our sales each month.
Hi Corey – Yep, this is exactly the kind of thing I am talking about. I agree fully that it is ridiculous, but that's the way they do it! Check in tomorrow for a solution that you may be able to use on this.
I hope I am not spoiling the punch line but perhaps what you will be suggesting is the same as one way I have been told solves the problem. I have heard that a legitimate solution to these credit card problems is to utilize an Internet Service Provider from an acceptable Country ao that even with us physically being in the Philippines we can make it appear that we are operating from these SAFE countries thereby fooling the credit card company. When I investigated this I was overwhelmed by the number of companies that offerred this ISP service. I am hopeful in tomorrows update John will have done this research and will provide us with a list of resonably priced services. Aside from Credit Card issues there are many other Internet related things we can get to when we are seen to be using a computer from the Phiippines.
Hi Corey – I am a little confused, who is John? When you say that you hope John has done research, I am uncertain of who you are talking about.
It seems that you are talking about a different solution than I use. I have indeed thought of using a US based ISP, but the cost of dialing them up would be steep.
I've been using my US based credit cards overseas and/or using my US bank for from overseas for more than 10 years total. I've also worked with, advised and commiserated with fellow Americans in the Philippines or moving to the Philippines for more than 8 years.
One thing is true … you will have problems or you won't. Some banks will allow your online login, others will not … and the customer service people in the particular bank likely will not be able to say if there will be a problem or not. As the old Internet expression goes, YMMV.
I currently bank with an FCU (Federal Credit Union) associated with the US Dod and they have given no problem with logging in from the Philippines, or using my debit card here. This could continue for years or my card could be rejected tomorrow. You always need several methods.
I have a US-based Paypal account and I login routinely from the Philippines. Again, this could continue to work or it could change.
A US-based bank that many use here is NetBank.com … it's very popular with US expats and has free debit card transactions. When I looked them up just a moment ago I see that they have been acquired by another bank … so either they will still work fine, or they won't.
I'm very interested in Bob's upcoming solution … I think I know what it is … and I can say, for sure, have several means to do your business and exercise them all … as an example, my credit union turned off my debit card two years ago when I was in the States … because I hadn't used it in 90 days and they have an un-published security rule that turns off unused cards. test, retest, and keep track … it's the only semi-sure way.
Hi Dave – Exactly! Redundancy rules! Having multiple paths to the same destination is very important no matter where you live, but particularly important living in a place like the Philippines. Thanks for some good tips!
Sir Bob,
Good afternoon.
I'm not a foreigner but a local Dabawenyo who just happened to come along your website.
I am just curious if you might be interested to sort of network with me with regards to real estate properties in davao. I am a real estate broker though not yet licensed. We could split my commission from any closed transactions if you could refer me or any of the properties which I represent such as ALSONS PROPERTIES and DMC-Urban Property Developers Inc. ALSONS is the developer/owner of Ladislawa, Las Terrazas, Woodrigde and their newest project, Northcrest in Cabantian, Buhangin. DMC-Urban, on the other hand, is the owner/developer of the first-ever residential condo project near SM Davao City.
I hope this message of mine will merit your most favorable attention. Thank you and God bless.
Arnold E. Herradura
0906-8566850
Hi Arnold – I already have an arrangement with a local travel agent, and have been happy with her service. I will keep you in mind should I ever need somebody, though.