How to Avoid Foreign Exchange Fees When Traveling from the Philippines

Traveling overseas from the Philippines can get expensive quickly, and not just because of flights, hotels and food. One cost that is easy to overlook is foreign exchange fees.

Whether you’re paying for dinner in the UK, shopping in Singapore or withdrawing cash in Taiwan, the way you convert and spend your Philippine pesos can have a surprisingly large impact on how much your trip ultimately costs.

Banks, card providers and currency exchange services may all use different exchange rates and fee structures. The good news is that with a little preparation, you can reduce unnecessary conversion charges and make your money go further while travelling.

Here are some of the most practical ways to avoid foreign exchange fees when travelling from the Philippines.

1. Understand the Exchange Rate You’re Actually Getting

One of the most important things to check when converting money is the exchange rate. You may see a money transfer provider advertising “zero fees”, but that doesn’t necessarily mean the transaction is free. Some providers make money by adding a margin to the exchange rate.

For example, there is a global reference rate for converting currencies often referred to as the mid-market exchange rate. This sits between the price at which currencies are being bought and sold on global currency markets.

A bank, card or remittance provider may give you a slightly less favourable rate and keep the difference. This means that when comparing an international money transfer or currency conversion service, you should look at both:

• The transfer or transaction fee
• The exchange rate you receive

Ultimately, what matters is how much foreign currency you get for your pesos.

2. Consider Transferring Money Before You Travel

Depending on the accounts and cards available to you, it can sometimes make sense to organize your money before your trip. For example, you might transfer PHP into an account linked to a travel-friendly debit card or multicurrency account before travelling. You can then use that card overseas instead of repeatedly converting money through a traditional Philippine bank card.

This can be especially useful if your card provider offers competitive exchange rates and doesn’t charge a foreign transaction fee.

The same principle applies to international remittance. Someone sending money internationally should consider the total amount the recipient receives rather than focusing only on the advertised transfer fee.

For Filipino travellers and Overseas Filipino Workers (OFWs), understanding how money moves between countries can make a significant difference over time.

3. Look for Cards Without Foreign Transaction Fees

Many traditional debit and credit cards charge an international transaction fee when you make a purchase in another currency. A fee of a few percent might not sound significant on one purchase, but it can add up over an entire holiday.

Imagine spending the equivalent of PHP 100,000 during a trip. Even a 3% international transaction fee could mean another PHP 3,000 in charges.

Before travelling, check whether your card charges fees for:

• International purchases
• Foreign currency conversion
• Overseas ATM withdrawals
• International ATM operator fees

If possible, consider a debit or travel card designed for overseas use.

4. Always Pay in the Local Currency

When using a card overseas, a payment terminal may sometimes ask whether you want to pay in Philippine pesos or the local currency. In Japan, for example, you might be offered the choice between paying in JPY or PHP.

Choosing pesos can seem convenient because you immediately know exactly how much you’re paying. However, this often involves something called Dynamic Currency Conversion (DCC).

With DCC, the merchant’s payment provider performs the currency conversion and determines the exchange rate. That exchange rate may be worse than the rate offered by your own card provider.

As a general rule, if your card offers good international exchange rates, paying in the local currency (such as GBP in the United Kingdom) can give your card provider the opportunity to handle the conversion instead.

5. Be Careful With Airport Currency Exchange Counters

Airport foreign exchange counters are convenient, but convenience can come at a price. The exchange rates available at airports may be less competitive than alternatives available before your trip or within your destination.

It can still be useful to carry a small amount of cash when you arrive, particularly in destinations where cash is widely used. However, you don’t necessarily need to exchange your entire travel budget at the airport.

Compare the amount you’ll receive before accepting any currency exchange transaction. The same principle applies when comparing a money transfer service in the Philippines: don’t assume the most convenient provider necessarily gives you the best overall deal.

6. Minimise Overseas ATM Withdrawals

ATM withdrawals can involve several different charges at once. Your Philippine bank may charge an overseas withdrawal fee. The ATM owner may also charge a fee, and your bank may add a foreign exchange margin when converting the withdrawal back into pesos.

If you do need cash, withdrawing a larger amount less frequently can sometimes reduce the number of fixed ATM fees you pay. However, you should also consider security and avoid carrying unnecessarily large amounts of cash.

Check your bank’s international ATM fees before departing.

7. Compare Money Transfer and Remittance Providers

Foreign exchange isn’t only relevant when you’re travelling. Millions of Filipinos regularly move money internationally for family support, savings, bills and other expenses.

For an OFW sending money to the Philippines, even relatively small differences in fees and exchange rates can add up across monthly transfers.

When comparing an OFW remittance service, consider:

• The exchange rate
• Transfer fees
• Transfer speed
• Payment methods
• Recipient payout options
• The final PHP amount received

A service advertising the lowest transfer fee isn’t necessarily the cheapest if its exchange rate is significantly worse.

Likewise, when you send money from the Philippines overseas, comparing the full cost of the transaction can help you make a more informed decision.

8. Plan Your Money Before You Leave

Some of the easiest savings happen before your plane takes off.

Before travelling, check:

• Which of your cards charge foreign transaction fees
• Which card offers the best exchange rate
• Whether overseas ATM withdrawals cost extra
• How much local currency you actually need
• Whether you can transfer money to a travel-friendly account in advance
• Your daily card and transfer limits

It can also be useful to have more than one payment method available in case a card is declined, lost or temporarily blocked.

Smarter International Money Transfers Start With Comparing the Total Cost

Whether you’re travelling overseas, supporting family or working abroad as an OFW, the fundamental rule is the same: look beyond the headline fee.

Foreign exchange margins, card fees and transfer charges can all affect the true cost of moving money internationally.

BCRemit helps customers make international money transfers and remittances with a focus on simple, convenient transfers and competitive exchange rates. If you’re looking to send money internationally, make an OFW remittance, or transfer money between the Philippines and another country, compare your options and pay attention to the amount that ultimately reaches the destination.

A few minutes spent checking fees and exchange rates can translate into meaningful savings, whether you’re transferring money home or simply trying to make your pesos go further on your next overseas trip. Download BCRemit from Google Play or the Apple App Store and see the difference for yourself!