How to pay suppliers in the Philippines from the US: pesos or dollars
To pay a supplier in the Philippines, collect its account name, account number, bank and SWIFT code, then send US dollars by SWIFT wire to its FCDU dollar account, or pesos as a local payout over InstaPay or PESONet. Pay in the invoice currency and send dollar wires with OUR charges so the full amount arrives. This guide covers the currency choice, details to collect, rails, cut-offs, holidays, published fees and returns.
- Section 20 of the BSP foreign exchange manual lets Philippine exporters sell, retain or deposit their foreign currency earnings in the Philippines or abroad.
- Philippine banks hold business dollars in foreign currency deposit units (FCDUs) under Republic Act No. 6426, so a supplier often has separate peso and dollar accounts.
- VAT zero-rating of certain services requires payment in acceptable foreign currency accounted for under BSP rules, as quoted by the Supreme Court in G.R. No. 152609.
- InstaPay settles peso transfers in real time, 24/7, with a limit of PHP 50,000 per transaction; PESONet handles larger and bulk payments on banking days.
- BPI charges a minimum of USD 6.50 to credit an inward SWIFT remittance to a dollar account and PHP 150 to a peso account, net of other banks' fees.
- Proclamation No. 1006 sets regular holidays on 30 November, 25 December and 30 December 2026, and special non-working days on 2 November, 8 December, 24 December and 31 December.
PHP or USD invoices: which should you pay?
Start with the currency on the supplier's invoice. Philippine suppliers invoice foreign buyers in Philippine pesos (PHP) or US dollars (USD), and the choice decides which account you pay, which rail you use and who carries the exchange rate risk.
Philippine rules give the supplier a free choice. Under Section 20 of the Bangko Sentral ng Pilipinas (BSP) Manual of Regulations on Foreign Exchange Transactions, export earnings may be used freely and, at the exporter's option, sold for pesos, retained, or deposited in foreign currency accounts in the Philippines or abroad. Section 1 applies the same freedom to service and other non-trade receipts (BSP Manual of Regulations on Foreign Exchange Transactions). Philippine banks hold business dollars in foreign currency deposit units (FCDUs), the units authorized to take foreign currency deposits under Republic Act No. 6426.
Service suppliers can have a tax reason to ask for dollars. The Tax Code zero-rates VAT on certain services only where the consideration is paid in acceptable foreign currency and accounted for under BSP rules, as quoted by the Supreme Court in Commissioner of Internal Revenue v. American Express International, G.R. No. 152609, 29 June 2005 (Supreme Court decision). A service supplier that relies on zero-rating may therefore ask for a dollar or other foreign currency payment even when it could take pesos.
| Invoice currency | What you send | What the supplier receives | Who carries the exchange rate risk |
|---|---|---|---|
| PHP | Pesos, converted by your provider before sending | The exact peso amount, if paid as a local peso payout | You, the buyer |
| USD, supplier has an FCDU dollar account | US dollars by SWIFT wire | Dollars, less any intermediary and receiving fees | The supplier |
| USD, supplier has only a peso account | US dollars by SWIFT wire | Pesos, converted by the supplier's bank on arrival | The supplier, at the bank's rate |
Sources: BSP Manual, Sections 1 and 20; G.R. No. 152609; as published on 29 October 2026. The BSP has amended the Manual since the version cited; confirm current rules with the supplier's bank.
If you buy services and the supplier zero-rates its VAT, agree a foreign currency invoice and pay it in that currency. For goods, a peso invoice removes conversion from the supplier's side and can support a sharper price; a dollar invoice keeps your books in dollars. Settle the currency in the contract, not invoice by invoice.
Details to collect from a Philippine supplier
Collect the payment details once, in writing, on the supplier's letterhead or invoice. Philippine accounts are identified by the account number at a named bank and branch, and an international wire also needs the bank's SWIFT code, the 8 or 11 character code that identifies a bank on the SWIFT network. Ask which account to use: many Philippine companies hold a peso account and a separate FCDU dollar account.
| Detail | Example or format | Why it matters |
|---|---|---|
| Account name | The supplier's registered name, exactly as on the bank account | Name mismatches lead to queries or returns |
| Beneficiary address | Full street address in the Philippines | Required on SWIFT wires |
| Account number and currency | PHP account or USD FCDU account | A dollar wire to a peso account is converted on arrival |
| Bank name, branch and SWIFT/BIC code | 8 or 11 characters | Routes the wire to the right bank |
| Intermediary (correspondent) bank | The US bank the supplier's bank uses for dollars, if it names one | Some US banks ask for it |
| Tax identification number (TIN) and registration | From the supplier's invoice and SEC or DTI certificate | Lets you match the bank details to the invoicing company |
Field list compiled by the Helm Editorial Team, as published on 29 October 2026.
The SEC is the Securities and Exchange Commission, which registers corporations; sole proprietors register with the Department of Trade and Industry (DTI). A correspondent bank is a bank that holds an account for another bank and settles payments in its currency. Treat any change of bank details as a fraud risk, and confirm new details by calling a contact you already know. Our SWIFT code lookup helps confirm the bank code.
How the money moves: SWIFT, InstaPay and PESONet
There are two ways to get money from a US account to a Philippine supplier.
SWIFT wire. Your bank sends an international wire over SWIFT, the global messaging network banks use for cross-border payments, to the supplier's bank. The dollars settle in the United States on Fedwire, the Federal Reserve's system for large-value transfers, through the Philippine bank's correspondent. Every SWIFT wire carries a charges instruction: OUR means you pay all bank charges, SHA means each side pays its own bank, and BEN means all charges come out of the amount sent.
Local peso payout. A provider with access to Philippine rails converts your dollars and pays the supplier's peso account as a domestic transfer. Wise, for example, lists PHP among the currencies it sends to, within the Philippines (Wise). The domestic leg runs on one of two services under the BSP's National Retail Payment System framework. InstaPay is a real-time service for low-value payments, available 24/7 including weekends and holidays, with a limit of PHP 50,000 per transaction that Security Bank attributes to a BSP mandate (Security Bank, InstaPay). PESONet is an account-to-account service for bulk, recurring and non-time-sensitive payments, processed on banking days (PSBank, PESONet and InstaPay FAQs).
| Route | Currency the supplier receives | Timing | Notes |
|---|---|---|---|
| SWIFT wire to an FCDU dollar account | USD | Credited on a Philippine banking day | Standard route for dollar invoices |
| SWIFT wire to a peso account | PHP, converted on arrival | Credited on a Philippine banking day | Supplier's bank sets the rate |
| Local peso payout over InstaPay | PHP | Real time, 24/7 | Up to PHP 50,000 per transaction |
| Local peso payout over PESONet | PHP | Banking days; at PSBank, transfers made by 11 a.m. are processed the same day | Suited to larger and bulk payments |
Sources: Security Bank, InstaPay; PSBank, PESONet and InstaPay FAQs; Wise; as published on 29 October 2026. Cut-offs vary by bank.
Some Philippine suppliers accept stablecoins such as USDC and USDT. BSP Circular No. 1108 states that virtual assets are not issued or guaranteed by any jurisdiction and do not have legal tender status, and virtual asset service providers need a BSP Certificate of Authority (BSP Circular No. 1108). A supplier paid this way needs a licensed provider to convert and must account for the receipt; for VAT zero-rating it still needs a foreign currency payment accounted for under BSP rules.
Helm sends international payments to suppliers by SWIFT, and by local rails in the supplier's currency where available, from the buyer's own account, with the rate, fee and expected arrival shown before you send.
Cut-offs and holidays
On the US side, the Fedwire Funds Service day opens at 9:00 p.m. Eastern Time (ET) on the previous calendar day and closes at 7:00 p.m. ET, with a 6:45 p.m. ET cut-off for customer transfers (Federal Reserve Financial Services). Your bank's own cut-off for international wires is earlier.
On the Philippine side, PESONet and SWIFT credits wait for a banking day, while InstaPay runs through weekends and holidays. Proclamation No. 1006 of 3 September 2025 sets the 2026 regular holidays and special non-working days (Proclamation No. 1006). The last two months of the year are crowded, so check with the supplier's bank whether it processes on special non-working days.
| Date | Closed or affected | Plan for |
|---|---|---|
| Monday 2 November 2026 | Philippines (All Souls' Day, special non-working day) | SWIFT and PESONet credits may move to 3 November |
| Wednesday 11 November 2026 | US Fedwire (Veterans Day) | Send US wires by 10 November |
| Thursday 26 November 2026 | US Fedwire (Thanksgiving) | Send US wires by 25 November |
| Monday 30 November 2026 | Philippines (Bonifacio Day, regular holiday) | Credited the next banking day |
| Tuesday 8 December 2026 | Philippines (Immaculate Conception, special non-working day) | Allow an extra day |
| 24 and 25 December 2026 | Philippines (Christmas Eve and Christmas Day); US Fedwire on 25 December | Send year-end payments by 22 December |
| 30 and 31 December 2026 | Philippines (Rizal Day; Last Day of the Year) | Pay December invoices before 30 December |
| Friday 1 January 2027 | US Fedwire (New Year's Day) | Send US wires by 31 December |
Sources: Proclamation No. 1006, s. 2025; Federal Reserve holiday schedule K.8; as published on 29 October 2026. Eid holidays are set by separate proclamation.
Fees as published
A payment to the Philippines can carry four costs: your provider's sending fee, the exchange rate if you convert, intermediary bank deductions on a SWIFT wire, and the supplier's receiving charges. Philippine banks publish their inward remittance charges. The example below is BPI's.
| Item | Published charge | Who pays it |
|---|---|---|
| Inward SWIFT remittance credited to a USD account (BPI) | USD 6.50 minimum | Supplier |
| Inward SWIFT remittance credited to a PHP account (BPI) | PHP 150.00 minimum | Supplier |
| Documentary stamp tax on credits to a PHP account (BPI) | PHP 0.60 for every PHP 200 or fraction | Supplier |
| InstaPay credit transaction sent from a business account (Security Bank) | PHP 20 | Sender |
| Intermediary banks | Deducted in transit on SHA and BEN wires | Whoever the charges code assigns |
| Helm | Agreed in writing before the account opens | Buyer |
Sources: BPI, inward remittance fees; Security Bank, InstaPay; as published on 29 October 2026. BPI states that other banks in the payment chain may charge separate fees and that proceeds are credited net of all fees and taxes.
Because BPI credits proceeds net of all fees and taxes, a wire sent with SHA charges arrives short twice: once for intermediary deductions and again for the receiving charge. Send dollar wires with OUR charges when the supplier must receive the full amount, and compare the all-in cost, rate plus fee, for peso payouts. Helm agrees pricing with each business before the account opens; speak to the team.
Common reasons payments are delayed or returned
| Problem | What happens | How to prevent it |
|---|---|---|
| Dollars sent to a peso account | Converted on arrival at the bank's rate | Ask for the FCDU account number for dollar invoices |
| Peso payout above PHP 50,000 | Exceeds the InstaPay limit per transaction | Use a provider that pays larger amounts over PESONet |
| Account name does not match | Bank queries or returns the payment | Use the registered name exactly as on the account |
| Missing invoice reference | Supplier cannot match the payment | Quote the invoice number |
| Wire sent as SHA or BEN | Supplier receives less than the invoice | Use OUR charges |
| Sent before a holiday cluster | Credited days later | Check the December calendar early |
Sources: Security Bank; BPI; Proclamation No. 1006; as published on 29 October 2026.
If a wire has left but not arrived, ask your bank for the UETR (Unique End-to-end Transaction Reference), the tracking code that stays the same along the whole SWIFT chain, and send it to the supplier with your payment confirmation.
Step by step: paying a supplier in the Philippines
- Agree the currency. Set PHP or USD in the contract, and who pays bank charges; for zero-rated services, agree a foreign currency invoice.
- Collect details once. Get the account name, address, account number for the invoice currency, bank, branch and SWIFT code in writing.
- Verify by phone. Confirm the details with a known contact before the first payment and after any change.
- Choose the rail. Pay dollar invoices by SWIFT wire to the FCDU account; pay peso invoices as a local payout.
- Check the quote. Compare the rate, fee and expected arrival before you confirm, and send dollar wires with OUR.
- Time it. Send before your provider's cut-off and away from Philippine and US holidays.
- Send proof. Share the UETR and SWIFT confirmation, or the payout reference, with the invoice number.
- Reconcile. Match the payment to the invoice and keep both for your records.
For the supplier's account options, see USD business accounts in the Philippines. For another corridor with a real-time local rail, read how to pay suppliers in Mexico.
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Open accountQuestions
What is the best way to pay a supplier in the Philippines from the US?
For dollar invoices, send a SWIFT wire to the supplier's FCDU dollar account with OUR charges. For peso invoices, a local payout in pesos over InstaPay or PESONet arrives as a domestic transfer and avoids an inward SWIFT charge.
What bank details do I need to pay a Philippine supplier?
You need the account name exactly as on the account, the supplier's address, the account number for the invoice currency, and the bank's name, branch and SWIFT code. Ask whether to use the peso account or the FCDU dollar account.
Can a Philippine supplier receive US dollars?
Yes. Philippine banks offer dollar accounts through their foreign currency deposit units, and BSP rules let exporters keep their foreign currency earnings in the Philippines or abroad rather than convert them.
Why does my Philippine service provider want to be paid in dollars?
The Tax Code zero-rates VAT on certain services only where the consideration is paid in acceptable foreign currency and accounted for under BSP rules. A provider relying on zero-rating therefore needs a foreign currency payment.
What is the difference between InstaPay and PESONet?
InstaPay is a real-time service for low-value peso transfers, available 24/7 with a limit of PHP 50,000 per transaction. PESONet is an account-to-account service for bulk, recurring and larger payments, processed in batches on banking days.
How long does a payment to the Philippines take?
A peso payout over InstaPay is credited in real time. A PESONet payout is processed on a banking day, the same day if sent before the bank's cut-off. A SWIFT wire is credited on a Philippine banking day after it clears the US and the correspondent bank.
Why did my Philippine supplier receive less than I sent?
Intermediary banks can deduct fees from a wire sent with SHA or BEN charges, and Philippine banks credit inward remittances net of their own charges; BPI's minimum is USD 6.50 for a dollar account. Sending with OUR charges covers the transfer fees.
Can I pay a Philippine supplier in USDC?
BSP Circular No. 1108 states that virtual assets do not have legal tender status, and providers that exchange or transfer them need a BSP Certificate of Authority. A supplier that accepts USDC needs a licensed provider to convert it, so agree this in writing first.
Which Philippine holidays affect payments at the end of 2026?
Proclamation No. 1006 lists Bonifacio Day on 30 November, Christmas Day on 25 December and Rizal Day on 30 December as regular holidays, and 2 November, 8 December, 24 December and 31 December as special non-working days.
References
- Bangko Sentral ng Pilipinas: Manual of Regulations on Foreign Exchange Transactions (version filed with the WTO)
- Supreme Court of the Philippines: CIR v. American Express International, G.R. No. 152609 (29 June 2005)
- Security Bank: InstaPay for business (DigiBanker cash management)
- PSBank: PESONet and InstaPay FAQs
- BPI: Inward remittance fees
- Proclamation No. 1006, s. 2025: regular holidays and special days for 2026
- Wise: What currencies can I send to and from?
- Federal Reserve Financial Services: Fedwire Funds Service operating hours
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.