Mas gusto mo bang isagot ng cashier ay DENIED at hindi matuloy ang transaction? Or mas gusto mong matuloy yong transaction and then later on, ma-charge ka ng 700 pesos over credit limit fee?

This happened to me, with my Metrobank MFree, but this time, hindi sa store o sa shop, kundi sa Internet. When I checked, malaki pa ang aking available credit limit, so I charged $10 to buy a domain name from GoDaddy. Later, when I got my statement, I was surprised to see an over-credit-limit fee of 700 pesos! Yong $10, mga 400 plus lang, pero ang penalty ko 700!

I checked my statement kasi bakit ako over credit limit, and I was further surprised to find a big posting — merong amount na hindi pala na-post na noong September pa dapat na-post. I checked din my old statements of account, baka nadoble ang posting, at hindi naman. Delayed by 3 months ang posting!

I thought about bakit in-approve ng Metrobank Card system yong online payment kung wala na pala akong credit, kasi ang ibang cards naman usually DENIED ang response kapag over the limit na. Siguro maraming cases na sa Metrobank na nagreklamo ang mga cardholders nila about failed business transactions dahil DENIED ang payments nila due to OVER CREDIT LIMIT.

Sa BPI Classic, walang over-the-limit fee because BPI denies purchases when the credit is used up. Sa statement of account ng BPI card ko, nakalagay na “BPI reserves the right to disappove any purchases or cash advance that exceeds your credit limit.”

Anyway, I called Metrobank Customer Service about it, and the customer officer was very nice. I will know next week if my 700 over credit limit fee was reversed. I think I have a good chance because it’s my first time to be charged with over limit fee, and that there was a much delayed big posting.

Someone asked about crossed and open checks, so I’ll describe them first before going to the main topic.

CROSSED CHECK:  Yong may 2 parallel slant lines sa left top corner ng check. This means this check CAN NOT BE ENCASHED over the counter. Ide-deposit siya to the account of the person whose name is on the check.

Yong ibang issuer, nag-i-stamp ng FOR DEPOSIT ONLY or FOR PAYEE ACCOUNT ONLY sa check.

Merong company-issued checks na pre-printed at naka-design na sa check yong FOR PAYEE ACCOUNT only.

OPEN CHECK or UNCROSSED CHECK:  Walang 2 parallel slant lines, at walang FOR DEPOSIT ONLY or FOR PAYEE ACCOUNT ONLY. This can be encashed immediately over the counter on date of check at the drawee bank branch (yong bank branch ng nag-issue ng check).

To avoid troubles and stress, don’t do the following:

DON’Ts

1. Huwag mong ipagkalat na meron kang checking account. You are opening yourself up for abuse by friends, neighbors, officemates and relatives na mahilig manghiram pero hindi responsable.

2. Iwasan ang pag-issue ng check na Pay to CASH.  Ginagamit lang ito sa maramihang issue ng checks for awards, rewards, etc. Kapag merong name ang check, meron kang proof of payment at mas accurate ang financial records mo.

3. Do not issue a check if there’s no money or not enough money in your account to cover check encashment.

Huwag mong isiping dahil crossed check ay safe pa…dahil clearing rules have changed. You can no longer fund your account upon presentation of the check ( for stricter banks).  Penalty agad.

Merong banks that allow more time, but funding should be done within the day of check presentation. Some banks also offer options, such as automatic transfer arrangement or electronic funding. Before 7:30 am the next day, banks are required by BSP to return unfunded checks. Pag returned check, surely kasabay ang penalty.

Eh kung open check pa at dinala agad sa bank mo for encashment, may penalty ka agad.

Penalties for unfunded checks and returned checks are costly. Hindi na lang 2k ngayon. Iba-iba rin ang penalty policies — puedeng merong penalty imposed by the drawee bank and another by the payee bank.

So, basahin mo yong check clearing policies ng bank mo, at kung magkano ang penalties, at kung ano yong mga penalties.

4. Do not issue post-dated checks if you are not sure where money will come from, especially if these are big amounts.

Payees can use the checks to sue you for violating the Bouncing Check Law or for committing Estafa.

Usually, car dealers, real estate developers, housing loan providers, and rental property owners require post-dated checks. Ask these people if you have the option, in case of some problems in the future, to notify them and request for a grace period before they deposit the check, so you can avoid the costly penalties.

5.  Do not bring your checkbook anywhere you go.

Parang credit card din ang checkbook. Kapag nawala, puedeng gamitin ng iba lalo na kung meron kang pirma doon na matutularan nila.

6. Do not issue a signed blank check.  Puedeng malayong malaking amount ang isusulat ng binigyan mo.

Sulatan mo muna ang date, name, and amount bago mo pirmahan.

7.  In writing the amount in words, huwag kang mag-iwan ng malaking space between sa printed na “PESOS” at yong amount na isusulat mo, para nang sa ganon, wala nang maidagdag pa ng mga gustong manloko.

Puede kasing gawing “Twenty Nine Thousand Pesos” yong “Nine Thousand Pesos” kapag merong space.

Ganon din sa amount in number, puedeng 29,000 yong 9,000 lang. Dapat konting-konti ang space between the Peso sign and the amount. Yong iba, gumagamit ng dash o asterisk before and after the amount in number and amount in words.

8. Don’t forget your maintaining balance.

Kung nahatak pati maintaining balance to fund a check, remember to replace it ASAP. Dagdagan mo pa para mahila pataas yong monthly average daily balance at umabot sa required balance.

9. Punuin mo ng XXXXX ang check na merong error para hindi magamit ng iba.

10. Gamitin mo yong bookkeeping pages ng checkbook mo. Fill-up the DATE, CHECK NUMBER, PARTICULARS, DEPOSIT WITHDRAWAL, BALANCE after you write every check para ma-check mo ang balance mo at ma-monitor mo ang pera mo. Mache-check mo rin kung merong nawawalang check.

DOs

1. If your bank has Internet banking, enroll your account para mas madaling mag-monitor ng account. Madali ring mag-transfer ng money from your savings account to your checking account.

2. Keep the phone number of your bank branch, so you can call if you have questions.

3. Know your bank’s other branches and their locations, so you know where to deposit money in case you’re somewhere else.

Checking account in the Philippines

Related Article:

Cheapest Checking Account in the Philippines

Philippine Checking Accounts with Low Maintaining Balance Requirements

I’m now looking for another money transfer service that my U.S. employers can use to send me my salary as a virtual assistant and SEO writer. And it must be an online service, as my employers are busy. There are cheaper remittance alternatives, but my employers don’t have time to go to remittance outlets. They prefer paying online with their credit cards and debit cards.

Currently, they’re using Paypal. All they need is my email address linked to my Paypal account. But I now think I’m losing money because of the lower Paypal dollar-to-peso conversion rate. Also, I have to wait for 3 days before the money is credited to my account. And I have to pay 150 pesos to BPI for the transfer to my BPI account. They say other banks charge 200 pesos for the transfer.

It’s good my employers are the ones paying the Paypal transfer fee, which is 3.4 % of the remittance amount plus 15 pesos.

Now, let’s compare four services that offer online money transfer to Philippines from the U.S.

PAYPAL

Money transfer fee: 3.4 % plus 15 pesos for credit card payments (paid by either the sender or recipient) plus 150 or 200 pesos for withdrawal into a local bank account

For remittance amount of $500, transfer fee is $17 plus 15 pesos, plus 150 pesos for withdrawal into a BPI account or 200 pesos if withdrawn into a BDO account.

For $850, fee is $28.9 plus 15 pesos, plus 150 pesos for withdrawal into a BPI account or 200 pesos into a BDO account.

Dollar-peso exchange rate:
On Dec 17, the Paypal exchange rate was 1 US$ = 42.6354 pesos
BDO exchange rate was 1 US$ = 43.50 pesos

Although the payment appears immediately on Paypal account, the actual money transfer takes 2 to 5 days or more. So far, the transfer to my BPI account takes 3 business days. Visa, MasterCard and American Express credit cards or debit cards can be used.

XOOM

On Dec 17, the Xoom exchange rate was 1 US$ = 42.88 pesos
while the BDO exchange rate was 1 US$ = 43.50 pesos.

The minimum amount to send is $50. The service fee is $5.99 if paid thru bank account and $8.99 if paid thru credit or debit card. Fees start at $5.99.

For $500, transfer fee is $13.99 if paid thru credit card or debit card. For $850, the fee is $17.99. For $1,000, the fee is $18.99.

If payment is made via bank account, money transfer fee is $5.99.

WESTERN UNION

On Dec 17, the Western Union exchange rate was 1 US dollar = 42.6494157 pesos
while the BDO exchange rate was US dollar = 43.50 pesos.

For a remittance amount of $500, transfer fee is $25. For $850, fee is $30. For $1,000, fee is $30. Sender can use Visa, MasterCard or Discover.

If bank account is used to send, money transfer takes 3 business days, but it’s cheaper — only $8 for a remittance amount of $500.

MONEYGRAM

For remittance amount of $500, transfer fee is $28. For $850, fee is $55.
The system calculates only up to $899.99, can’t find why. Moneygram does not disclose its currency exchange rate before actual processing.

If bank account is used to send, remittance takes 3 business days and the money transfer fee is $14.99 for a remittance amount of $500.

From the above chart, it looks like XOOM is the best.  I’ll check again and then ask my employers to pay through XOOM.

Disclaimer:  If you’re also analyzing which service to use to make online money transfer to Philippines, please double-check my computations.  I made careful research, but I might have missed something.

Visit any RCBC Telemoney office in Italy, and then choose from several meal packages to send. Your order will be processed just like a remittance.  The beneficiaries will be contacted and asked if they like to enjoy the packages in any Jollibee branch or if they like the meals to be delivered to their homes or offices.

You can find here a list of RCBC Telemoney offices in Italy.

RCBC Telemoney is available in the following countries:

Asia Pacific
Australia, Brunei, HongKong, Singapore, Malaysia, and Taiwan

Middle East
Saudi Arabia, United Arab Emirates, Cyprus, Kuwait, Israel, Lebanon, Oman, Qatar

North America — United States and Canada
California, Illinois, Nevada, Hawaii, Guam, South Carolina, New Jersey, Florida, British Columbia and Ontario

Europe
Italy, Greece, Ireland, United Kingdom (Great Britain), and Switzerland

BDO or Banco de Oro also has a Jollibee Padalang Langhap-Sarap delivery service partnership with Jollibee.  This tie-up started in 2007.  Ask BDO remittance partners in Italy about this service if it’s still on-going.

Most banks in the Philippines don’t allow immediate opening of checking accounts, unless you are backed by someone with influence in the bank or backed by a recognized client or you have a good history of financial transactions with them, or perhaps a big long-term time deposit.

Banks want to reduce man-hours or problems related to unfunded checks and bouncing checks, and particularly the possibility of getting involved in check issuers’ legal cases, so they’re selective with regards to checking accounts.

So, start establishing a good track of financial handling in the bank where you want to open a checking account in the near future:

• Choose a reputable bank near your home or your place of work or business.
• Check if this bank has a checking account that has lower minimum maintaining balance requirements. The monthly fees for below-maintaining-balance status add up to huge amounts.
• Open a passbook savings account with this selected bank, and deposit regularly. One trick is to deposit all your salary and all other income as they come, even if you withdraw a big part of it the same day or the next day. This will show entries of bigger amounts of money.
• By the time you apply for a checking account, perhaps after 6 months or more, the bank officer would have some big figures to look at.

Three years ago, I applied for a checking account with this big blue bank, after my account with this big red bank was closed because of a transaction that nearly wiped out our finances.

I had a two-year savings account with this big blue bank, and I knew one of their tellers who vouched for me, but the bank officer still rejected my application. She said that my passbook showed few BIG transactions.

So, show them your big transactions, even if they’re just one- or two-day deposits, better if done regularly.

Related Articles:
Cheapest Checking Account in the Philippines
Other Banks’ Checking Accounts with Low Maintaining Balance Requirements
Check Clearing in the Philippines
Savings Accounts in the Philippines with the Lowest Maintaining Balances
Lists of Banks in the Philippines

about 13.24 percent or $822.43 million came from OFWs working in other Asian countries, according to data compiled by the Bangko Sentral ng Pilipinas.

With a growth rate of 442%, remittances from Mongolia showed the highest rate of increase compared to remittances in the first 4 months of 2010. India followed, with an increase rate of almost 102%. The biggest drop rates were seen in remittances from Pakistan, Macau, Maldive Islands and Vietnam.

Note for North Korea:  A total of US$ 7.55 million were remitted from North Korea from 2006 to 2007. According to a 2006 issue of Manila Standard Today, some Filipinos worked during those years for United Nations agencies and the British-American Tobacco Co. and the others were musicians.

Related Articles:
Remittances from OFWs in UK — Highest in Europe
Savings Accounts for OFW Remittances
OFW Parents Take Advantage of Free Internet Banking to Manage Your Childrens Weekly Allowance
Savings Accounts in the Philippines with the Lowest Maintaining Balances
Top 20 Banks in the Philippines Based on Assets Dec 2010

Based on new BDO brochure:

• Maximum amount of withdrawal per day  =  50,000 pesos
• Maximum number of withdrawals per day  =  5 times
• Minimum amount of withdrawal per transaction at BDO ATMs  =  200 pesos
• Maximum amount of withdrawal per transaction at BDO ATMS  =  25,000 pesos
• Fee for Withdrawal at the ATMs of other banks  =  11 pesos
• Fee for balance inquiry at the ATMs of other banks  =  2 pesos
• Withdrawal fee at MasterCard Cirrus and Visa Plus ATMs  =  US$ 3.50
• Balance inquiry fee at MasterCard Cirrus and Visa Plus ATMs  =  US$ 1.00
• Denied Transaction at MasterCard Cirrus and Visa Plus ATMs = US$ 1.00
• Fee for not maintaining the average daily balance  =  200 pesos
• Maintaining balance for peso ATM accounts  =  2,000 pesos
• Maintaining balance for peso passbook accounts with or without ATMs  =  5,000 pesos
• Maintaining balance for SSS Pension accounts  =  100 pesos
• You can make a checkbook request via BDO ATMs.  It’s free.
• When you open a new account, you need to:

- be physically present at the bank  (not representative, not even family member)
- bring at least two valid IDs  (original and clear photocopies)
- bring a recent 1 x 1 photo

Based on personal experience:

At BDO branches inside SM Malls, you can deposit to BDO Cash Cards only up to 6 pm.

-  If you’re depositing to more than one BDO Cash cards, you pay 25 pesos for the second deposit. If you don’t like to pay, fall in line again to deposit to the second Cash card.

-  You’re not allowed to deposit to a BDO payroll cash card over-the-counter. The teller said it’s because it’s a company-issued cash card. This means you can no longer use the card for your own personal use if you leave your company. (Siempre that means bumili ka raw ng bago para sa sarili mo.)

But I checked if I can deposit to my payroll cash card online, and it worked. (Hope hindi nila i-disable ito. We find ways, di ba sabi ninyo, BDO?)

-  If your account is ATM-based (walang passbook), you pay 100 pesos if you withdraw at the counter.  Pero kapag nakawidro ka na ng 50K sa ATM, and you need some more, at marami ka pang pera, you can withdraw over the counter for free.

From the BDO website:

BDO account numbers have been changed from 10 digits to 12 digits. But don’t worry, you don’t need to do anything about your accounts; BDO will make the needed changes in your records. You can still use your 10-digit numbers, but you’re encouraged to begin using the 12-digit when you’re depositing, although not yet required.

For peso savings and checking accounts: 00 is added before the 10-digit number.
For US dollar savings accounts: 10 is added before the 10-digit number.
For third-currency savings accounts: 30 is added before the 10-digit number.

Related Articles:

BDO Kabayan Maintaining Balance
BPI, BDO, or Metrobank Fees — Why Keep Paying Them?
Savings Accounts in the Philippines with the Lowest Maintaining Balances
BDO Remittance from Australia — Money Transfer to the Philippines

But if you’re paying only the Minimum Amount Due, or a litle over it, then the one thing that you can do to reduce your Finance Charges is to pay early. May pera ka na rin lang, ibayad mo na.  Huwag nang antayin pa na lumapit yong due date.

Why pay early when there’s a Payment Due Date?

Because the earlier you pay, the earlier you reduce your Daily Balance, the lesser the number of days your Balance is High, and the lesser your finance charge.

How is that?

Because the interest rate is applied to the average daily balance. If the balance is lower, then the finance charge is lower.

Example: These are your daily balances:

Day 1  =  10,000 pesos
Day 2  =  10,000 pesos
Day 3  =  10,000 pesos
Day 4  =  10,000 pesos

You paid 300 pesos on Day 5

Day 5  =  9,700 pesos
Day 6  =  9,700 pesos
Day 7  =  9,700 pesos
Day 8  =  9,700 pesos

You paid 500 pesos on Day 9

Day 09  =  9,200 pesos
Day 10  =  9,200 pesos
Day 11  =  9,200 pesos
Day 12  =  9,200 pesos
Day 13  =  9,200 pesos
Day 14  =  9,200 pesos
Day 15  =  9,200 pesos
Day 16  =  9,200 pesos

and so on…. until Day 30 or 31

If you calculate Average Daily Balance, pag nagbayad ka ng 300 or 500, your average daily balance would be 9,367.74.

Pag wala kang ibinayad,  ang average daily balance mo ay 10,000 pesos, at siempre, mas mataas ang interest mo.

Related Articles:
BPI, BDO, or Metrobank Fees — Why Keep Paying Them?
BPI Credit Card — Good Features of BPI Classic

Actually, your total remittance fee consists of two costs:

1. Your remittance fee
2. Plus the margin that the bank or the remittance firm gets from the conversion of your foreign currency into Philippine peso

In some cases, the remittance fee is cheap but the currency conversion doesn’t favor you.  In other cases, the remittance fee is higher, but the currency conversion is just right.

Check the fees below.  According to the World Bank, these fees are the average fees
charged by banks and other remittance services for money transfers.

I compiled this chart in April and I checked again the World Bank site in May, and there are differences in the total fees.  It shows that the foreign currency conversion affects the total remittance fees.

These are the average money transfer fees ( in US$ ) for a remittance amount of US$500 in April according to the World Bank site.

Note:   The amounts above were compiled last April 24. The amounts change frequently because foreign exchange rates change frequently.

The World Bank tracks money transfer from 26 major remitting countries to 89 receiving countries. In 2010, more than 192 million people sent $440 billion to their recipients.

BPI Internet banking is perhaps the cheapest, fastest and most secure way
to send money from England to the Philippines.  Because it’s done over the Internet, the credit process is instant or within minutes of clicking keys on your PC or laptop.

For remittances up to 50,000 British pounds, the remittance fee is only 5 pounds,
according to the BPI Europe website.

Of course, if you don’t have yet the required accounts, you must do the following first:

• You must open a BPI Europe account.
• You must enroll this account in BPI EXpress Online.
• You must attach to your Express Online account your BPI, BPI Family, or BPI Direct account (the Philippine account to which you are sending your money to).

Note:   This remittance system is not available to businesses. It’s not also offered to persons engaged in the money-transfer-to-Philippines business.