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Wells Fargo ExpressSend® Service - $8 or $70+ ?


Jim in Cebu

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Jim in Cebu
Wells Fargo ExpressSend® Service - $8 fee to transfer $3,000 -- or is it $70+ ?

 

I have heard about Wells Fargo ExpressSend® Service in the past, but I never checked it out.  However, with it being mentioned in another current thread, curiosity got the best of me and I just did a quick check on it.  Here's what I found:  (Ref: https://www.wellsfargo.com/per/intl_remittance/cost-estimator?user=asia ) (This research was done on Wednesday, Sept 25, 2012, about 2PM.)

 

For benchmark purposes, Google lists the current exchange rate as USD1:PHP43.52.

 

Wells Fargo ExpressSend® Service costs USD 8 to send USD 3,000 to the Philippines.  Sounds good, doesn't it?

 

However, in the Philippines, the money can only be withdrawn in PHP. <frown>

 

Doing an account-to-account transfer (which is the least expensive transfer method), the following are the exchange rates to RP participating banks

> BPI 42.53

> BDO 42.53

> Metrobank 42.53

 

(A few minutes ago, BDO was 42.03 or something like that -- which implies that rates fluctuate and are updated frequently.  It should also be noted that these amounts are "estimated" by WF, so YMMV from the estimate you see on their website.  Ref:    https://www.wellsfargo.com/per/intl_remittance/cost-estimator?user=asia#estimateButton )

 

As disclosed in a WF footnote:  "1 For transfers involving conversion of funds to a foreign currency, Wells Fargo retains as revenue, in addition to the transfer fee, any difference between the rate paid by Wells Fargo to buy the currency and the foreign exchange rate provided to you. Foreign exchange rates available from Wells Fargo may vary from those available from other providers."

 

Account-to-cash and cash-to-cash estimated costs were higher than the account-to-account method used in this review -- so this is the best case scenario.

--

 

> For comparison purposes, Mims, a local money changer near Robinsons @ Fuente Osmena, is currently offering PHP 43.45 -- PHP 0.92 more per USD (or PHP 2,760 more per USD 3000 transaction -- which is the equivalent of about USD 63 or so! (and this doesn't include the WF USD 8 transfer fee!).

--

 

In summary, 

 

For USD 3,008 ($3000 funds + $8 transfer fee), Wells Fargo ExpressSend® Service will provide you with PHP 127,591.20 (using the least expensive account-to-account method).

 

For USD 3,008, a local money exchanger, will provide you with PHP 130,697.60 -- a difference of PHP 3,106.40, which (@43.45) is USD 71.49.

 

As an alternative to using Wells Fargo ExpressSend® Service (or similar high priced services), you may wish to consider doing wire transfers from your US bank to your RP bank, having the received money deposited directly to a USD account at your RP bank.  Many US banks charge $25-$35 to originate the transfer, and RP banks charge $5 or so to receive it.  This is about 1/2 the cost of the ExpressSend Service for a USD 3,000 transfer -- and, since wire fees are "flat rate", the savings would be considerably more for the transfer of larger amounts but would have less savings for smaller amounts.

 

Or to avoid all fees, if you are comfortable carrying cash between the US and RP, bring USD with you and deposit them in a local dollar account at an RP bank.  Then withdraw the USD as needed and convert it at a more favourable rate at a money changer.

--

 

Here's a challenge for another forum member to research:  What are the least expensive US banks (which are readily available to most forum members) to originate wire transfers from?  And, what RP banks are the least expensive to receive USD wire transfers for direct deposit into a USD account?
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smokey

its not well fargo that screws you its at this end... i have a pma acct so its no charge to send but on this end the fee is point 8 tenths of a peso per dollar ... so if the rate is 43 when you pick it up they will give you 42.2  its more fun in the philippines ///  as for wire wells charges 14 dollars any amount and if its repetitive you get a pin and code and can do it by phone without a human //// also note wire in reality takes up to 4 days ... express send is like a western union it takes 5 min... when you need the money its there ....different products for different reasons... need thousands wire... need 300 dollars express send also express send mean you dont need a bank acct here 

Edited by smokey
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Jim in Cebu

Hi Smokey,

 

Thanks for your comments.

 

its not well fargo that screws you its at this end... i have a pma acct so its no charge to send but on this end the fee is point 8 tenths of a peso per dollar ... so if the rate is 43 when you pick it up they will give you 42.2  its more fun in the philippines 

 

I didn't know (or really care) how the charges are split between WF and the receiving bank in RP.  I was just interested in whether it was a cost-effective approach to moving money.

 

as for wire wells charges 14 dollars any amount and if its repetitive you get a pin and code and can do it by phone without a human //// also note wire in reality takes up to 4 days

 

Excellent point about the time delay.

 

Regarding the WF wire transfer cost, I also have a WF PMA account, but in June 2012 the fee I was charged was $30, and in October 2012 the fee I was charged was $35.  I wonder why there is a difference between the $14 you are being charged and the higher amount I am being charged by WF.  

 

(If there are any other forum members with WF PMA accounts and have done wire transfers, what were you charged?)

 

express send is like a western union it takes 5 min... when you need the money its there ....different products for different reasons... need thousands wire... need 300 dollars express send also express send mean you dont need a bank acct here

 

Another excellent point about matching products to specific needs.

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senseless

Use bitcoin and pay a 0.0005 bitcoin transaction fee then sell locally with localbitcoins.com. I haven't paid any fees to a bank in quite awhile.

Edited by senseless
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smokey

Hi Smokey,

 

Thanks for your comments.

 

its not well fargo that screws you its at this end... i have a pma acct so its no charge to send but on this end the fee is point 8 tenths of a peso per dollar ... so if the rate is 43 when you pick it up they will give you 42.2  its more fun in the philippines 

 

I didn't know (or really care) how the charges are split between WF and the receiving bank in RP.  I was just interested in whether it was a cost-effective approach to moving money.

 

as for wire wells charges 14 dollars any amount and if its repetitive you get a pin and code and can do it by phone without a human //// also note wire in reality takes up to 4 days

 

Excellent point about the time delay.

 

Regarding the WF wire transfer cost, I also have a WF PMA account, but in June 2012 the fee I was charged was $30, and in October 2012 the fee I was charged was $35.  I wonder why there is a difference between the $14 you are being charged and the higher amount I am being charged by WF.  

 

(If there are any other forum members with WF PMA accounts and have done wire transfers, what were you charged?)

 

express send is like a western union it takes 5 min... when you need the money its there ....different products for different reasons... need thousands wire... need 300 dollars express send also express send mean you dont need a bank acct here

 

Another excellent point about matching products to specific needs.

i use express send to send the children money for house maint... and she picks it at any pawn shop LULER ??   or you can send to a bank BPI ... for larger amounts i send a wire to myself... it leaves wells same day but takes 3 to 4 days to make it to cebu for some reason then debit my acct 14 dollars.. 

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