FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
1 () 
JUt. 21 
AlO :35 
SENb.Ifl 
S. No. 1.'104 
Introduced by Senator Miriam Defensor Santiago 
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 arran~ements 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 
change, much less the fact of the charge, until he receives his periodical bank statement. By then, 
it will have been too late for him to take steps to avoid the charge . 
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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 chose 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.! 
I This bill was originally filed during the Thirteenth Congress, Second Regular Session. 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
10 Jl.l 21 
AlO :35 
SENA1]l 
S.No. 1704 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
(]/ 
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REQUIRING CERTAIN FINANCIAL INSTITUTIONS TO POST TRANSACTION FEES 
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FOR EACH AUTOMATED TELLER MACHINE TRANSACTION; AND RESTRICTING 
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TRANSACTION FEES FOR AUTOMATED TELLER MACHINES . 
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Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
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assembled: 
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SECTION I. Short Title. - This Act shall be known as the "ATM Fee Regulatory Act." 
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SECTION 2. Declaration of policy. - It is the policy of the State to promote the general 
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welfare of the people. Pursuant to this policy, this Act seeks to uphold the people's right to be 
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informed of hidden ATM fees before they are unceremoniously charged with the same. 
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SECTION 3. Definition of Terms. -For purposes ofthis Act, the term: 
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CA) "ATM" means an automated teller machine. 
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CB) "Financial institution" means a national bank, savmgs bank, savmgs and loan 
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association, federally chartered credit union, credit union and any entity that owns or operates an 
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automated teller machine. 
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SECTION 4. Fee Disclosure Required. - A financial institution shall disclose the total 
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transaction fee or surcharge to be imposed for each transaction on the screen of the ATM prior to 
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the completion of the transaction. The customer shall have the right to cancel the transaction 
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after the fee or surcharge is disclosed. 
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A financial institution shall provide written notice to its account holders that a fee may be 
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imposed when the account holder uses ATMs owned or operated by another financial institution 
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or any national, regional or local ATM network whenever a card, code or other means of ATM 
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access is issued by the financial institution for the purpose of initiating ATM transactions. 
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SECTION 5. Fee Restrictions. - The following fee restrictions shall apply to all ATMs 
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and ATM transactions under this Act: 
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, 
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(A)Screen Display us Prerequisite for Fee. - No customer shall be liable to pay any fee or 
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surcharge to a financial institution for an ATM transaction at an ATM screen unless 
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the fee or surcharge is displayed on the ATM screen prior to the transaction. 
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(B) Telephone Transactions. -No customer shall be liable to pay any fee or surcharge to 
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any financial institution for any A TM transaction initiated via telephone. 
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(C) Single Fee per Transaction. - No customer shall be billed for more than one fee per 
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ATM transaction regardless of the number of financial institutions involved in the 
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transaction. 
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(D) Cash-Dispensing Requirement. - No customer shall be liable to pay an ATM fee or 
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surcharge to a financial institution that does not dispense cash at all of the 
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institution's branch locations.' 
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SECTION 6. Separability Clause. - If any provision or part hereof, is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and SUbsisting. 
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SECTION 7. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
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with the provisions of this act is hereby repealed, modified or amended accordingly. 
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SECTION 8. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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