Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill noes?

INTRODUCED BY REPRESENT.

ALFRED VARGAS

EXPLANATORY NOTE

Gone were the days when Filipinos can conveniently access cash and bank
transaction through the Automated Teller Machines (ATMs) free of charge. Due
to the rising costs of operating the ATMs, banks have to charge the clients
whenever they use the ATM. While this is understandable, it must be assured that

the clients are informed and aware of these transaction fees whenever they use the
ATM.

‘The proposed ATM Fee Regulatory Act directs financial institutions to disclose to
their clients the bank fees by displaying the necessary data on the screen of the
ATM before the transaction is completed. Through this, we are giving bank
clients a choice to avoid these bank charges, and therefore empowering them to
control how they wish to spend their hard-earned money.

In view of the foregoing, passage of this measure is earnestly sought.

REP. ALFRED D/VARGAS
Fifth District, Quezon City


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. oa u

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
REQUIRING CERTAIN FINANCIAL INSTITUTIONS TO POST TRANSACTION
FEES FOR EACH AUTOMATED TELLER MACHINE TRANSACTION AND
RESTRICTING TRANSACTION FEES FOR AUTOMATED TELLER MACHINES

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

SECTION 1. Short Title. - This Act shall be known as the
"ATM Fee Regulatory Act.”

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. Definition of Terms. - For Purposes of this Act, the term:
(A) "ATM" means an automated teller machine; and

(B) “Financial institution" 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 toall ATMs and ATM transactions under this Act:

(A) Screen Display and Printed Receipt as Pre-requisites 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 and the fee or surcharge is
indicated in the printed receipt after 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
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. Separability Clause. - if any provision of this Act is
held invalid or unconstitutional, the same shall not affect the validity
and effectivity of the other provisions hereof.

SECTION 7. Repealing Clause. - All laws, decrees, orders, and
issuances, or portions thereof, which are inconsistent with the
Provisions of this Act, are hereby repealed, amended or modified
accordingly.

SECTION 8. Effectivity Clause. - This Act shall take effect fifteen
(15) days after its publication in the Official Gazette or in two (2)
newspapers of general circulation.

Approved,