Money, banking and how to move money in the Philippines
Of course no travel without money, if you are foreigner to stay here for an extended journey or for good or just a tourist for a few weeks or months, a few essential tips and information may be helpful for all.
Philippine banking system
The Philippine banking system is surely far above average on a global comparison. A dozen or more larger banks participate in Internet and / or cellphone banking. Specially cellphone banking is wide spread. That means having a bank account with one of these banks - after enabling / activating cellphone banking with your branch - enables you to pay invoices via cellphone, to transfer money to another Philippine bank or to reload your cellphone directly form your bank account instead of using phone cards.
Some of these banks also participate in a widespread system of "Smart Money" debit card - a Master Card for domestic use.
Philippine banks are fast and efficient - most of the banks participating in modern banking features such as Internet banking and cellphone banking have branches in hundreds of provincial cities and even larger villages all over the Philippines. Access is easy and all bank employees far above average friendly and helpful !!
ATM - machines in the Philippines
ATM - machines are found in most banks - open 24/5,6,7 ... 5 or 6 or 7 days a week - because they DO RUN empty on a very frequent/regular basis !!! ;-) on weekends and local pay-days ... GET your money BEFORE Friday or after Monday noon !
BUT
a few things to keep in mind about ATM cards:
We find about 3 major ATM networks in the Philippines. Some ATM machines accept only local ATM cards form your Philippine bank - others accept foreign cards.
A TIP !
When you open a local bank account - you may want to select a bank using a DIFFERENT ATM network than your foreign credit card or ATM card !!
Why ?
ATM machines often are OFFLINE
or ..
EMPTY !! EVERY weekend and again by mid month and end month ( local pay day is mid AND end month for most employees ) ATM machines frequently or even regularly run EMPTY of bills.
So either way - if your ATM network is offline for ONE card - you may have a chance going to another ATM machine using a different ATM-network for your alternate card to save your holiday !!
Most ATM withdrawals are limited to 4000 PHP per withdrawal - you may repeat as many daily withdrawals as your bank allows according to your daily withdraw limit.
1 bank = Bank of the Philippine islands ( BPI ) - accepts withdrawals of 20'000 PHP in their major branches' ATM machines and 10'000 PHP in all their other branches' ATMs. A sister bank - the Bank of Philippine Islands - Family ( BPI Family ) has usually a withdrawal limit of PHP 10'000.- per withdrawal. - i.e. a typical European ATM card - a Eurocheque - card - having the Cirrus and Maestro symbol on their reverse side - usually offer a daily withdrawal limit of 50'000 PHP per day or approximately 1000 US $ / day.
Both a.m. mentioned banks - the BPI and the BPI Family are among the best for tourist ATM transactions - and are in most major provincial cities and tourist areas with one or several branches.
These 2 a.m. banks accept the following ATM cards:
- Cirrus
- Maestro
- Master Card
Other ATM Networks frequently available - usually all with the 4000 PHP withdrawal limit per transaction - accept VISA card and another FEW ATM machines American Express cards. Any other credit card or ATM card most likely brings you into cash shortage.
The MOST frequently used Credit Card and ATM cards are: Cirrus, Maestro and Master Card and a little less frequent VISA card.
Getting CASH with a Credit Card without ATM machines
Of course most banks offering ATM withdrawal for a.m. cards also give you cash during office hours - a valid passport or other accepted ID. Some of the banks have a minimum pay-out amount for NON-ATM handling.
While many other tourist centers also offer money change and cash services for a.m. credit cards - you will face usually a 7.5 % service charge added to your money request.
Paying with credit cards in the Philippines
You know it - i know it because i had once a credit card merchant account in Europe and know the typical credit card merchant contracts - all payment must be equal to cash payments ...
but
here in the Philippines it seems different
whenever you pay your Hotel, travel, tickets, restaurant bills, etc ..
MOST facilities will charge you an extra 7.5 % service charge when paying with any major credit card !
Typical credit cards accepted by tourist facilities are - in the priority of listing below:
- Master Card
- VISA
- American Express ( some places )
- Diners ( very few places )
Hence - getting cash with your credit card or ATM card and paying cash may be cheapest solution !!
Eurocheques in the Philippines
While you may find many facilities of money changers in Thailand and other NON-European countries accepting Eurocheques - HERE in the Philippines Eurocheques are entirely unknown in typical banks, money changers and hotels !
However your Eurocheque card usually is equipped with the accepted Cirrus and Maestro ATM symbol .. hopefully if you enabled this feature in advance with your European bank when applying for your card !
Smart Money debit card - a Philippine way to pay with plastic using Master Card network
As a careful reader of all previous posts - you may guess it - THIS card - the Smart Money - system - is linked to the Smart Cellphone network. It comes with a particular SIM pack that included Smart Money card. at ZERO extra cost.
A Smart Money card needs to be activated and can be reloaded at certain published facilities and counters OR reloaded using cellphone banking with your local bank participating in the Smart Money system.
Smart Money is a debit card accepted at:
- - all facilities having the Master Card symbol AND using an electronic terminal ( so far most of the tourist facilities use/have an electronic terminal - HOWEVER in remote areas / island environments there are resorts and hotels still using telephone processing for credit cards. As far as i know ONLY facilities using electronic terminals can process Smart Money cards !!
- - all facilities displaying the Smart Money symbol at their doors or counter
Other benefits of Smart Money are
- Smart Money cards can be used as regular ATM card to withdraw cash - remember its a debit card and YOU need to load it first ... - at all ATMs offering Master Card service - the service charge per withdrawal is approximately 10 PHP per transaction.
- Smart Money cards entitle you to an easy opening of a Smart Money savings account - even as a foreigner within less than an hour and only minimal formalities and usually NO account fees at all and only a minimal deposit/account balance of approximately 100 PHP - you may qualify for a local bank account. If you stay longer here this may offer you the benefits of transferring money from your foreign bank to your local account and to pay rent, telephone bills and other utilities via cellphone banking or ATM invoice payments.
- A major debit card without any formalities - open for all ! For local use only within the Philippines
- Reload your cellphone or your buddy's cellphone ( if your buddies have a Smart SIM - using Smart cellphone network in the Philippines !! ) with the use of your Smart Money card - via cellphone transaction in seconds / minutes
- Transfer money from your Smart Money card to another Smart Money card - for example your children's ... via cellphone transactions day and night in any emergency or whenever needed.
- Smart Money card gives you access to all those ATM machines using Master Card services - hence your local ATM card may use another ATM network being OFFLINE or that ATM machine is empty - and with an instant cellphone transaction you shift an amount to your Smart Money card to withdraw at another ATM network !
How to get money from your native country to the Philippines ?
If you are a long time visitor or retiree living here in the Philippines - you have several options:
Opening a local bank account and have your pension or amount regularly transferred to your local account. Such transactions of course may cost you typically for a European bank account to your local Philippine account a fee of 10-30 US $ or more depending on the amount and your overseas bank. For most such transactions usually 3 banks are involved and hence are charging fees.
your foreign bank
- an additional correspondence bank - usually in the USA
- your local Philippine bank
If you wish to use a local bank to receive your pension here by bank transfer from your native country - then you may select a Philippine bank with good international connections AND with a SWIFT code ( or better an IBAN code for your own local bank account for most direct possible electronic transfers and money routing ! Some do - some may be later. From European banks to a local bank - transfers usually may take 1-2 weeks if on both sides you have efficient banks.
If however you have a good relationship to your foreign native bank - and a typical ATM card such as Eurocheque card or VISA or Master Card - you may prefer to get your monthly pension via withdrawal from your local ATM machine. The fees most likely are lesser ( usually 3.5 EURO for each single ATM transaction, hence the need to select a network with high transaction limits ) - and of course instant pay out as opposed to 1 or 2 weeks delay when transferring from bank to bank.
Fastest way to move money from around the globe into Philippines - Western Union
IN any emergency or even on a regular basis while being here as a tourist with changing address and without bank account or without ATM card ... If you have friends at home - or relatives having access to your home account, then an instant money transfer via Western Union is the fastest way to shift money from one place to another. After your family or friends at home have made the payment at their local agent - they receive the Money Tracking Control Number ( MTCN ) some 9 digits - send it via eMail or phone call to you and you immediately get your money at any of the many thousands of Western Union agents here in the Philippines. Depending on the payment done abroad - the pay out may be in PHP or US $ - cash - net ! No fees deducted from you - as all fees are prepaid by the payee abroad. The Western Union fees are fixed - depending on the amount and usually very comparable to a regular international money transfer including ALL parties involved - from bank to bank !
The Philippines is a Western Union country !!!
Both for national as well as international money transfers. Its fast and most efficient for any instant help you need or want to give. Its the typical way to send money even to family members in remote provinces here on the islands. Every provincial city i have seen so far has one, several or many Western Union agents - either banks - or more efficient - the RCPI branches or one of the many Pawn shops in country.
While many of the banks offering Western Union services still are working the old fashioned way using FAX .. and needing up to many hours OR if FAX machine is down up to more than a day - almost all other a.m. Western Union agents have upgraded during the past 1-2 years to computerized terminals and all transactions in BOTH directions are true real time INSTANT transactions done in minutes world wide ! When you PAY - the second you get your receipt - you have the MTCN and that means that amount is instantly available worldwide for immediate pay out ! You send a MTCN by phone call or SMS and the recipient gets his cash during regular office hours - usually 6 or 7 days a week from early morning until early evening at ANY Western Union agent of his choice.
Travelers Cheques in the Philippines
!!! Travelers Cheques in the Philippines - means troubles for you. Travelers Cheques have never been really and widely accepted and you may run and travel to many places to find banks cashing Travelers Cheques - except in Metro Manila and a VERY few other major cities !! There may be ridiculous restrictions such as 500 US$ per months exchange limit and much more to be experienced - and of course Travelers Cheques also means lots of troubles and FEES for all recipients and many weeks or months delay for them to actually receive your payment.
While many Asian countries such as India or Thailand may easily accept Travelers Cheques at official exchange rate all over the country and even for payment of goods .. here in the Philippines more direct and more efficient payment methods are preferred. Cash in local currency ( PHP ) is the only true payment accepted day and night by all !
Fake money ..
Of course we have it here in the Philippines - fake US $ as well as fake PHP and other fakes as well. Beware where you get your money, When bringing foreign bills - typically US $, EURO ... be sure you have true bills, clean bills, bills without any damage or missing parts - even corners and bills without hand writing on it.
Final conclusion about banking and money transfers / handling in the Philippines
Paying bills on ATM machines or via cellphone banking is normal procedure and standard quality here with most Philippines banks even in provinces - in your country as well ??
In most other countries most likely NOT yet ... hence all money related services, transfers - national or international - IN or OUT of country - exchange, payments and withdrawals - by local nationals and / or foreigners - are all easy and efficiently done here in many pleasant ways. Philippines are an open country - open to foreigners and open to new technologies and high tech procedures. While some of these procedures sometimes may temporarily suffer form OFFLINE or electricity failures - for minutes or hours ... once used to it you get easily along.
Some time ago ( in the year 2001 ) - we had one of these really serious hurricanes fully hitting our city and neighborhood - we do have hurricanes every few weeks some where in our islands during rainy season ( May - November ), but most of them are in other areas or out in the sea - as a result of the damage done by that hurricane all local ATM banking was down for about 2-3 days and most shops and business in all city as well. Widespread damage to power-supply and bankers working with candles - with or without generators for minimal services ...
Be prepared and all is fine.
