We live in a world of global trading and the internet is rapidly expanding, where international money transfers are becoming more common than they were back then. Enterprises can now easily hire people worldwide, trade goods and services online, and establish partnerships quickly with people living in different time zones. Not only has technology advanced sky high, it’s become a common thing with businesses outsourcing work to countries like the Philippines to transfer money on a daily basis.
Sending money to the Philippines or any other country has become (well, almost anyway) as simple as sending money within the United States of America.
A lot of American enterprises have found top virtual employees from the Philippines who were able to drive marketing, customer support, programming and other efforts on behalf of the company. These external and overseas workers need to be paid somehow, and thanks to a wide array of options, sending money to the Philippines is fast and easy. The only thing you have to consider is finding out what is the best fit for your business among all of the available choices.
However, you should know that some of the best options, PayPal for instance, are known to have very high fees; using PayPal can be as high as 8% on top of the transferred money. Therefore, you need to know that there are hidden fees present when using these money-sending options.
What Are Hidden Currency Conversion Fees?
It’s basically quite easy what they are. There’s a thing called a real currency exchange rate, which is considered to be the rate at which banks would exchange money. Then there’s the rate that you get when you transfer the money. The difference is the fee that you’re charged with for the transfer. However, these options will never tell you about these charges. That’s why they’re called hidden fees.
If you want to know some of these hidden fees, click here for reference.
What If You’re Planning to Send A Fixed Amount In Pesos?
There are times that you may want to send a fixed amount in pesos. For instance, you plan to send an exact amount of 20,000 pesos. The primary reason why you may want to do this is if you’re hiring someone from the Philippines, you’ll get a much more reasonable local rate if you pay in pesos. When you start paying in dollars, you may soon discover that your worker will ask for more money just because they’re seeing the dollar sign! When sending in pesos, local people would tend to think about it more than local salaries.
This is more challenging to do and most services won’t allow it. However, here are some that allow it:
- PayPal – is an American company operating a worldwide online payments system. Online money transfers serve as electronic alternatives to traditional paper methods like checks and money orders.
- Ko-Kard – has revolutionized the use of a reloadable VISA ATM Card as an easy and safe method to receive payouts.
- MoneyGram – is a money transfer company based in the United States with headquarters in Dallas, Texas. It has an operation center in St. Louis Park, Minnesota and regional and local offices around the world.
- WorldRemit – Online Money Transfer to friends and family abroad with WorldRemit. You can now send money easily & securely with guaranteed exchange rates and low fees.
Overall, the one thing you need to remember when you want to send money to your workers in the Philippines is to consider what payment option would best suit your business. Consider the hidden fees in some of the options and chose your payment options wisely.