Why Your Family Received PHP 56,430 Instead of PHP 59,080 (Same $1,000 Sent)

You expected ₱59,080 for a $1,000 remittance (₱59.08 per $1), but the person who cashed it got only ₱56,430. That hurts - ₱2,650 is a big gap. Don't panic. In the Philippines this is a very common situation and there are clear, fixable reasons behind it.

Here's what likely happened, how the math works, and step-by-step actions you can take to get answers (and avoid the same surprise next time).

Quick math so we're on the same page

• Expected: $1,000 × ₱59.08 = ₱59,080
• Actual credited: ₱56,430
• Shortfall: ₱2,650 (≈ 4.5% of the expected peso amount)
• Effective rate received by family: ₱56,430 ÷ $1,000 = ₱56.43 per $1

So instead of getting ₱59.08 per dollar, the payer effectively delivered ₱56.43 - that difference can come from fees, exchange-rate spreads, conversion timing, or a combination.

6 common reasons your family got less

1. Exchange rate / FX spread used by the remittance provider

• Banks and remittance companies don't give you the interbank or mid-market rate. They add a "spread" (markup) to buy your USD. If the sender used a consumer service, the provider may have applied a lower PHP-per-USD conversion (e.g., ₱56.43) instead of the ₱59.08 you expected.
• Check BSP reference rates to see the market level, then compare the remittance provider's payout rate.

2. Fixed fees and percentage fees deducted (sender or receiver)

• Some providers deduct a fixed fee (e.g., $10–$30) before conversion. If $20 was taken as a fee and the remainder was converted, that lowers the peso total. Other providers convert $1,000 but then deduct local payout fees or "correspondent bank fees" before crediting the recipient.

3. Intermediary / correspondent bank charges (for bank transfers)

• If the money moved by SWIFT between banks, intermediary banks may take fees. If the transfer was sent as "BEN" (beneficiary pays fees) or "SHA" (shared fees), the receiving party may get less because those correspondent fees were subtracted from the amount that arrived.

4. Currency was converted earlier (sender paid in pesos or used a local conversion)

• If the sender paid from a local non-USD account or the provider converted funds in a different country/time, the rate and timing might differ. For example, the sender's bank might convert PHP->gt;USD first (or vice versa) using its rates.

5. Different payout channel: cash pickup vs bank deposit

• Cash pickup services (Western Union, LBC, Cebuana) and bank deposit services may use different payout rates. Cash pickup often has a larger spread because of operational costs.

6. Timing and rate movements between sending and crediting

• Exchange rates can move. If the conversion happened at a different time (e.g., sender sent in the evening, payout processed next day), a fluctuating USD/PHP rate can cause a difference of several pesos per dollar in volatile times.

Example scenarios that produce ₱56,430

Scenario A - Fee taken before conversion

• Sender pays $1,000.
• Remittance fee = $20 (taken upfront). Amount converted = $980.
• Conversion rate used by provider = ₱57.57 ->gt; ₱980 × 57.57 ≈ ₱56,430

Scenario B - Full amount converted but spread + local fee deducted

• Sender sends $1,000.
• Provider converts at ₱56.43 per $1 (because of spread) ->gt; ₱56,430.
• This is a pure exchange-rate based shortfall (no visible fee on the receipt besides the worse conversion rate).

Scenario C - Bank transfer with intermediary fees

• Sender instructs bank to send $1,000 via SWIFT with SHA.
• Intermediary banks deduct total ₱2,650 in fees from the payment before it lands.
• Receiver gets ₱56,430.

These are simplified but show how fees + rates combine to make a big difference.

Practical steps on how you check exactly what happened

1. Ask the sender for the remittance receipt / MT103 (transfer confirmation)

• This should show gross sent amount, fees charged by sender's bank or remittance provider, and whether the conversion happened before or after sending. MT103 for bank transfers includes details of intermediaries.

2. Ask the sender which payout option they used (cash pickup or bank deposit) and the provider name (ex: Western Union, MoneyGram, LBC, Cebuana, BDO)

• Different channels have different rates and fees. If it was cash pickup, check the provider's payout rate for that day.

3. Compare the provider's posted payout rate on the day of transfer

• Remittance company pages usually show the payout amount or rate. For banks, check the FX buy/sell rates for that date.

4. Ask the receiving agent/bank for a breakdown of charges (was anything deducted locally?)

• Local payout agents may deduct handling fees. Getting a written breakdown helps escalate the case.

5. Check whether the sender used "OUR", "BEN", or "SHA" for transfer fees (for SWIFT)

• OUR: sender pays all fees (recipient gets full amount).
• BEN: recipient pays all fees (recipient gets less).
• SHA: shared (sender pays origin fees; recipient pays intermediary/receiving fees).

6. If unsure or you suspect mistakes, file a complaint with the remittance provider and keep receipts. If unresolved, escalate to BSP or the remittance company's customer service.

Tips to avoid this next time (specific for the Philippines)

• Compare total cost (fees + exchange rate) - not just one or the other

  • Use the actual payout estimate: how many pesos will your family receive after all fees? Check the provider's calculator for the Philippines (Western Union, MoneyGram, LBC, Cebuana, BDO).

• Ask the sender to select "OUR" (sender pays all transfer costs) for SWIFT transfers so intermediaries don't eat the amount - but be prepared for higher sending fees.

• Consider sending via bank remittance or a provider that advertises guaranteed payout amounts to the Philippines - some online remitters show exact PHP to be received before you confirm.

• Use providers with transparent, itemized receipts and easy agent networks (Western Union, MoneyGram, LBC, Cebuana, BDO remittance) so your family can get a clear breakdown.

• If the difference seems unusually big, request the MT103 and follow the money chain. In the Philippines, agent networks and major banks usually cooperate to trace payments if you provide full details.

What to watch for with Philippine payout partners

• Cash pickup networks like Western Union, LBC, Cebuana and MoneyGram are popular in provinces - convenient but sometimes have bigger spreads.
• Major banks (BDO, BPI, Metrobank) can offer better FX rates for bank-to-bank transfers, but SWIFT intermediary fees may apply.
• Bangko Sentral ng Pilipinas (BSP) posts reference exchange rates - good for comparing whether you got a fair retail rate.

If you need to recover the missing amount

• Collect receipts (sender & receiver), time stamps, and agent names.
• Contact the remittance provider's Philippine customer service or the sending bank. Provide transaction numbers and MT103 if available.
• If the provider doesn't resolve it, you can bring the case to BSP's consumer assistance channels or file a complaint with the remittance company's local office.

Thoughts

Most of the time the difference comes from a combination of an unfavorable exchange rate (spread) and fees taken somewhere along the transfer chain. The fastest way to get answers is to ask for the sender's detailed receipt or MT103 and compare that with the remittance company's posted payout for that date. Armed with those documents, you can ask for either a refund of unfair charges or a clear explanation - and avoid the surprise next time by choosing the better-cost option.