13TH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
INTRODUCED BY HON. MANUEL B. VELAR, JR. 
EXPLANATORY NOTE 
With the meteoric growth of credit card usage in the Philippines, the possibility of fraud 
through the use of such cards has also expanded. Thus, there is now a need to enact a law that 
punishes credit card fraud. 
This bill seeks.to deter the commission of such acts and to protect banking and financial 
institutions, by providing remedies for problems arising from the commission of such deleterious 
acts. 
MANUEL B. ~ILLAR, 
JR. 


13TH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
INTRODUCED BY HON. MANUEL B. VELAR, JR. 
AN ACT PENALIZING CREDIT CARD FRAUD AND PROVIDING PENALTIES 
THEREFOR 
Be it enacted by the Senate and the House of Representatives in Congress assembled: 
SECTION 1. Title. This Act shall be known as the "Credit Card Fraud Act." 
SECTION 2. Definition. As used in this Act. 
(1) The term "Access Device" means any card, plate, code, account number, electronic serial 
number, personal identification number, or other telecommunications service, equipment, or 
instrumental identifier, or other means of account access that can be used. 
Alone or in 
conjunction with another access device, to obtain money, goods, services, or any other thing of 
value, or that can be used to initiate a transfer of funds (other than a transfer originated solely by 
paper instrument) ; 
(2) The term "Counterfeit Access Device" means any access device that is counterfeit, fictitious, 
altered, or forged, or an identifiable component of an access device or a counterfeit access 
device; 
(3) The term "Unauthorized access device" means any device that is lost, stolen, expired, 
revoked, cancelled, or obtained with intent to defraud; 
(4) The term "Produce" includes design, alter, authenticate, duplicate, or assemble; 
(5) The term "Traffic" means transfer, or otherwise dispose of, to another, or to obtain control of 
with intent to transfer or dispose oc 
(6) The term "Device-making equipment" means any equipment, mechanism, or impression 
designed or primarily used for making an access device or a counterfeit access device; 
(7) The term "Credit Card System Member" means a financial institution or other entity that is a 
member of a credit card system, including an entity, whether affiliated with or identical to the 
credit card issuer, that is the sole member of a credit card system; and 


(8) The term "Scanning Receiver'' means a device or apparatus that can be used to intercept a 
wire or electronic communication. 
SECTION 3. Prohibited acts of fraud and related activity in connection with access 
devices. Whoever - 
(1) Knowingly and with intent to defraud produces, uses, or traffics in one or more counterfeit 
access devices; 
(2) Knowingly and with intent to defraud traffics in or uses one or more unauthorized access 
devices during any one year period, and by such conduct obtains anything of value aggregating 
P2,OOO.OO or more during that period; 
(3) Knowingly and with intent to defraud, possesses fifteen or more devices which are counterfeit 
or unauthorized access devices; 
(4) Knowingly and with intent to defraud, produces, traffics in, has control or custody of, or 
possesses device-making equipment; 
(5) Knowingly and with intent to defraud, uses, produces, traffics in, has control or custody of, or 
possesses a telecommunications device; 
(6) Knowingly and with intent to defraud, uses, produces, traffics in, has control or custody of, or 
possesses - 
(a) A scanning receiver; or 
(b) Hardware or software used for altering or modifjmg telecommunications instruments to 
obtain unauthorized access to telecommunications devices 
(7) Knowingly and with intent to defraud effects transaction, with one or more access devices 
issued to another person or persons, to receive payment or any other thing of value during any 
one year period the aggregate value of which is equal or greater than P2,OOO.OO; 
(8) Without the authorization of the issuer of the access device, knowingly and with intent to 
defraud solicits a person for the purpose of - 
(a) Offering an access device; or 
(b) Selling information regarding or an application to obtain an access device; or 
(9) Without the authorization of the credit card system member or its agent, knowingly and with 
intent to defraud causes or arranges for another person to present to the member or its agent, for 
payment, one or more evidences or records of transactions made by an access device; 
SECTION 4. Penalties. The punishment for an offense under section 3 of this Act is - 


(a) A fine of P 10,000.00 or twice the value obtained by the offender, whichever is greater, 
or imprisonment of Prision Mayor in its minimum and medium periods, or both, in the case of an 
offense under section 3 (2), (3), (7), (8), or (9) of this section which does not occur after a 
conviction for another offense under either such section; 
(b) A fine of P10,OOO.OO or twice the value obtained by the offender, whichever is 
greater, or imprisonment of Prision Mayor in its minimum and medium periods, or both, in the 
case of an offense under section 3 (l), (4), (5), or (6) of this Act which does not occur after a 
conviction for another offense under either such section; and 
(c) A fine of P10,OOO.OO or twice the value obtained by the offender, whichever is greater, 
or imprisonment of Reclusion Temporal in its minimum and maximum periods or both, in the 
case of an offense under section 3 of this Act which occurs after a conviction for another offense 
under such section, 
SECTION 5. The National Bureau of Investigation (Nl3I) shall, in addition to any other 
agency having such authority, have the authority to investigate offenses under this Act. 
SECTION 6. Separability 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. Effectivity. This Act shall take effect fifteen (15) days after its publication 
in at least two (2) newspapers of general circulation. 
Approved,