For those who regularly receives remittance course through Western Union, getting the best exchange rate is ideal. Now, which WU agent gives the best forex rate to customers?
On this iSensey post, we will be comparing the dollar to peso exchange rate of Gcash versus SM Savemore Money Transfer for a Western Union international remittance.
Remittances may be coming from an OFW relative, a friend abroad, or proceeds from a business transaction, among others. If one company, a Western Union agent, offers better rates than others, most people would gravitate to the one offering better rates.
Take note that although the remittance is in US dollars, both Gcash and Savemore will give the proceeds in Philippine peso. They do not do dollar cash out.
To Canvas Rate or Not
If the amount of remittance for claiming is small like $100, then the difference in rate will be very minimal. It may not even be worth obsessing over which WU agent gives the best exchange rate. Rate canvassing would be not recommended in this case.
But what if one will cash-out or claim a Western Union remittance in the amount of $1,500, $3,000, or higher? Then the usd to php difference will be a few hundreds, it may even be enough to buy a Jollibee bucket meal.
Today, a team member of iSensey needs to claim a Western Union remittance in the amount of $186.68. This came from Google Adsense as payment of Google Asia Pacific Pte Ltd for the advertisements that Google placed on her 3 websites.
Usually Google Adsense processes payments to bloggers, web publishers, and youtubers, every 21st of the month, then the money will be available on the 22nd. Many publishers and vloggers now prefer direct bank deposit to receive their Adsense ‘salary’, but there are still some like our colleague who prefers to claim the payment via a Western Union accredited center or agent.
Claim Western Union Remittance in Gcash
One can claim Western Union remittance in the Gcash app. Just open the app and then click Cash-In then find WU among the choices. Put in the estimated amount and MTCN and proceed. The next page will show how much exactly the amount of money that Gcash will credit to your account if one will complete the transaction. The app will show amount converted to peso net of the documentary stamp tax.
*To get estimated amount, check online for the current market forex rate for usd to php, and multiply it the expected dollar amount.
Our colleague tried the Gcash app but she did not push through with the transaction. She just want to check how much her $186.68 remittance equivalent in PESO if she will claim it via Gcash. It turns out the total remittance proceeds in PHP is P8,834.50, net of the Philippine doc stamp tax.
Therefore, the net usd to php dollar rate today in Gcash is $1 to P47.32.
Computation: P8,834.50 / $186.68 = P47.32
Claim Western Union Remittance in Savemore Money Transfer
SM Savemore Money Transfer and Money Changer is an accredited agent of Western Union, so one can claim WU remittance via this establishment. This is where our iSensey colleague ultimately claimed her Google Adsense Western Union remittance.
In Savemore’s forex board, it shows that USD to PHP rate is P47.60 today January 22, 2021. However, take note that documentary stamp tax will be levied on US dollars remittance for cashing-out in Western Union. The doc stamp will depend on the amount that will be claimed.
To make an apple to apple comparison, we will use the net proceeds for our computation.
Again the amount in US Dollars that our colleague claimed in WU is $186.68. The actual money she got from Savemore Money Transfer is P8,859.31, net of the documentary stamps tax.
Therefore, the net usd to php dollar rate in Savemore today is $1 to P47.56.
Computation: P8,859.31/$186.68 = P47.56
Now, comparing the net proceeds of Gcash versus Savemore, the difference is very small.
Savemore net proceeds: P8,859.31
Gcash net proceeds : P8,834.50
Difference of only P24.81.
A less than P100 difference is not worth it if one will consider the transport cost and time involve in going to a Savemore branch.
Gcash is more convenient because one can claim Western Union to Gcash anywhere as long as there is internet and processing is real quick.
So why did our colleague still choose to go to a Savemore? Well, as material for this iSensey article and because she will be going for grocery so might as well as do the WU claiming in one go. Plus, it might help those who are forex-rate-conscious and are receiving big remittances via Western Union.
How do you usually claim your Google Adsense payments? Your WU remittance?