19 Sep 2024
Remitting money to the Philippines is something that Overseas Filipino Workers (OFWs) in Germany and any other country should never take for granted. Germany is a country with very good living standards and job possibilities offering generous wages, but on the other hand, their earnings have to support families and send money to Philippines from Germany. It becomes an invisible strain of having no choice but to send money they barely get by themselves. OFWs should better grasp the different imposed transaction fees and how they eat up to get as much value out of their remittance.
When OFWs send money to the Philippines from Germany, they often face a range of fees that can significantly impact the amount received by their families. These fees can be categorized into three main types: transfer fees, exchange rate margins, and additional charges.
This is the most apparent cost, and it’s likely to differ from one service provider to the other. The fee is also different depending on the bank you want to use and the online money transfer services you want to transact with. Moreover, transferring money online is usually cheaper, but the costs can also be disguised, and they always accrue with the increasing number of transfers.
OFWs should also consider exchange rates, which implies that they should also be aware of the exchange rate margin. Normally, service providers give an exchange rate that is usually lower than the current market rate, and they profit from the spread between these two rates. This margin can range from 1 percent to 5 percent.
Besides transfer fees and exchange rate margins, OFWs may face other fees. These include service charges for payment methods and for expediting others. Certain providers require customers to pay a fee if they want cash instead of a bank transfer to make money transfer from Germany to Philippines.
Indeed, when it comes to the primary fees, they are usually fixed and stated clearly. However, there are always extra charges that are concealed. These can include:
Also, some online platforms may charge fees if your account is inactive for a while.
Sometimes, the recipient in the Philippines may be charged a fee. After that, they can collect the remittance in a few ways.
Some providers impose a cancellation fee, which is the same as the transfer fee if a transfer is made but later canceled. Those costs are clear. They make frequent money transfers more expensive. That is why OFWs must check for hidden charges before using remittance services for making an online money transfer from Germany to Philippines.
Due to the variation of fees, OFWs should compare and transact various money transfer services to identify the most affordable price. Here are some tips for making the best choice:
It is, therefore important to search for the available providers that offer cheap transfer fees. Certain online services will even charge you only during your first transaction or can give reduced charges for huge transactions.
Some services facilitate transfers in the shortest time possible for a fee. Depending on the conditions or time constraints that the transfer may imply, it may be cheaper to make it, but if there isn’t a lot of pressure regarding the time, it can be cheaper to opt for a standard transfer.
Some money transfer firms often offer offers, especially during the holidays when there is high demand for remittances. These could include no charges, higher rates of exchange, or even free cash back.
Ensure that all possible charges should be discussed to avoid any surprises when the amount is received in the Philippines.
For many OFWs, every euro matters. The cumulative effect of hidden transaction fees can significantly reduce the money that reaches their families back home.
This scenario shows the need for OFWs to stay informed. They should take the initiative to choose remittance methods. This will reduce hidden charges and ensure more of their earnings reach the intended destination.
OFWs often need to send money online to Philippines from Germany, which is vital. It is their families' lifeline back home. However, hidden remittance charges can erode what reaches the Philippines. OFWs should get the best value for their hard-earned dollars. They should learn how to differentiate between the types of fees and how they are charged. This will help them avoid overpaying.
By finding the best service provider and checking their OFW transfer rates, people can take control of their finances. They should also stay updated on new options for sending money home. This will help them know how far to stretch their money.
When sending money from Germany to the Philippines, fees often represent transfer costs, exchange rate margins as well additional charges for service fee on certain payment methods or fast delivery options.
OFWs can save money by comparing transfer fees and exchange rates. They should use standard (non-express) processing times. They should also stay updated on any promotions or fee waivers
These hidden charges reduce the amount of money received by your family. For instance unfavourable exchange rates combined with extra charges can result in a loss of hundreds of euros every year.
Yes, some hidden fees include inactivity fees, receiving fees, and cancellation fees. It's important to read the terms and conditions carefully to avoid unexpected costs.
