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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
First Regular Session 
HOUSE BILL NO.  ____ 
___________________________________________________________________________ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
___________________________________________________________________________ 
AN ACT  
PROHIBITING MERCHANDISING STORES AND SERVICE ESTABLISHMENTS 
FROM CHARGING MORE THAN THE CASH RETAIL PRICE OF GOODS AND 
SERVICES PURCHASED WITH CREDIT CARDS AND PRESCRIBING 
PENALTIES FOR ANY VIOLATION THEREOF 
EXPLANATORY NOTE 
Consumer rights serve not only to protect citizens from unscrupulous practices of 
erring businesses, moreover it is our belief that strengthening these rights will also lead to 
more consumer confidence and thus more robust consumer spending —a prime driver of our 
economy. 
In this regard, the use of credit cards by consumers has become wider over the years.  
However, this has not been without its challenges.  In particular, it has been the practice of 
some merchandising stores and service establishments to charge a different, albeit higher 
price, for items bought using credit cards; or to limit bargain sale items and services to those 
made with cash purchases. This means that merchants are passing on the cost of processing 
fees charged to them by credit card companies to the consumers. 
This not only burdens consumers, but in fact discriminates against those who cannot 
pay in cash upon purchase. But whether or not a consumer chooses to pay in cash or charge, 
he or she should only pay the price indicated in the price tag - no distinction should be made 
as to the mode of payment.  Such is the right of the consumer. 
This measure is thus being proposed to level the playing field.  While we 
acknowledge the right of big businesses to take the necessary steps to ensure profitability, 
this should never be taken to mean that consumers shall bear the burden of these enterprises 
in doing business.  The consumer, as they say, is king.  This measure intends to help big 
businesses understand and accept this fact. 
In light of the foregoing, urgent passage of this bill is proposed. 
   BERNADETTE “DETTE” G. ESCUDERO 
July 26, 2022
6:22 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19th CONGRESS 
First Regular Session 
HOUSE BILL NO.  ____ 
___________________________________________________________________________ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
___________________________________________________________________________ 
AN ACT  
PROHIBITING MERCHANDISING STORES AND SERVICE ESTABLISHMENTS 
FROM CHARGING MORE THAN THE CASH RETAIL PRICE OF GOODS AND 
SERVICES PURCHASED WITH CREDIT CARDS AND PRESCRIBING 
PENALTIES FOR ANY VIOLATION THEREOF 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Section 1. 
It shall be unlawful for any merchandising store or service 
establishment to charge the customers more than the actual cash retail price of the goods and 
services purchased when such purchase is done with the use of a credit card and/or to limit 
bargain sale items and services to cash purchases.  
Sec. 2. Any person who shall violate the provision of this Act shall be punished with 
imprisonment of not less than six (6) months but not more than one (1) year or a fine of not 
less than Twenty Thousand Pesos (P20,000.00) but not more than One Hundred Thousand 
Pesos (P100,000.00) or both at the discretion of the court. In case of a partnership, 
association, corporation or any other juridical person, the penalty shall be imposed on the 
president, treasurer or any other officer or person responsible for the violation. In addition, 
the license to operate the business establishment shall be suspended for six (6) months or in 
the case of recidivism, cancelled, as the case may be. If the offender is an alien, he shall, after 
service of sentence, be deported immediately without further proceedings in the Bureau of 
Immigration.  
Sec. 3. This Act shall take effect 15 days following its complete publication in the 
Official Gazette or at least two (2) newspapers of general circulation, whichever comes first. 
Approved, 
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