Learn how to send and receive money through Xoom and Paypal
Two of our more recommended methods to send and receive payments are Xoom and PayPal. We have used both services and have found that both are convenient and easy to use. While some may prefer one over the other, each has their own merits. I will discuss each payment method in detail so that you may be able to choose which payment method is best for you to use. (Jump to PayPal section)
Sending money through Xoom is very easy. You just create a Xoom account, choose a method of funding your money transfer, enter recipient details and payout method, and you’re good to go. You only need to create an account with Xoom once. All the details you enter are saved in your account and should you choose to re-use the same details (e.g. funding method, recipient, payout method), you don’t need to re-enter them again. Creating a Xoom account is free.
There are a lot of ways that you can fund your transfer with Xoom. You can choose to fund it with your US bank account via eCheck. With this funding method, Xoom receives the funds from your bank in 0-4 days. Another way to fund your transfer is by using a credit/debit card and by using Paypal. Using these funding methods, Xoom receives your funds instantly and can then facilitate transfer to your recipient right away. Once Xoom receives the funds, they immediately process the final transfer of funds to your recipient.
Xoom transfer fees differ based on your recipient’s country, the method you choose to fund your transfer, and the amount you wish to transfer. Below is a table of rates for sending money to the Philippines:
To receive money sent through Xoom, it is not even necessary for you to have a Xoom account. It is the person sending the money that enters your details when they make the transfer and you will be able to receive the funds based on the payout method chosen by the sender.
You can receive Xoom funds through different ways:
- Bank Deposit – You can receive the funds directly to a bank account of your choice. This payout method can take up to a day to complete. Here are the requirements you need to provide the sender in order for them to be able to transfer funds to your bank account:
- Bank Name, as bank deposits are available all major and most regional banks in the Philippines. View Xoom Money Transfer Locations for complete list of banks.
- The correct currency of your beneficiary’s bank account (Peso or US Dollar). Transactions sent with wrong currency cannot be completed and will be canceled.
- The correct Account Number
- The entire name of your recipient as it appears on the recipient’s Bank Account
- Complete address of your recipient, including the City and the Province
- A valid phone number (city code+domestic number)
- Cash Pick-up – If you don’t have a bank account, you can still receive Xoom funds. You can choose to pick up the money at various pick-up points at Xoom partner establishments in your country. This payout method can take up to a day to complete. You will need the following when you go to pick up your money:
- Xoom Tracking Number
- One of the following ID combinations:
- Two forms of primary ID
- Three forms of secondary ID
- One form of primary ID and the Secret Word
- Two forms of secondary ID and the Secret Word
- Home Delivery – You can even have the money delivered directly to you at a specified address. If you choose this payout, you may receive the money within a day to several days, depending on the distance of the specified address. When you opt for this payout method, make sure you have the following ready when you are expecting funds to be delivered to you:
- Xoom Tracking Number
- One primary ID
Below is a list of Xoom partner facilities in the Philippines where one can pick up a fund transfer:
As per my experience, Xoom exchange rates are a few points lower than prevailing exchange rates for that day. Let us take for example the US dollar($) to PH Peso (P) exchange rate for March 22, 2010. According to xe.com:
while Xoom exchange rate is as follows:
The Xoom exchange rate is almost a peso lower than the market exchange rate.
In order to send money through PayPal and pay for the services of your contractor, your contractor needs to have a Paypal account. Once they have one, all you need is the email address they used to register with Paypal, which serves as the account owner’s identifier. If they don’t have a Paypal account yet, you can still send them money and Paypal will send them an email asking them to create an account.
You need to have a Paypal balance or a credit/debit card attached to your account in order for you to be able to send money. You may acquire Paypal balance from payments sent to you by other people, through Paypal, or by transferring balance from your registered bank account. If your Paypal balance is not enough to fund your transfer, or if you don’t have any Paypal balance, the amount transferred will be funded by your credit/debit card. Paypal funds transfer is instant and the money you sent will appear in your recipient’s account immediately.
Transferring money using the balance in your Paypal account is free. However, if you use your credit card to fund the transfer, there are fees associated with the transfer. You can opt to pay for these fees yourself or have the recipient pay them. Here is Paypal’s fee structure for personal payments/fund transfers:
Receiving money :
To receive funds through Paypal, you need to have an account with them. Registering for an account with Paypal is free. If you don’t have a Paypal account at the time when the money has been sent, you will get an email from Paypal informing you of the money you received and you will be prompted to make an account. Once your account is made, the money sent to you will appear as your Paypal balance.
There are a couple of ways to withdraw your Paypal balance when you’re in the Philippines:
- Withdraw money to your bank account – To withdraw Paypal funds to your bank account, you need to add your bank account to your Paypal account. Here’s how you can add your bank account:
- Log in to your PayPal account.
- Click Profile.
- Click Bank Accounts under Financial Information.
- Click Add.
- Enter the required information, then click Add Bank Account.
Once you have added your bank account, you can now transfer your Paypal balance into your bank account. Here’s how:
- Log in to your PayPal account and click My Account.
- Click Withdraw at the top of the page.
- Click Withdraw funds to your bank account .
- Enter your information and click Continue.
- Click Submit.
Fees associated with withdrawing funds to your bank account are as follows:
- Withdraw money to your credit card – To withdraw Paypal balance to your credit card, you first have to link a credit card with Paypal. Here’s how to link a debit or credit card to your PayPal account:
- Log in to your PayPal account.
- Click Profile at the top of the page.
- Click Credit/Debit Cards under Financial Information.
- Click Add a card.
- Enter the information requested, including your card number (without spaces or dashes).
- Enter the Card Verification Number from the back of your card.
- Enter the address where you receive the billing statements for your card.
- Click Add Card.
After you have linked a credit card with your Paypal account, you then need to confirm it. When you confirm your credit card, Paypal will charge PHP100.00 or $1.95 to the credit card you entered into your account. You will then need to look at your credit card statement online or call your credit card customer service to get the 4-digit Paypal code. You can find your 4-digit PayPal code on your debit or credit card statement next to or near the charge amount. In the item description section, you will see it next to the word PAYPAL or PP. Once you have your Paypal code, log in to your PayPal account, click Profile at the top of the page and click Credit Cards under Financial Information and enter the code. After you’ve done this, your credit card is now confirmed and the amount charged to your credit card will be credited back to your Paypal account.
After confirming your credit card, you can now withdraw money to your credit card by doing the following:
Log in to your PayPal account and click My Account.
Click Withdraw .
Click Withdraw funds to your bank card .
Enter your information and click Continue.
Fees associated with withdrawing funds into your credit card are as follows:
A summary of the withdrawal fees and processing time involved is illustrated in the table below:
Still from experience, Paypal exchange rates are lower than prevailing market rates by a few points. Using the same comparison used with Xoom, we will compare xe.com’s exchange rate for March 22, 2010 with Paypal’s exchange rate on the same day.
XE.com’s exchange rate is as follows:
Wile Paypal’s exchange rate is:
Paypal’s exchange rate is over a peso lower than XE.com’s exchange rate and also lower than Xoom’s exchange rate by a few points.