Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

‘Seventeenth Congress
First Regular Session

oan Oe See

Introduced by Representative H. Harry L. Roque Jr.

REQUIRING CERTAIN FINANCIAL INSTITUTIONS TO POST TRANSACTION
FEES FOR EACH AUTOMATED TELLER MACHINE TRANSACTION AND
RESTRICTING TRANSACTION FEES FOR AUTOMATED TELLER MACHINES
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 their accounts through other banks”
ATMs. In addition, other transactions such as deposits, fund transfers, and bill
payments which have traditionally been done in banks can now be done through the
use of ATMs.

All this convenience, however, comes with a price. Some financial institutions
charge their client for ATM transactions without the latter even being aware of the
amount of the charge, much less the fact of the charge, until he receives his periodical

bank statement. By then, it would be 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 on the
screen of the ATM prior to the completion of the transaction, of the fee that they may

incur should they choose 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.'

den

H. HARRY L. ROQUE JR.

' This bill was originally filed by Senator Miriam Defensor Santiago during the Sixteenth
‘Congress, Third Regular Session.

2


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

HOUSE OF REPRESENTATIVES
HB. No.

Introduced by Representative H. Harry L. Roque Jr

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 to
all ATMs and ATM transactions under this Act

(A)Screen Display and Printed Receipt as Prerequisites 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 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. —\f 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,