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Decoding Transfer Fees: Ensuring Cost-Effective Remittances to the Philippines from Italy.

03 Oct 2023

Remittances are an essential part of the global economy because they help families and friends stay in touch with each other across countries. Just like people from other developing countries move abroad for better work opportunities, 12+ million Filipinos also reside overseas, and Italy alone hosts more than 157,664 Filipinos. Many Filipinos who live in Italy as expat workers send money to Philippines from Italy as financial support to their families back home. However, the fees and exchange rate margins of sending money abroad can be a big problem. This blog will explain how transfer fees work and look at ways to send money from Italy to the Philippines as affordably as possible.

Understanding Transfer Fees

When a global money transfer is created, it involves several types of charges and costs, understanding which is critical for every overseas Filipino worker. Let’s help you understand the transfer fees involved in your money transfers.

Impact of Transfer Fees on Remittance

Transfer fees are the fees that financial institutions and money transfer services charge for processing and sending remittances, which are the funds that expats send to their families or loved ones in another country. These fees can significantly affect remittances because they cut the amount of money the receiver gets. When transfer fees are high, a big chunk of the funds the sender sends pays for these costs. This leaves less money for the receiver to use. It is essential to understand and reduce transfer fees to ensure that the people who are supposed to get the money from foreign transfers get as much as possible.

Different Types of Transfer Fees

There are different kinds of transfer fees, and each one affects the cost of payments in another way:

Flat Fees

These fees are always the same amount, no matter how much money is being moved. Flat fees can be helpful for more significant transactions, but they may be better for smaller ones.

Percentage-Based Fees

Some companies charge a fee based on a percentage. This might be fine for small moves, but it gets more expensive as the transfer amount goes up.

Hidden Fees

Hidden fees are harder to understand and are often tied to alarming exchange rates. Service providers may add a markup to the exchange rate to make it look like there are no fees while making money off the conversion. Knowing about these secret costs is essential to making a money transfer from Italy to Philippines smartly.

The Significance of Understanding Transfer Fees to Make Informed Decisions

When sending money from Canada to the Philippines, knowing the transfer fees is essential. These fees can significantly affect the total cost of remittances, which could mean that the receiver gets less money. By understanding the different types of expenses, whether flat, based on a number, or hidden, senders can choose the most cost-effective and straightforward ways to send money. This knowledge gives people the power to get the most out of their transfers, ensuring their hard-earned money helps their loved ones abroad as much as possible.

Factors Affecting Transfer Fees

Below are the key factors that affect global money transfer fees.

Factors that Influence Transfer Fees

Transfer fees can vary a lot depending on many things. First, the choice of payment service provider is critical. Traditional banks often charge higher fees than online money transfer platforms and specialised services. Second, fees can be affected by whether the move is done online, through a bank, or in person. Most of the time, rates are better on online sites.

Last but not least, exchange rates are a significant issue. Some services may have lower fees, but they may make up for it by giving less favourable exchange rates, which can raise or lower the total cost of the transfer. So, people who want to send money overseas in the most cost-effective way must understand these factors and how they interact.

Varying Transfer Fees Based on the Amount being Remitted and the Speed of Transfer

Transfer fees often differ depending on the amount being sent and how quickly it needs to be sent. Service for sending money: Providers may charge less for sending more significant amounts, making it cheaper to send large ones simultaneously. On the other hand, fees may be higher in proportion to smaller moves. Also, the speed of the transfer can affect the cost. Usually, faster or instant transfers cost more than standard or slower choices. International payments are most cost-effective when the amount sent and the transfer speed are balanced.

The Impact of Sender and Recipient Locations on Transfer Fees

Locations of both the sender and the receiver can significantly affect transfer fees. Fees may differ depending on which countries are involved, and some corridors may have lower prices because of market competition and government rules. Some providers may also offer discounts or special deals for certain combos of sender and recipient. So, if you want to send money internationally in the most cost-effective way, you need to know how the locations of the sender and the receiver affect fees.  So you can save a substantial amount of your hard-earned money when transferring across borders.

Current Challenges for OFWs

Overseas Filipino Workers (OFWs) need help with transferring fees. When moving smaller amounts, high prices can consume much of their hard-earned money. When money is required quickly, remittance delays can cost a lot. Also, because fees and exchange rates are only sometimes transparent, it can be challenging for OFWs to figure out how much their transfers cost. These problems show how important it is for them to find ways to send money to their families in the Philippines that are both cheap and clear so that the money they send gets to them when they need it most.

Tips for Cost-Effective Remittances

Consider the following tips to make cost-effective remittance transfers to the Philippines from abroad.

Compare Service Providers

Refrain from settling for the first money transfer service you come across. Research and compare different providers' fees and exchange rates to find the most cost-effective option.

Use Online Money Transfer Services

Consider using online platforms like ACE Money Transfer, which often offer better exchange rates and lower fees than traditional banks and services. ACE is a secure and instant option to send money online from Italy to Philippines.

Watch Currency Rates

Keep a watch on trends in currency ratesTransferring money when the exchange rate is more favourable can save you money.

Plan Ahead

Avoid last-minute transfers, which often come with higher fees. Plan your remittances to find better deals.

Send Larger Amounts Less Frequently

Sending more considerable sums less frequently can be more cost-effective than making small, frequent transfers because it reduces the impact of fixed transfer fees.

Check for Promotions

Some money transfer services offer promotions and discounts, especially for first-time users. Take advantage of these opportunities to save on fees.

Consider Local Payout Options

Some services offer local currency payout options, which can save your recipient's conversion fees.

Explore Banking Partnerships

If your bank partners with international financial institutions, inquire about their remittance services. These partnerships may offer more competitive rates.

Transfer Money Smartly to the Philippines with ACE MONEY TRANSFER

ACE Money Transfer is a trusted partner for sending money to the Philippines. With an easy-to-use and safe internet platform, you can send money to your family and friends in the Philippines, ensuring they have the help they need when needed. ACE Money Transfer has reasonable exchange rates and low fees, which makes it a safe and cost-effective way to send money abroad. When you send money online to the Philippines with ACE Money Transfer, you can be sure that your money will get there quickly and safely, giving you peace of mind. You can transfer money to almost anywhere in the Philippines within seconds. 

The Way Forward

Sending money from Italy to Philippines does not have to be a costly affair. By understanding transfer fees and exchange rate margins and exploring various service providers and strategies, you can ensure that your hard-earned money reaches your loved ones back home in the most cost-effective way possible. Remember that some research and planning can go a long way in maximising the value of your remittances and positively impacting the lives of those you support.


What is a remittance, and why is it vital?

A remittance sends money from one country to another, typically by a foreign worker to their home country. It is essential because it supports the financial well-being of families and contributes to economic development in receiving countries.

How do I send money from Canada to the Philippines?

You can send money through various methods, including banks, money transfer companies, online platforms, and mobile wallets. Select a method that suits your necessities and budget.

What factors affect the cost of sending money to the Philippines?

Factors include the service provider, transfer method, exchange rates, the amount sent, and the delivery speed. These factors can impact the overall cost of your remittance.

What is the average transfer fee for sending money from Canada to the Philippines?

Transfer fees vary widely depending on the service provider and chosen method. On average, fees may range from a few dollars to a percentage of the amount sent.

Are there ways to reduce transfer fees when sending money to the Philippines?

Yes, you can reduce transfer fees by comparing service providers, choosing digital transfer methods, sending more significant amounts less frequently, and planning your transfers.

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