The best exchange rate for changing Philippine Pesos is obtained by always paying with a card, as it is by far the most cost-effective option. To carry some cash, the best choice is to withdraw money from an ATM.
In other words, the best strategy to save as much money as possible during your travels would be to always pay with a card (as we will see later, in 2024, Wise card offers the best exchange rates and lowest costs in the market) and only withdraw the amount of cash you’ll need from an ATM.
Indeed, this money-saving technique may surprise you, as you may think that going to any exchange office or bank advertising “no fees” would be the logical way to exchange pesos at the current exchange rate, right? Well, not exactly! Everything comes with a cost, even paying with a card, although they might not tell you or show it upfront.
Let me share a secret: this website was created by a group of friends who have worked for several years in currency exchange offices, and honestly, changing cash is by far the worst option. To give you an idea of how bad it can be, you should know that most currency exchange operators or bank employees get discounts for exchanging currencies compared to the rates offered to customers. But even with those discounts, we never exchange cash. At most, depending on the trip, we take only a small amount for certain payments or in case it’s necessary to enter the country.
So, it’s clear: always pay with a card and only withdraw the cash you’ll need from an ATM. Now let’s see how to pay the lowest cost possible in both cases:
What is the best card for foreign payments?
Based on the study we conducted of all the cards available in the market for this year 2024, for payments in any foreign country, travel cards have lower costs than regular bank cards. Among the travel cards, the one with the lowest costs is the Wise card.
These results are valid not only for international payments in foreign currency (Wise would offer the best conditions, while other travel cards would be about 4 times more expensive on average, and regular bank cards would be about 10 times more expensive on average) but also for cash withdrawals in foreign currencies from ATMs outside your country (Wise would have the lowest fees again, while other travel cards would be about 4 times more expensive on average, and regular bank cards would be about 20 times more expensive on average).
Also, if you want to know precisely the cost differences and functionalities among the different cards available in the market in 2024, check out our comparative study in this link. As you will see, this extensive study analyzes all types of cards (debit, credit, and prepaid) and all kinds of providers (banks, fintech companies, financial institutions, etc.).
Is it necessary to bring cards from our country abroad?
As we mentioned before, it is preferable to use the Wise card instead of a regular bank card or other travel cards, as you will save a significant amount of money when paying in foreign shops and when withdrawing money from international ATMs, paying the lowest possible commissions.
Therefore, in principle, you wouldn’t need to bring any other card, but keep in mind that if you’re going to make payments such as renting a car, you will need a credit card, as most car rental companies will retain a certain amount as a deposit and only accept credit cards.
If, on the other hand, you won’t be making these types of transactions, it is recommended to leave your bank cards with higher balances at home and only carry an extra debit card for security with some balance in case of emergencies (imagine that your other card gets damaged or stolen, and you also lose your phone, leaving you with no means of payment).
Keep in mind that in case of theft, you risk fraudulent operations being performed with your cards up to their limits, while with the Wise card we recommend, your balance will never go negative, so only the deposited amount can be spent.
Furthermore, you can instantly block your Wise card from your phone, while with your bank cards, you might need to call your bank to cancel them, running the risk that they might not provide service at that time due to holidays or being outside customer service hours.
For all these reasons, when traveling, it is much better to carry a debit card like Wise with the amount of money you’ll need. If you need more, you can always top it up instantly through the mobile app, and if you want to block it due to loss or theft, you can do it instantly through the app as well. This way, you’ll have full access to your money at all times, without paying commissions for it, and minimizing the risk of theft.
As you can see, this card offers numerous features through your mobile phone, so it’s essential to keep your phone’s battery fully charged. Remember that plugs might be different in many countries. Therefore, it’s a good idea to get a universal plug adapter for traveling, as it will be useful for any trip you take in the future. In this link, we show you a very economical universal plug adapter, as well as other ideal and necessary products for traveling.
Finally, it’s important to know that if you plan to carry your credit card to pay for deposits, such as renting vehicles, before traveling, it’s advisable to inform your bank about your trip abroad and the limits you’ll need. Keep in mind that all cards have daily, weekly, and monthly limits, and while traveling, you’ll spend more than usual, so if your limits are somewhat low, you could unknowingly reach your limit and find yourself in serious trouble.
What to do if my card runs out of funds abroad?
If your debit card runs out of funds while abroad, you can still obtain money in a straightforward way:
- If you have a bank card, you can contact a family member or friend who is a customer of the same bank to make a transfer to your account. Transfers between accounts of the same institution are processed instantly, so once the transfer is completed, your card can use the new balance in your account. Another option would be to make an “immediate transfer” between accounts of different banks, as this also happens instantly.
- If you have a prepaid card like Wise, you can reload it through the app (or someone else can do it for you) and receive the money instantly.
What should I do if all my cards are stolen abroad?
If all your cards are stolen while abroad, these are your options to get by:
- Use cash you’ve withdrawn from an ATM: You can use the cash in foreign currency in case you made a withdrawal from an international ATM.
- Exchange your home currency for cash: It’s always recommended to carry some of your home country’s currency in cash in case of emergencies, as you can exchange it for pesos at currency exchange establishments if needed.
- Pay with your mobile: If your phone has NFC technology and your bank offers mobile payment service, you can link your mobile phone to your card, and even if the card is canceled or blocked due to theft, you can continue making payments with your mobile without any issues.
- Have someone from your country pay for what you need: If you only need to purchase a plane, train, or boat ticket, anyone you know in your country can pay for it online and send you the boarding pass via mobile (or you can download it from the company’s app).
- Receive money through money transfer agencies: In most tourist cities, there are plenty of such agencies. In these places, anyone you know can make a transfer from your country so that you receive the money abroad.
- Sell your jewelry to a gold buying shop: In most major cities around the world, there are numerous gold buying establishments that will easily purchase any gold jewelry from you.
- Sell your high-value belongings at a second-hand shop: The most sought-after and easily sellable items would be technological products like phones or laptops, as well as quality clothing and watches.
- Ask for money: The easiest way to get what you need would be to ask fellow countrymen who can trust you. If you need a small amount, the perfect place to ask is near vending machines, as everyone receives change there, and when you ask, people are more likely to give you something.
- Turn to your Embassy or Consulate: As a last resort, the representatives of your country can always provide assistance.
Where to find the best cash exchange rate for Philippine Pesos?
As mentioned earlier, the cheapest way to obtain cash in Philippine Pesos is by withdrawing money from ATMs.
In any case, if you want to exchange cash at a currency exchange office or bank, a margin of less than 5% compared to the official exchange rate would be a good exchange rate. A margin between 5% and 10% would be acceptable, between 10% and 15% would be a poor exchange rate, and beyond 15%, it would be exorbitant.
You can easily find the official exchange rate of the Philippine Peso to your currency on Google. By subtracting the rate they offer you from the official rate and dividing the difference by the official rate, you’ll get the percentage of margin they would be applying.
Usually, highly trafficked areas in tourist spots are the worst places to exchange currency, as they apply higher margins on exchange rates. Therefore, it’s best to search online for the location of a reputable exchange establishment instead of going to the first one you see.
In any case, if you need to change a small amount of money, it wouldn’t matter much where you change it in case of need and urgency, as it would only involve assuming a small surcharge in the worst-case scenario.
What amount of cash is sufficient for traveling?
Exchanging cash only serves two purposes:
- It serves as an emergency fund in case your card and phone are stolen, allowing you to at least get by: buy something to eat, make a phone call, travel to the embassy if you need to request a duplicate passport, and get to the airport to leave the country.
- It serves for payments in cash: at some street vendors, certain vending machines, and for paying some services such as laundries, phone booths, shopping carts that require coins, etc.
Thus, depending on the number of days you’ll be traveling and what you plan to spend in cash, you can roughly calculate how much you’ll need, which in any case shouldn’t be a large amount.
Is it possible to know if the exchange rate for Pesos will be better or worse in the future?
Official currency exchange rates, like the stock market, function as financial markets. Although there are analysts and financial gurus who make predictions, just like stock market predictions, there is no solid evidence that anyone can consistently predict future prices.
In general, foreign exchange rates tend to be relatively stable, and over the course of a month, they don’t vary much more than 5%, unless there is an unexpected economic or political event, such as the unexpected victory of an opposition party with a groundbreaking economic program.