Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 4106

Introduced by ERIC L. OLIVAREZ

EXPLANATORY NOTE

In the fast-rising modernity of our society, the evolution
and improvement of modes of transaction becomes inevitable.
Every field or industry, every tool or way of conducting day to
day businesses and activities becomes highly technological
and much more efficient as well.

One aspect in regular transactions which has necessarily
transformed is payment method. In the Philippine setting,
more and more Filipinos are availing different alternatives for
cash or money nowadays. The use of credit card is not new to
us. It has gained popularity all over the world because of many
advantages that it offers. For one, credit cards are a helpful
tool when it comes to emergencies. It is also a safer
alternative of cash considering that potential thieves or
robbers cannot really make use of such credit card even if they
get a hold of it because of its security features.

In most of the countries worldwide, credit cards are being
utilized for transportation and travelling payments. This is so
because credit cards generally offer peace of mind to a


travelling or commuting individual. To be more particular,
most countries now allow credit card payments for their taxi
rides, among many other modes of transportation.

In the Philippine setting however, commuters are still
required to pay in cash when riding taxi cabs, notwithstanding
the increasing rate of crimes related to theft, robbery and
snatching which are now proliferating not only in public
streets but also inside public utility vehicles like taxi cabs.
These traumatic experiences can be prevented if only
passengers have the option to pay using cash alternatives
such as credit card. It is about time that we join the other
countries in providing safer transportation to our citizens.
Considering that a lot of Filipinos, especially the professional
and working classes, do have or are capable of availing credit
cards, it is very reasonable and pragmatic to approve this bill
and turn it into law once and for all.

au C. Tr,

ERIC L. OLIVAREZ


Republic of the Philippines
HOSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No, 4106

Introduced by ERIC L. OLIVAREZ

“AN ACT ADOPTING THE CREDIT CARD SYSTEM AS
AN ALTERNATIVE OR OPTIONAL MODE OF PAYMENT IN
TAXI CAB TRANSPORTATION.”

SECTION 1. Short Title. This Act shall be known as the “Credit
Card Payment for Cabs Act of 2014”.

SECTION 2. Definition of Terms.

Credit Card - a small plastic card issued by a
bank and or a financial company allowing the
holder to purchase goods or services on credit.

Taxicab - an automobile operating as a public
utility vehicle and carries passengers for a fare
usually determined by the distance traveled.


SECTION 3. Coverage. This Act shall cover all taxi cab
operators and/or drivers whether licensed or not, nationwide, or in
any route, or in any area applicable where taxi cabs may be

operated.

SECTION 4, Adoption of a New Taxi Meter System. A new taxi
meter system which allows and/or reads and/or accepts credit card
as payment from the passenger of such cab shall be adopted by the
Land Transportation Franchising and Regulatory Board (LTFRB).

SECTION 5. Mandatory Installation of the Credit Card
System. All taxi owners/operators, whether under an existing
franchise or upon application of a new one, are hereby required
to install a taxi meter system that accommodates credit card
payments in every cab unit he/she presently owns/operates or
will own/operate in the future.

SECTION 6. Allowance of Time for Owners/Operators with
Subsisting Franchise. Owners/Operators of taxi cabs under an
existing franchise are given three (3) months from the adoption by
the LTFRB of a taxi meter system that accommodates credit card
payments, to comply with the requirements of this Act.

SECTION 7. Monitoring. The Land Transportation Franchising
and Regulatory Board (LTFRB) shall conduct regular ocular
inspections after the lapse of three (3) months from the
promulgation of this Act to ensure that all taxi owners/operators
have complied with the requirements of this Act.

SECTION 8. Requirement for Application of a New Franchise.
Application for a franchise to operate a taxi line or business by a
person or persons who wish to own/operate taxi cabs as public
utility vehicles, shall not be granted until and unless the owner or


operator, upon the inspection and assessment of the LTFRB is
ready and/or equipped to install the new taxi meter that
accommodates credit card payments as provided by this Act for
every cab unit it owns/will operate.

SECTION 9. Applicants to Obtain Certification from LTFRB.
Applicants of a new franchise shall obtain a certification from Land
Transportation Franchising and Regulatory Board stating that each
of its taxi unit is equipped with, willing and ready to adopt the new
taxi meter system that accommodates credit card payments, and
the said certification shall be attached or incorporated to the other
pertinent documents necessary for the application process of a
franchise to operate a taxi line or business.

SECTION 10. Pending Applications for Franchise. Applications
for franchise already filed before the Land Transportation
Franchising and Regulatory Board but pending approval thereof
upon the promulgation of this Act shall be deferred until and unless
applicants comply with the additional requirement as provided
under this Act. An additional requirement of obtaining Certification
from the LTFRB as stated in Section 7 hereof shall be submitted by
the applicants whose franchise applications are pending. Only upon
the attainment and submission of the said certification, along with
compliance with other requirements as required by existing laws,
shall the application be finally granted or approved.

SECTION 11. Broken Credit Card Equipment. The taxi cab may
not be in service if the credit card equipment is not functional. If
indeed the credit card processing equipment ceases to function, the
taxicab driver must report the problem to the LTFRB or any of its
delegated office or branch for repair. Any other action by the driver
in this particular situation is considered a direct conflict and
violation of this Act and shall be meted with a penalty of suspension


or revocation of license or franchise and a fine of not less than
P20,000.00 but not more than P50,000.00.

SECTION 12. Refusal to Accept Credit Card as Payment.
Refusal of a credit card payment for a taxicab fare is considered a
violation of this Act and shall be meted with a penalty of suspension
or revocation of license or franchise and a fine of not less than
P20,000.00 but not more than P50,000.00.

SECTION 13, The taxi passengers have the right to demand
for a receipt covering the whole trip which must contain all of the
trip information necessary, in accordance with the Implementing
Rules and Regulations of this Act.

SECTION 14. Implementing Rules and Regulations. The
Department of Transportation and Communications (DOTC) in
coordination with the Land Transportation Franchising and
Regulatory Board (LTFRB) and the Land Transportation Office (LTO)
shall promulgate the Implementing Rules and Regulations to carry
out the provisions of this Act. Such rules and regulations shall
take effect upon their publication in three (3) newspapers of general
circulation.

SECTION 15. Repealing Clause. - All laws, presidential
decrees, letters of instructions, executive orders, rules and
regulations insofar as they are inconsistent with this Act, are
hereby repealed or amended as the case may be.

SECTION 16. Separability Clause. - In the event that any
provision of this Act or any portion thereof is declared
unconstitutional by a competent court, the other provisions shall
not be affected thereby and shall remain valid and enforceable.


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SECTION 17. Effectivity Clause. ~ This Act shall take effect

after its complete publication in at least three (3) newspapers of
general circulation,

APPROVED.