FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
First Regular Session 
SEN~~30 
S. No. _--=--=--=-
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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In response to numerous complaints about additional surcharges in transactions involving 
Credit/ATM/Debit Cards, the Department of Trade and Industry issued Department 
Administrative Order 10. It's 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 or debit-ATM card. 
This Act is a reiteration of the policy behind the issuance of DAO 10. By protecting the 
consumers, especially those who use Credit/ATM/Debit 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 ,1 0 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: 
• This bill was originally filed in the 14th Congress. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENAW 
S.No. 
~d30 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT PROHIBITING THE IMPOSITION OF A SURCHARGE, EXTRA CHARGE OR 
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ADDITIONAL CHARGE IN THE USE OF CREDIT/AUTOMATED TELLER MACHINE 
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, (ATM)/DEBIT CARDS FOR PAYMENT OF PURCHASES OF 
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CONSUMER PRODUCTS OR SERVICES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Policy. It is the policy of the State to protect the interests of the consumer, 
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promote his general welfare and to establish standards of conduct for business and industry. 
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SECTION 2. Prohibition Against Surcharging by Retailers. All retailers who honor or 
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accept credit/ ATM/debit cards for payment shall not require the cardholders to pay a surcharge, 
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extra charge, or additional charge over and above the price tag on the consumer goods and 
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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 Credit/ ATMlDebit card transactions on the 
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same product or service; or 
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B) Imposing additional charges for Credit/ATM/Debit 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 pnce on the same product/service for 
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Credit/ ATM/Debit 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 (Php 100,000.00) and imprisonment of not less than one (I) month but 
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not more than six (6) months shall be imposed. A second conviction shall carry with it the 
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penalty of revocation of business pennit/license and imprisonment of not less than six (6) months 
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but not more than two (2) years. 
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SECTION 4. 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 
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modified accordingly. 
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SECTION 5. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
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following its publication in the Official Gazette or in two (2) newspapers of general circulation. 
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Approved, 
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