SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 
1768 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Serwlr 
(Oth;, tlf ttl'" .jvHth.tr~ 
'\3 OCl -2 An:4\ 
In response to numerous complaints about additional surcharges in transactions involving 
CreditiATMlDebit Cards, the Department of Trade and Industry issued Department 
Administrative Order No. 10. Its main purpose is to make retail stores use only one price tag for 
every product they sell and the stated price on the tag should be the same for all customers, 
whether paying cash, or by credit card, debit card, or A TM card. 
This Act is a reiteration of the policy behind the issuance of DAO 10. By protecting the 
consumers, especially those who use credit cards, debit cards, and A TM cards, against additional 
surcharges, we encourage more transactions. More transactions mean more business for retail 
establishments, and this is a big help in a troubled worldwide economy. 
DAO 10 would be given a more "permanent" status as a legislative act than as an 
administrative order. This would ensure stability in its enforcement. This Act also increases the 
penalties provided in the order and it also enumerates some of the more "popular" ways by 
which the DAO 10 was circumvented by some scheming retailers.' 
~ 
.... J~ . ..4""" ~~ 
t:;RIAM DEf~SOR SJ'{fITlp(C! 
'This bill was originally filed in the 141h Congress. 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
OCT -2 ml:41 
SENATE 
S. No. 
1768 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
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PROHIBITING THE IMPOSITION OF A SURCHARGE, EXTRA CHARGE OR 
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ADDITIONAL CHARGE IN THE USE OF CREDIT CARDS, DEBIT CARDS, AND 
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AUTOMATED TELLER MACHINE (ATM) CARDS, FOR PAYMENT OF PURCHASES OF 
5 
CONSUMER PRODUCTS OR SERVICES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Declaration of PolicY. - It is the policy of the State to protect the interests 
7 
of the consumer, promote his general welfare and to establish standards of conduct for business 
8 
and industry. 
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SECTION 2. Prohibition Against Surcharging by Retailers. - All retailers who honor 
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or accept credit/ ATM/debit cards for payment shall not require the cardholders to pay a 
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surcharge, extra charge, or additional charge over and above the price tag on the consumer goods 
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and services. The prohibition under this section shall include, but not limited to, the following 
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instances; 
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(A) 
Having a different price tag for cash and CreditlDebitlATM card transactions on 
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the same product or service; or 
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(B) Imposing additional charges for CreditiDebit/ATM card transactions which are not 
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reflected in the price tag; or 
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(C) Not giving the same discount/sale price on the same product/service for 
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Credit/Debit/ ATM Card transaction as opposed to cash transaction. 
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SECTION 3. Penalty. - Upon conviction of a violation of this Act, a fine of One 
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Hundred Thousand Pesos (PlOO,OOO.OO) shall be imposed. A second conviction shall carry with 
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1 
it the penalty a fine of Three Hlmdred Thousand Pesos (P300;OOO.OO) and of revocation of 
2 
business permit/license. 
3 
SECTION 4. Separability Clause. - If any provision or part hereof is held invalid or 
4 
unconstitutional, the remainder of the law of the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 5. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
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parts thereof inconsistent with the provisions of this Act are hereby repealed, amended, or 
8 
modified accordingly. 
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SECTION 6. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
, 
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following its publication in at least two (2) newspapers of general circulation. 
Approved, 
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