Remitly's First Transfer Rate Was Amazing-Then I Saw What They Really Charge

I recently tried Remitly's promotional "first transfer" offer to send money to the Philippines. The app showed a seriously attractive exchange rate and no upfront fee - it felt like getting a steal. But when the money arrived, the actual PHP the receiver got was noticeably less than I expected. If you live in the Philippines or send money to family here, this article walks through what happened, why the advertised rate isn't the whole story, and practical tips to save on future transfers.

What Remitly advertises vs what lands in the receiver's account

Remitly often promotes "$0 fee on first transfer" or "great exchange rate" to attract new users. That's real - sometimes there is no visible transfer fee. But two things matter for the amount received in PHP:

• The exchange rate Remitly uses to convert your sending currency (e.g., USD) to Philippine peso (PHP).
• Any hidden reductions: receiving bank fees, intermediary bank charges (for SWIFT), or differences caused by payout method (bank deposit vs. cash pickup).

Even when Remitly shows "no fee," they typically make money by applying a markup to the exchange rate. So you may see a shiny rate in the app, but the effective conversion can still be worse than the mid-market rate (the true market rate you see on Google or XE).

My example

I sent USD 200 using Remitly's first-transfer promotion. On the Remitly screen it showed:

• Promoted rate: 1 USD = 56.60 PHP (example)
• No transfer fee displayed
• Estimated delivery: < 1 hour (Express)

When the money landed, my recipient's bank statement showed a credit lower than what I expected from the advertised rate. Why?

1. Remitly's displayed rate had a markup vs the mid-market rate. The mid-market might have been around 56.85 PHP at that moment. That 0.25 PHP difference per USD adds up.
2. The receiving bank or an intermediary SWIFT bank may deduct fees before deposit.
3. If cash pickup was used, the payout network's payout rate might be different than the app's displayed "estimate."

This combination explained the discrepancy: promotional zero fee + a hidden rate margin + possible payout deductions.

How to check the real cost before sending

Before you hit "send," do these quick checks:

1. Look at the "Amount recipient gets" on Remitly and compare it with a mid-market conversion (Google: "200 USD to PHP" or BSP published rate).
2. On the Remitly payment page, click "Rate and fee details" - they usually show the exact exchange rate used and any fee Remitly charges.
3. Ask the recipient for the credited amount and compare it to what Remitly promised. If there's a shortfall, ask their bank about incoming or intermediary fees.
4. Check payout method differences: bank deposit vs cash pickup vs mobile wallet. Express (card or cash pickup) can be faster, but the effective rate may be worse than an Economy bank transfer.

Useful official reference: the Bangko Sentral ng Pilipinas (BSP) publishes exchange information for the PH market - compare Remitly's rate with BSP reference rates to estimate the markup.

Common fee and margin traps to watch for in the Philippines

• Exchange rate markup: This is Remitly's main profit on many corridors. Even with "no fee," the rate can be inferior to the mid-market.
• Intermediary SWIFT fees: If the transfer routes through an intermediate bank, that bank may deduct a fee before deposit. This is common on international bank transfers.
• Receiving bank charges: Some Philippine banks may deduct processing fees for incoming international credits. Ask the receiving bank first.
• Cash pickup network rates: When using partners like LBC or Cebuana Lhuillier, the payout rate or cash-out fee structure could differ from Remitly's app estimate.
• Dynamic Currency Conversion (DCC): If the recipient is offered conversion at the payout counter, say "no" - DCC often gives poor exchange rates.

Which payout method is usually cheapest for the Philippines?

• Economy / Bank deposit: Often has a better exchange rate and fewer hidden deductions, but it can be slower (1–3 business days).
• Express / Cash pickup or debit/credit card top-up: Faster (minutes to hours) but may have higher exchange rate markup and partner fees.
• Mobile wallet deposit (when available): Depends on partner promotions; sometimes competitive, but check wallet limits and withdrawal rules.

If your priority is maximum PHP for family, try Economy bank deposit and plan ahead. If speed matters, accept a slightly worse effective rate for Express transfers.

Simple method how to calculate the effective fee

1. Note the amount you sent (in USD).
2. Note the amount the recipient actually received (in PHP).
3. Find the mid-market rate (Google "1 USD to PHP" at time of transfer).
4. Convert your sent USD to PHP using mid-market rate to get the "ideal" expected PHP.
5. Effective cost = Ideal PHP – Actual PHP received.
6. Effective percentage fee = (Effective cost / Ideal PHP) × 100

This shows the true cost of the transfer including hidden margins and external fees.

Alternatives to consider in the Philippines

• Other remittance apps: Compare Remitly with Wise (if available for this corridor), WorldRemit, and Western Union. Pricing varies by day and payout method.
• Bank-to-bank transfers: Philippine banks may charge both sending and receiving fees, and exchange rates can be poor, but for large amounts they can still be reliable.
• Pickup networks: If your recipient prefers cash, LBC and Cebuana Lhuillier are widely available in the Philippines. Compare their payout rates.
• Mobile wallets: GCash and other e-wallets sometimes accept international transfers via partner networks. Promos can make these cheaper occasionally.
• Local sender options: If you're in a country with favorable remittance promos (first-transfer discounts or bank promotions), use them but always compare the final PHP delivered.

Practical tips to avoid surprises

• Always compare the "amount recipient gets" with a live mid-market rate.
• Use bank deposit for better overall value if you can wait.
• If using cash pickup, check the cash pickup partner's local payout hours and policies.
• Ask the recipient's bank whether they deduct fees on incoming international transfers.
• Keep screenshots of the transfer receipt showing estimated amount and rate - useful for disputes.
• Consider splitting a test small transfer, especially if using a new app or payout method.

Is Remitly worth it for sending to the Philippines?

Yes - but with caveats. Remitly is convenient, fast (especially Express), and often cheaper than some banks. Their first-transfer promos are useful, but don't assume promo + no visible fee means the cheapest overall cost. For everyday senders to the Philippines:

• Use Remitly for speed and convenience, especially when family needs cash quickly.
• Use Economy transfers for lower cost when you can wait.
• Run a quick comparison with other providers (Western Union, local networks, or other remittance apps) before sending large amounts.

Remitly's offering is attractive, but the "real charge" is the exchange rate margin and any external bank fees - always check the final PHP amount, not just the flashy promo.

Quick checklist before sending with Remitly

• Check Remitly's "amount recipient gets."
• Compare to mid-market rate (Google/XE/BSP).
• Choose payout method (Economy = cheaper, Express = faster).
• Confirm no receiving bank or intermediary fees.
• Keep a screenshot of the transfer details.

If you follow those steps, you'll avoid the sting I felt when a pretty rate turned out smaller in reality. Sending money to the Philippines needs both speed and smart comparison - a good promo is great, but the true measure is the peso that lands in your family's account.