Learn how to send and receive money through Xoom and Paypal

Posted March 22, 2010 in Employer Tips, Tips & Tutorials, Worker Tips by

UPDATE: This article is outdated as Xoom is stopping service to the Philippines. We now recommend using Payments.ph for all transactions. Read about how to send and receive money through Payments.ph.

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:

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:

xoom fees phil

Receiving money:

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:

xoom cash pick up

Exchange rates:

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:

xe exchange rates 3_22

while Xoom exchange rate is as follows:

xoom exchange rate 3_22The Xoom exchange rate is almost a peso lower than the market exchange rate.

Sending money:

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:

paypal fees

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:
    1. Log in to your PayPal account.
    2. Click Profile.
    3. Click Bank Accounts under Financial Information.
    4. Click Add.
    5. 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:

    1. Log in to your PayPal account and click My Account.
    2. Click Withdraw at the top of the page.
    3. Click Withdraw funds to your bank account .
    4. Enter your information and click Continue.
    5. Click Submit.

Fees associated with withdrawing funds to your bank account are as follows:

paypal withdrawal fees

  • 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:
    1. Log in to your PayPal account.
    2. Click Profile at the top of the page.
    3. Click Credit/Debit Cards under Financial Information.
    4. Click Add a card.
    5. Enter the information requested, including your card number (without spaces or dashes).
    6. Enter the Card Verification Number from the back of your card.
    7. Enter the address where you receive the billing statements for your card.
    8. 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:

    1. Log in to your PayPal account and click My Account.
    2. Click Withdraw .
    3. Click Withdraw funds to your bank card .
    4. Enter your information and click Continue.
    5. Click Submit.

Fees associated with withdrawing funds into your credit card are as follows:

paypal card withdrawal fees

A summary of the withdrawal fees and processing time involved is illustrated in the table below:

paypal withdrawal fees_2

Exchange rates:

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:

xe exchange rates 3_22Wile Paypal’s exchange rate is:

paypal conversion 3_22

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.

58 responses to Learn how to send and receive money through Xoom and Paypal

  1. Paypal has already started sending emails that Xoom will be stopping their services with Paypal. I hope this is not true..

  2. Paypal had already stopped their Paypal-Xoom Transactions. The best thing we can do as freelancers is to open bank account to withdraw our paypal fund thru bank.

    • They did? That’s sad. Anyway, I agree with you. Best thing we can do is open a bank account. Paypal to bank account electronic funds transfer is free if you transfer P7000 and up. It also only takes 2-4 days for the transfer to complete.

  3. I always used Paypal as my mode of payment thru my employer for a year already. As far as I know,Paypal would charge you Php50 if you withdraw below Php7000 from your Paypal acct. to your preferred bank & it’s free if Php7000+ but there is a charge on ET(electronic transfer fee ) from my bank (BPI) going to my savings account of Php150 if my withdrawal is Php7000+ & Php250 if below Php7000. Electronic transfer fees varies of which bank you withdraw your earnings & It takes 2-4 days before I received the money on my preferred bank account.

  4. Hi Jeanet,

    Electronic transfer fees vary from one bank to the next. I have been using my Metrobank account to transfer my paypal balance to and so far, I haven’t been charged anything. The only thing I’m seeing is a difference in exchange rates, with paypal and the bank’s, with the bank’s exchange rate a bit lower than what is published on paypal. Thanks.

    Best regards,

  5. hi amabelle. what does the primary and secondary ids refer to? and also the secret word? i am working with an american company and they told me that they will pay me through xoom. i am not familiar with it so i am doing some research. hope you can help me.

    • @zinnia:

      My employers also send me payment via xoom. All they need are your bank details and they can send you money. The person sending you funds will fill up a form with xoom. Just provide them with the details that they need.

      I hope that helps.

  6. Hi there, thanks for posting this, it’s very useful. I don’t quite understand the ET fee with BPI. Is that standard if I will use my BPI saving acct to get my payment from Paypal?

  7. is there any money transfer that can be pay with ur funds in paypal .i wanna send money in the philippines using my funds in paypal is that possible thing

  8. @Charlotte:

    Yes, you can add your bank account to your paypal. The easy step by step instructions can be found in the article or you can find paypal’s guide through this link: How do I add or remove a local bank account.

  9. @Jessie:

    Yes, you can also add BDO as one of your bank accounts in PayPal or Xoom.

  10. can i use bdo debit card with xoom. how about bdo debit card to use in paypal. can you teach me how? thank you…

  11. @Rod:

    Try this link for the step by step tutorial for adding BDO debit card on Paypal. BDO is also listed as one of the banks supported by Xoom.

  12. I used paypal but I can’t withdraw my money even if I have a bank account because they are asking me for a credit card ‘to lift the limit’..I don’t have one, do I need to get one???

  13. djam said on July 8, 2011


    Is your account already verified at Paypal? If you are asked to lift your withdrawal limit, then you might need to verify your account or you might want to check this link from paypal:

    Hope this helps!

  14. yes, my status is unverified and they’re asking me for a credit card to get verified…so, will it mean that i’ll get one???

  15. You don’t actually need a credit card, an existing bank account or debit card should work. You just have to verify it and may be getting a certain amount (php250) on your account. But this is refundable, and Paypal will automatically send it back when verification of your bank account is complete.

  16. thank you very much…i’ll try it…

  17. You’re welcome Rizalie!

  18. hi mam debbie i would like to ask if i send money using xoom.com to the bank account of my friend in metrobank..does my name appear on the transaction history on the bank account of the recepient? i want to know bwcuase i want to help ds friend without knowing from whom…thank you…. .

  19. Hi Erwin,
    I’m not sure about Xoom, but on Paypal it does show the name from whom it was sent.
    You can enter you inquiries here on the Help page of Xoom.
    I hope that helps!

  20. is there any way that i can track that payment has been made to my PayPal account aside from the confirmation e-mail sent by “PayPal” re: CONFIRMATION OF FUND and ASSURANCE OF TRANSACTION AND PROMPT SHIPMENT??? I don’t want to get scammed because it says to the mail that:

    “what is required of you in order for your account to be credited is the item’s tracking/reference number, this number will be given to you at the courier office after you might have sent the item to the bearer, this is part of our new policy and a security measure in order to protect both the buyer and the seller, also to verify if the item was really bought from you we have sent you a confirmation email earlier to inform you that the payment is legal and has been confirmed, also to guide you against fraudulent acts.”

    Is there any way that I can check it to my PayPal Profile whether i really received the amount or not??? Thank you so much in advance.

  21. Hi Giselle, You should be able to see it on your Paypal account at the Overview tab > Payments Received. Or you can also use ‘View all of my transactions’ on the right side.

  22. I would like to fund my paypal account so I could send money to the US. How do you do that? My linked MetrobAnk acct Is not allowed.

  23. Hi Micah, based on my research, Paypal doesn’t allowed yet adding funds from debit card or credit card. But for purchases, for example eBay, you will be billed or charged on your credit card even if you have zero balance on your Paypal. Why not try transferring a little amount to a friend if a credit card is linked on your Paypal. Also be aware on how much it might charge you for the transfer.
    I believe the only way to add a fund for now is from a US bank account and fund transfer from another Paypal account.

  24. i would like to ask if i could withdraw the money that has been sent to my paypal account even if i dont have credit card or bank account?

  25. Hi Mariwen, no, I don’t think that’s possible. The only way to withdraw your money is through your bank account.

  26. Could anyone please let me know whether the bank of the sender charge anything to send the money through xoom?
    Usually they get the wire transfer fee, what is their benefit if we do xoom?

  27. Could anyone please let me know whether the bank of the sender charge fee to send the money through xoom?
    Usually they get the wire transfer fee, what is their benefit if we do xoom?

  28. Hi ma’am. Can I use my UMID card (GSIS eCard) in receiving payments?

  29. Hi Arman, I’m not sure, but I guess it is possible since it is a Visa card. If you have tried it, can you let us know if it works? It will be a very helpful info with other members with GSIS eCard too. Thanks. :)

  30. Hi mam Debbie i got an email confirmation that my supplier from china returned my payment cause I cancelled my order but when I check paypal my balance is 0 I got a notification in there (my paypal acct) that I received the money and I need to verify my email first after verifying my email and check my balance why is my balance still 0. Does updating my balance takes days for the update?

  31. Hi Kaye! Yes, I believe it takes hours or days for the update. However, you can always confirm that on their online Paypal Help. :)

  32. mam Debbie thank you, last question if someone sends you a money what email address will appear on your email is it paypal or the email of the sender? thanks

  33. Actually it is the email address of the sender, but that is also the username of the user on Paypal.
    Then the content will be from Paypal. It contains: “(Name of sender) sent you (Amount) USD”, the transaction ID and other details.

  34. thank you sis you’re way much better no the best than their own chat support representative

  35. Hi Debbie,

    Could you advise us on the most cost efficient bank where we could open a bank account for a registered Filipino corporation that will accept paypal payments overseas (primarily europe). Is Unionbank still the best option even for a corporation? I believe banks only allows passbook accounts for corporations. Also, will it be better if we maintain a multi-currency account: euro, Gbp, pesos, usd to minimize translation cost? Php1 difference is expensive. Our transactions would probably range Php50,000-120,000 per payment which we would need to withdraw as well on a per transaction basis.

    Will greatly appreciate your expert advice.

  36. Hi!

    What bank in the philippines that accept paypal payments?

  37. Hi, i need help. i have just registered to paypal and have it associated with my bank account metrobank. I have already received payment form my client and i can see it in the transaction history, i have accepted and it is now on unclaimed status. Do i really have to withdraw it immediately? or there is a day limit on when i am allowed to withdraw? because if i withdraw it now, i will be charge of 50.00Php. would it be fine if i just wait for my other payments and withdraw it all at the same time?
    Hope you could help me. Thank you for your assistance. :)

    • @joannalyn: Based on personal experience, I think it is fine if you want your money to put on-hold on PayPal. Indeed there is a withdrawal fee of 50.00 Php if the withdrawal is below 7,000.00 Php. I don’t think PayPal will deduct an amount in your funds if you decide to withdraw it at a later date.

  38. @paramae: thank you so much. :)

  39. HI again. I am already receiving payments from my client but i can’t seem to withdraw it. It is saying that i need to verify it. I followed the steps on how to verify it but instead of verifying my bank account, it is asking me to verify my credit card or debit card. i don’t have one. I have money on my bank account and still i can’t seem to withdraw the payments received. help me please i need the money asap, it is for my daughter. please help.

    • @joannalyn: Hi, I would suggest you contact PayPal customer service. They are prompt to reply to any inquiries (based on personal experience). Also, what bank account do you have? Thanks-

  40. Hi, what do i need to give to my employer if i want them to send my salary using paypal? is it my Bank account number?

    • @aileen: Hi, if your employer is going to send your salary in your PayPal account then all you need to provide is your PayPal email address. (The email address that you used when you open an account on PayPal). Thanks :)

  41. I’ve had a significantly different experience in Brazil.

    Xoom adopts standard market exchange rates, and the payee gets a cash deposit to their bank account within 1-24 hours on banking days. Nothing is charged to the payee. The sender pays USD 5 for amounts below USD 3K.

    PayPal has set up their own operations in Brazil. Since they opened, Xoom stopped accepting PayPal funds, so the transfer must be performed by PayPal itself. They don’t charge anything from the payer, however upon crediting funds to the payee’s account PayPal deducts about 6.5% of the amount in fees. Then, if the payee requests a transfer from their balance in PayPal to their bank account, they will perform a curency conversion, and as PayPal openly admits on their help pages, they adopt an exchange rate 3.5% lower than the market. Were that not enough, the transfer from PayPal to a bank account in Brazil (where interest rates are close to 10% per month) takes 3-5 banking days.

    I don’t know about other countries, however in Brazil PayPal is by far the most expensive way to receive payments from other countries.

    • @jose: Hi, I’ll have to agree with you there..sadly, some of the home-based online workers/ freelancers I know here in the Philippines ( me included ) are now going through the inconvenience and ‘hassle’ of using PayPal. If for example, we badly need our funds for emergency purposes, we will have to transfer our funds first to our bank account and wait for like 3-5 days before we can finally withdraw our money. The problem sometimes arise when there are local holidays, naturally it will take longer. There are cases in which the sender will shoulder the sending fees and the payee will have to pay 50.00 Php if withdrawal is below 7,000.00 Php.

      The good news is, EasyOutsource has come up with an idea of how to receive payments better, we are now working on it and hopefully this will be a good service for all of our users.

      We will keep you posted about this. Thanks :)

  42. mai said on June 14, 2012

    Hi Admins..
    is it possible to add my husband bank accnt to w/d our payout on paypal? BTW the paypal accnt is under my accnt.

  43. Paypal is no longer an option to send money via Xoom.com. Kindly check their site and try initiating a transfer. Its either by credit card or a debit card transactions only.

  44. I have to make a bank account first before I register to Paypal account?

  45. i just find your article say how to use xoom.it is very useful for me,and i find xoom fee are very cheap.like it very much.thanks.

  46. I think Xoom no longer accepts Paypal now. So sad coz the only option is via bank account which will take days to receive the money.

  47. how can i know if i my sender give me a right tracking number?and how will i know if xoom send me a confirmation in my email?
    coz i dont know how to figure it out if it is a trick or true?

Leave a reply

You must be logged in to post a comment.