Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18 Congress
First Regular Session

35
HOUSE BILL NO.

Introduced by: HON. LORNA C. SILVERIO

EXPLANATORY NOTE

Protection of consumer rights is a worldwide concern. The government must see to it that
the rights of all consumers are respected and protected against market abuses and social
injustices which undermine these rights. Moreover, we believe that strengthening these rights
will also lead to more consumer confidence and eventually translate to stronger consumer
spending- a prime mover of our economy.

In this regard, the use of credit cards has been very popular among our citizens and has
become more widespread. However, no matter how simple and easy it is to secure a credit card,
its usage has not been without its challenges. In particular, it has been the practice of some
merchandising stores and service establishments to charge a different higher price for items
bought using credit cards; or to limit bargain sale items and services to those made with cash
purchases. It is obvious that businessmen are passing the cost of processing fees charged to them
by credit card companies to the consumers.

This does not only burden consumers, but in fact discriminates against those who cannot
pay in cash upon purchase. The consumer must pay the price indicated in the price tag as to no
distinction should be made as to the mode of payment, be it cash or charge, as this is the right of
the consumer.

L ‘The measure being proposed is to level the playing field between a cash and a card
carrying consumer. Any business has the right to take the necessary steps to ensure profitability
but never at the expense of the consumers. This intends to promote fair business practices for the
mutual benefit and best interest of both the business community and consumers. After all, no
business will prosper without the consumer, as they say, is King. This bill intends to make the
business sector understand and accept this fact.

In view of the foregoing, approval of this bill is earnestly sought.

LORNA C. SILVERIO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
18 Congress

First Regular Session

HOUSE BILLNO. 3504

Introduced by: HON. LORNA C, SILVERIO

AN ACT PROHIBITING MERCHANDISING STORES AND SERVICE
ESTABLISHMENTS FROM CHARGING MORE THAN THE CASH RETAIL PRICE OF
GOODS AND SERVICES PURCHASED USING CREDIT CARDS, DEBIT CARDS OR
SIMILAR METHODS AND PRESCRIBING PENALTIES FOR ANY VIOLATION
THEREOF

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
Assembled:

SEC 1. Title. This Act shall be known as the “CREDIT AND DEBIT CARD
OPTIMIZATION ACT”.

SEC 2. Declaration of State Policy. It is hereby declared the policy of the State to establish
an effective system that will protect the consumer from abuses by any merchant, business
entity, or any similar establishments in connection with the usage of Credit or Debit cards or
the so called “Plastic Money”.

SEC 3. Coverage. This Act shall apply to all merchants, business establishments, and retail
stores who charges additional percentages when using credit or debit cards during the
purchase of a certain item or as payment for a service rendered.

SEC 4, Penalties . 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 1 (one) year or a fine of
not less than Twenty Thousand Pesos (Php 20,000.00) but not more than one Hundred
Thousand Pesos (100,000.00) or both at the discretion of the court. In case of a partnership,
association, corporation or any 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
the sentence, be deported immediately without further proceedings in the Bureau of
Immigration.


SEC 5. Separability Clause. If any provision of this Act shall be held unconstitutional or
invalid, the other provisions not otherwise affected shall remain in full force and effect.

SEC 6. Repealing Clause. All laws, presidential decrees, executive orders, ordinances, rules
and regulation, and other issuances or part thereof which are inconsistent with this Act, are
hereby repealed or modified accordingly

SEC 7. Effectivity. This Act shall take after fifteen (15) days after its publication in the
Official Gazette or in newspapers of general circulation.