What is the true cost of a padala? What fees can a remittance agent charge?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
The true cost of a padala is not just the posted sending fee — it is the sending fee plus any exchange-rate margin (the gap between the rate you are given and the real market rate) plus any charge deducted from the recipient. Under RA 11765 (Financial Products and Services Consumer Protection Act, 2022) and BSP's disclosure rules for Remittance and Transfer Companies (BSP Memorandum M-2021-032, and MORNBFI §§602-P/702-N as amended by Circular 1048), a remittance company must give you full and transparent disclosure so you can compare the total cost before you pay. You have the right to be told, in writing, the fee, the exchange rate applied, and the exact amount the recipient will get. If a charge was never disclosed, you can demand it back and escalate to the BSP.
Primary sources
- RA 11765 (Financial Products and Services Consumer Protection Act, 2022) ↗
- BSP Circular 1160 (2022) — Regulations Implementing RA 11765 ↗
- BSP Memorandum M-2021-032 — Disclosure & Transparency of Remittance and Transfer Companies ↗
- MORB §298 — Disclosure of Remittance Charges and Other Relevant Information ↗
Frequently asked
What must a remittance agent disclose before I pay?
The sending fee, the exchange rate applied, any other charges, and the exact amount the recipient will receive. BSP's rules for Remittance and Transfer Companies (MORNBFI §§602-P/702-N as amended by Circular 1048, 2019, and Memo M-2021-032) require full disclosure and utmost transparency so you can make an informed comparison.
Is the exchange-rate margin a hidden fee?
It is a real cost even though it is not labelled a 'fee.' The margin is the difference between the rate you are offered and the market rate. Under RA 11765's right to disclosure and transparency, the rate applied must be disclosed to you; an undisclosed or misrepresented rate is a market-conduct issue you can raise with the BSP.
Does LabanPH quote M Lhuillier's exact fees?
No — remittance fees change and vary by amount, corridor, and channel, so we do not publish a specific peso figure. Ask the agent for the written fee and rate before you pay, keep the receipt, and use our comparator to sanity-check the total cost.
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