Does the receiver pay a fee to claim a padala, or does the sender pay everything?
Last updated: 2026-07-12 · Educational content; not legal advice.
Short answer
Who bears the cost depends on the product, but every charge must be disclosed to you before you pay. Under RA 11765 (2022) and BSP's disclosure rules for Remittance and Transfer Companies (BSP Memorandum M-2021-032; MORB §298), a remittance company must tell you in writing the sending fee, the exchange rate applied, and the exact amount the recipient will actually receive — so any amount deducted on the receiving end has to be shown up front. If the recipient was charged something you were never told about, that undisclosed charge can be demanded back. Domestic peso-to-peso padala are commonly sender-paid with the recipient collecting the full amount, but confirm the net figure before you send.
Primary sources
- RA 11765 (Financial Products and Services Consumer Protection Act, 2022) ↗
- BSP Memorandum M-2021-032 — Disclosure & Transparency of Remittance and Transfer Companies ↗
- MORB §298 — Disclosure of Remittance Charges and Other Relevant Information ↗
- BSP Circular 1160 (2022) — Regulations Implementing RA 11765 ↗
Frequently asked
Can a padala be 'receiver-pays'?
Some services deduct a charge from the amount received. That is allowed only if it was disclosed to you before you paid — you have the right to know the exact net amount the recipient will get (M-2021-032; MORB §298).
The recipient got less than I sent — is that legal?
Only if the deduction was disclosed. If it was an exchange-rate margin or a receiving fee you were never shown, you can demand the difference and escalate to the BSP under RA 11765.
Can I see the exchange rate before I send?
Yes. For any currency conversion you have the right to be shown the rate applied and the resulting amount before you pay — see the fee-disclosure answer.
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