Remittance Services: 5 Red Flags to Watch Out For

  Filipinos who work overseas often do so for a single reason – they want to make the lives of the ones they leave behind a whole lot better. And for their families to experience that lifestyle upgrade that they’ve always dreamed of, this means sending money back home on a regular basis.  

There are so many options by which overseas workers can send money back home. There are times however, when OFWs make the wrong choice and end up losing valuable time over what’s supposed to be an easy and quick process. There may also be instances when they lose money as well – money that their families back home for something really important.


So how should OFWs choose the remittance service that could give them the kind of service they deserve? Here are a few red flags that you should be watching out for before deciding on a remittance service:

  • Huge Transfer Fees

Sure, transferring money isn’t exactly the easiest thing in the world to do if you’re the one providing the service. But this does not mean that they can charge each client a huge chunk of money at every turn just to make up for their effort.


There are so many remittance services that only require a small fee for them to complete the transfer. Make sure you compare different options first in terms of transfer or service fees so that you can get the best value out of every deal.

  • Long Response Times

If it’s your first time to use a specific remittance service, try calling their customer service number first, or sending them an inquiry through email. If they respond in a timely manner, then there’s a huge chance that they would also be able to meet your needs the same way.


Remittance services that take so long to respond could also take forever to respond to your calls and emails once you really start encountering problems with the service. Worse, they might not respond at all.

  • Inability to Answer Questions Clearly

At the same time that you are checking on the speed of their response, you should also be checking on the quality of their responses. Remittance services that have excellent customer support would be able to explain even the most complex things in a manner that you would easily understand.


However, if the person on the other end of the line is unable to explain even the simplest concepts, then it may be hard to communicate with them as well once really big problems start floating to the surface.

  • Unclear and Complicated Policies

A set of guidelines is always followed no matter what kind of service you’re signing up for. But when it comes to services that deal with money, these guidelines have to be even stricter and clearer. After all, you wouldn’t want to lose money by default just because of a technicality.


Make sure you go over each of the guidelines set by the remittance company. The moment you start seeing a few loopholes in their system, then there’s a huge chance that you’ll be cheated out of the real value of the service that you paid for.

  • Bad Reviews

If there’s someone you can trust to give you a recommendation, it would be someone who has previously used the service. And the moment these old clients start saying the same bad things about a single provider, then stop and think twice about using their service regardless of whether it’s owned by a friend or is offering you a better deal compared to the others.


Bad reviews are there for a reason – to warn other people and save them from having the same horrible experience. If there’s just one or two negative reviews in the middle of a hundred glowing recommendations, then it’s fine to ignore those. If you see a service that has more bad feedback than positive ones however, then start running towards the opposite direction.


Choosing a remittance service is not that easy, especially if you’ve had little experience in doing so. It takes time to build trust, so it’s not exactly something that you can easily build between you and a service that you’ll only be using for the first time.

  But if you trust your instincts (and add a whole dash of common sense too), you can easily spot the red flags and end up using the remittance service that could really give you the kind of excellent service that you’ve been looking for.   Special thanks to Mitchell Schade for the main image.
Rica J

I am a mother, a wife and a technology loving Filipina who loves reading hi-fiction books (dragons!) , good stories, dancing, laughter, lying on the grass and eating balut. I am born and raised in the Philippines and now resides in Australia but finds myself in the Philippines for at least 3 months a year. I am part of the Filipino Australian Community and have been living between Australia and the Philippines since 2007.


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