SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.No. 
2863 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
'15 Jll 21 P 4 :32 
IUX'BIVEU BY:=-6~ 
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 A TM 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 A TM transaction. 
1 


It also seeks to restrict the possible transaction fees that such financial institutions 
may charge for certain ATM transactions.! 
1 This bill was originally filed during the Thirteenth Congress, Second Regular Session. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S. No. 
2863 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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(OU.;" tlf tlle>rt"ubrv 
'15 JIl 21 P 4 :32 
R/£('EIVEO BY:-o"~ 
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: 
1 
SECTION 1. Short Title. - This Act shall be known as the "ATM Fee Regulatory 
2 
Act." 
3 
SECTION 2. Declaration of policy. - It is the policy of the State to promote the 
4 
general welfare of the people. Pursuant to this policy, this Act seeks to uphold the 
5 
people's right to be informed of hidden ATM fees before they are unceremoniously 
6 
charged with the same. 
7 
SECTION 3. Definition of Terms. - For purposes of this Act, the term: 
8 
(A) "ATM" means an automated teller machine; and 
9 
(B) "Financial institution" means a national bank, savings bank, savings and loan 
1 0 
association, federally chartered credit union, credit union and any entity that owns or 
1 1 
operates an automated teller machine. 
12 
SECTION 4. Fee Disclosure Required. - A financial institution shall disclose the 
13 
total transaction fee or surcharge to be imposed for each transaction on the screen of the 
14 
ATM prior to the completion of the transaction. The customer shall have the right to 
15 
cancel the transaction after the fee or surcharge is disclosed. 
1 


1 
A financial institution shall provide written notice to its account holders that a fee 
2 
may be imposed when the account holder uses ATMs owned or operated by another 
3 
financial institution or any national, regional or local ATM network whenever a card, 
4 
code or other means of ATM access is issued by the financial institution for the purpose 
5 
of initiating ATM transactions. 
6 
SECTION 5. Fee Restrictions. - The following fee restrictions shall apply to all 
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ATMs and ATM transactions under this Act: 
8 
(A)Screen Display and Printed Receipt as Prerequisites for Fee. - No customer 
9 
shall be liable to pay any fee or surcharge to a financial institution for an ATM 
10 
transaction at an ATM screen unless the fee or surcharge is displayed on the 
11 
ATM screen prior to the transaction and the fee or surcharge is indicated in the 
12 
printed receipt after the transaction. 
13 
(B) Telephone Transactions. -No customer shall be liable to pay any fee or 
14 
surcharge to any financial institution for any ATM transaction initiated via 
15 
telephone. 
16 
(C) Single Fee per Transaction. - No customer shall be billed for more than one 
17 
fee per ATM transaction regardless of the number of financial institutions 
18 
involved in the transaction. 
19 
(D) Cash-Dispensing Requirement. - No customer shall be liable to pay an ATM 
20 
fee or surcharge to a financial institution that does not dispense cash at all of 
21 
the institution's branch locations. 
22 
23 
SECTION 6. Separability Clause. - If any provision of this Act is held invalid or 
24 
unconstitutional, the same shall not affect the validity and effectivity of the other 
25 
provisions hereof. 
2 


1 
SECTION 7. Repealing Clause. - All laws, decrees, orders, and issuances, or 
2 
portions thereof, which are inconsistent with the provisions of this Act, are hereby 
3 
repealed, amended or modified accordingly. 
4 
SECTION 8. Effectivity Clause. - This Act shall take effect fifteen (I5) days after 
5 
its publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
Idpm 1 6july20 1 5 
3