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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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Second Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
In response to numerous complaints about additional surcharges in transactions involving 
Credit/ATM/Debit Cards, the Department of Trade and Industry issued Department 
Administrative Order 10. Its main purpose is to make retail stores use only one price tag for 
every product they sell; and, the stated price on the tag should be the same for all customers, 
whether paying cash or by credit card or debit-ATM card. 
This Act is a reiteration of the policy behind the issuance of DAO 10. By protecting the 
consumers, especially those who use CrediVATMDebit Cards, against additional surcharges, we 
encourage more transactions. More transactions mean more business for retail establishments, 
and this is a big help in a troubled worldwide economy. 
DAO 10 should be given a more “permanent” status as a legislative act, rather than in its 
present form. This would ensure stability in its enforcement. This Act also increases the penalties 
provided in the order and it also enumerates some of the more “popular” ways by which the 
DAO 10 was circumvented by some scheming retailers. 


FOURTEENTH CONGRESS OF THE REPUBLIC) 
Second Regular Session 
OF THE PHILIPPINES 
Introduced by, Senator Miriam Defensor Santiago 
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CONSUMER PRODUCTS OR SERVICES 
AN ACT PROHIBITING THE IMPOSITION OF A SURCHARGE, EXTRA CHARGE OR 
ADDITIONAL CHARGE IN THE .USE OF CREDIT/AUTOMATED TELLER MACHINE 
(ATM)/DEBIT CARDS FOR PAYMENT OF PURCHASES OF 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Policy. It is the policy of the State to protect the interests of the consumer, 
promote his general welfare and to establish standards of conduct for business and industry. 
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SECTION 2. Prohibition Against Surcharging by Retailers. All retailers who honor or 
accept credit/ATM/debit cards for payment shall not require the cardholders to pay a surcharge, 
extra charge, or additional charge over and above the price tag on the consumer goods and 
services. The prohibition under this section shall include, but not limited to, the following 
instances: 
A) Having a different price tag for cash and Credit/ATM/Debit card transactions on the 
same product or service; or 
B) Imposing additional charges for CreditlATMiDebit card transactions which are not 
reflected in the price tag; or 
C) Not giving the same discount/sale price on the same producthervice for 
Credit/ATM/Debit Card transaction as opposed to cash transaction. 
SECTION 3. Penal@ Upon conviction of a violation of this Act, a fine of One 
Hundred Thousand Pesos (Php 100,000.00) and imprisonment ofnot less than one (1) month but 
not more than six (6) months shall be imposed. A second conviction shall carry with it the 
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penalty of revocation of business permiVlicense and imprisonment of not less than six (6) months 
but not more than two (2) years. 
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modified accordingly. 
SECTION 4. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
parts thereof inconsistent with the provisions of this Act are hereby repealed, amended or 
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Approved, 
SECTION 5. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
following its publication in the Ofjcial Gazette or in two (2) newspapers of general circulation. 
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