The best ways to send money to the Philippines from the USA: Xoom

Filipinos abroad need to know the best ways to send money to the Philippines. Same is true for Filipinos in the USA. We continue supporting our parents, siblings, and other family members in the Philippines.

The US dollars we earn can go a long way in the Philippines. A hundred US dollars can be converted anywhere between PhP 4,500 to 5,300. That would be helpful for a family in the Philippines.

That is why remittance services are important in America. You want fast and less expensive service. We live in Tennessee where there are fewer Filipinos. That is why we don’t have a lot of Filipino-oriented services compared to cities in California and Illinois.

I consider myself with a bit of tech savvy, so naturally I want online solutions that won’t require me to leave the comforts of home.

How to use Xoom

Xoom is an online money transfer service and it is owned by Paypal.com, the giant pioneer of online payment systems. You can use Xoom by signing up for their service online.

Go to http://xoom.com to open an account. You will need an email address and a phone number. You can also use your Paypal account if you already have one. Alternatively, you can download their iPhone or Android app.

How to pay for your transfer

There are several ways to pay for your money transfer.

  • Bank Checking or Savings Account. You can nominate a US bank account: checking or savings to fund your transfer. You will need the account number, as well as the routing number or ACH number of your account. You can easily see this information in your check or in your online banking.
  • Credit or Debit Card. You can also use your credit or debit card to fund your transfer. But this can be a very expensive option. I don’t use this option.
  • You can also use your Paypal account to pay for your transfer.

How can the recipient receive it?

When you add your recipients, you can specify how you want them to get the money. They can pick up the cash at Xoom accredited locations. Banks are usually the best places to do this.

  • Bank Deposit. If your recipient has a bank account, this is the most convenient option. You make the transfer, they receive it in their bank account. They will then withdraw the money at their own convenience.
  • Door-to-door delivery. I’m not sure how this works because I have never used this option. I’m assuming that this could be similar to LBC’s Express Padala, subject to availability of delivery in different locations in the country.

The biggest advantage of this service is the quickness with which you can send money. Within minutes or an hour, the money you send could be in your recipient’s bank account. This is best suited for emergencies and remittances that cannot wait.

However, the foreign exchange rates of Xoom (and Paypal for that matter) are terrible! While the upfront cost of sending money is low, they also make pretty good money with the exchange rates.

Overall, I have used Xoom several times over the past three years that we are in the United States. Apart from the foreign exchange rate differential, I will still be using it. But in those times that I was not in a hurry, I looked for other options such as Transferwise. They are not much more expensive but their foreign exchange rates are way better.

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