Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

4591

HOUSE BILL NO.

Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos

EXPLANATORY NOTE

Due to the advancement of technology, it cannot be denied that the use of
credit cards has become indispensable in making consumer credit readily available
to all Filipinos. It allowed Filipinos to transact conveniently without the need to
shell out cash, plan ahead purchases, and subsequently avail of advantageous
rates in their purchases.

With this growth in credit card use, some Filipinos have been taken
advantaged by malicious and nefarious groups by noting their credit card
information and details and have used these cards for their own gain. Fraudsters
can get hold of one’s personal information in many ways, from hacking retailers to
buying one’s data on the dark web, a shady corner of the internet that’s not
accessible via search engines like Google. Or, criminals can trick one into handing
over your information through online scams.

This is why we need to introduce more measures to protect consumers who
are availing these credit card services. While there are laws currently in place that
already aim to protect the consumers, the growing number of people being
victimized despite these measures shows the need to introduce further programs
and practices that will allow the public to trust the banking system and the
convenience of using credit cards.

It is for these foregoing premises that approval of this bill is earnestly
sought.

‘D-€. DELOS SANTOS
Representative,Ang Probinsyano Party List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bit no. 4591

Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos

AN ACT
AMENDING REPUBLIC ACT NO. 10870 OTHERWISE KNOWN AS THE
PHILIPPINE CREDIT CARD INDUSTRY REGULATION LAW

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

SECTION 1. Section 5 of Republic Act No. 10870 otherwise known as the
Philippine Credit Card Industry Regulation Law shall be amended to read as follows
and the subparagraphs renumbered accordingly:

“SECTION 5. Definition of Terms. - As used in this Act, the following terms
are defined as follows:

(a) xx
xxx

() _ Handheld Credit Card Terminal refers to the device used that an
employee of the establishment can bring along with which credit cards can make
electronic funds transfers;

(m) xx
xxx”

SECTION 2. A new section, Section 16-A, is inserted after Section 16 of
Republic Act No. 10870, to read as follows:

“SECTION 16-A. Use of Credit Cards in Establishments. - All establishments
should have handheld credit card terminals where the credit card will be swiped in
front of the customer to prevent cases of fraud and any other abuse related to
credit card use. These establishments who are taking payments through the use of
credit cards are mandated to comply with the provisions of this Act.”

SECTION 3. Repealing Clause. - All laws, decrees, executive orders, and
proclamations, rules and regulations or parts thereof inconsistent with this Act, are
hereby amended or modified accordingly.


SECTION 4. Separability Clause. — If any provision of this Act is held invalid
or unconstitutional, the remaining parts or provisions not affected shall remain in
full force and effect.

SECTION 5. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,