THIRTEENTH CONGRESS OF TKE REPUSLIC ) 
1 
6 MR-6 
P435 
OF THE PHILlpPINES 
Second Regular Session 
1 
L 
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BY :
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S. B. No. 
sENA’?2 2 2 0 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Automated Teller Machines (ATMs) benefit the public by providing them with 
convenient access to cash wherever and whenever the need arises. With the advancement in 
technology, some banks, through arrangements with other banks or ATM affiliates, now allow 
their clients access to other banks’ ATMs. In addition, other transactions such as deposits, hnd 
transfers, and bill payments, which have traditionally been done inside banks’ premises, can now 
be done through the use of ATMs. 
All these convenience, however, come with a price. Some financial institutions charge 
their client for ATM transactions without the latter even being aware of the amount of the 
change, much less the fact of the charge, until he receives his periodical bank statement. By then, 
it will have been too late for him to take steps to avoid the charge. 
This bill seeks to protect ATM users from hidden charges by requiring financial 
institutions to inform their clients, either by prior written notice or notice on the screen of the 
ATM prior to the completion of the transaction, of the fee that they may incur should ‘they chose 
to undertake a particular ATM transaction. It also seeks to restrict the possible transaction fees 
that such financial institutions may charge for certain ATM transactions. 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF TI3E PHILIPPINES 
1 
6 MI? -6 Pa:35 
Second Regular Session 
1 
SENATE 
f#g&vEDmpy:-y 
S. B. No. 
0 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
REQUIRING CERTAIN FINANCIAL INSTITUTIONS TO POST TRANSACTION FEES 
FOR EACH AUTOMATED TELLER MACHINE TRANSACTION; AND RESTRtCTING 
TRANSACTION FEES FOR AUTOMATED TELLER MACHINES. 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Short Title. - This Act shall be known as the “ATM Fee Regulatory Act of 
2006“. 
SECTION 2. Declaration of Policy. - It is the policy of the State to promote the general 
welfare of the people. Pursuant to this policy, this Act seeks to uphold the people’s right to be 
informed of hidden ATM fees before they are unceremoniously charged with the same. 
SECTION 3. DeJinition of Terms. -For purposes of this Act: 
(A) “ATM’ means an automated teller machine. 
(B) “Financial institation” means a national bank, savings bank, savings and loan 
association, federally chartered credit union, credit union and any entity that 
owns or operates an automated teller machine. 
SECTION 4. Fee Disclosure Required - A financial institution shall disclose the total 
transaction fee or surcharge to be imposed for each transaction on the screen of the ATM prior to 
the completion of the transaction. The customer shall have the right to cancel the transaction 
after the fee or surcharge is disclosed. 


A financial institution shall provide written notice to its account holders that a fee may be 
imposed when the account holder uses ATMs owned or operated by another financial institution 
or any national, regional or local ATM network whenever a card, code or other means of ATM 
access is issued by the financial institution for the purpose of initiating ATM transactions. 
SECTION 5. Fee Restrictions. - The following fee restrictions shall apply to all ATMs 
and ATM transactions under this Act: 
(A) Screen display as prerequisite for fee. No customer shall be liable to pay any fee 
or surcharge to a financial institution for an ATM transaction at an ATM screen 
unless the fee or surcharge is displayed on the ATM screen prior to the 
transaction. 
(B) Telephone transactions. No customer shall be liable to pay any fee or surcharge 
to any financial institution for any ATM transaction initiated via telephone. 
(C) Single fee per transaction. No customer shall be billed for more than one fee per 
ATM transaction regardless of the number of financial institutions involved in 
the transaction. 
(D) Cash dispensing requirement. No customer shall be liable to pay an ATM fee or 
surcharge to a financial institution that does not dispense cash at all of the 
institution's branch locations. 
SECTION 6. SeparabiZify Clause. - If any provision, or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 7. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
with the provisions of this act is hereby repealed, modified or amended accordingly. 


SECTION 8. Esfectivity. - This Act shall take effect fifteen (1 5) days after its publication 
in at least two (2) newspapers of general circulation. 
Approved, 
lrgs