Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
EXPLANATORY NOTE 
In this day and age where everything is fast-paced, technologically advanced, 
and leaning towards a system that is paperless, consumers are starting to explore 
more convenient ways to carry out and accomplish their day-to-day activities. 
Filipinos, especially professional are starting to see the value of credit cards to 
facilitate their purchases and other important transactions. 
According to Visa's Consumer Payment Attitudes Survey, an annual study 
conducted online across six markets in Southeast Asia, over half of Filipinos who 
have tried electronic payment methods prefer it to using cash. As of 2016, Forty-nine 
percent of Filipinos have more cards in their wallets compared to five years ago, while 
29 percent carry less cash. Filipinos were most interested in contactless payments, 
and used them typically to pay for groceries, bills and fines, and food and beverages. 
Indeed, while the Philippines has lagged behind other Southeast Asian 
countries in terms of actual credit card usage throughout the years, Filipinos 
nonetheless showed a huge appetite for new technology that bring convenience and 
security. This is why the banking industry is investing heavily in contactless 
payments and is convincing more retailers to install technology that would allow "tap 
and go" payment schemes. 
As more and more Filipinos avail of the credit card service, the State has to be 
more vigilant in protecting their rights as consumers and ensuring that they do not 
fall on the traps of careless spending and, worse, incurring unnecessary and 
completely avoidable penalties from credit card companies. Perhaps by doing so, the 
State can also encourage more Filipinos to use and explore the realm of cashless 
transactions and the benefits it could offer, free from the fear of being unable to 
manage their own finances properly and of ending up paying hefty amounts of 
charges to the credit card company. 
Filipinos only need security and assurance that the credit card industry is not 
out there only to get their hard-earned money in the form of inadequately disclosed 
fines, surcharges, and penalties. By enacting this proposed Act, the State is 
intensifying its regulatory functions that would strike a good balance between the 
interest of this booming credit card industry and the interest of the people who work 
February 7, 2023
3:45 pm
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hard for the money. 
Therefore, this legislative measure is hereby earnestly being proposed for the 
approval of this august body. 
EDWIN L. OLIVAREZ 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
AN ACT REQUIRING THE CREATION OF A SYSTEM OR 
APPLICATION THAT WOULD DETERMINE POTENTIAL CREDIT 
LIMIT BREACH AND GIVE THE CREDIT CARD HOLDER 
REAL-TIME FINANCIAL NOTIFICATION 
Section 1. Short Title. This Act shall be known as the “Real Time Credit 
Limit Notification Act”. 
Section 2. Definition of Policy. It is hereby declared as a policy of the State 
to balance the interest of the credit card industry which has been recognized as an 
indispensable tool in in the economy's development, with the right of the public 
particularly the credit cardholders to fair, sound, and transparent consumer credit 
practices aligned with international best practices. To this end, the State shall 
institute appropriate mechanisms to protect credit cardholders from unexpected 
penalty and other charges in crucial cases such as a credit limit breach. 
Section 3. Scope and Coverage. The Act shall govern all credit card issuers, 
acquirers and all credit card transactions in the Philippines. 
Section 4. Definition of Terms. The following terms, as used in this Act, 
shall mean: 
Credit card - refers to any card or other credit device intended for the 
purpose of obtaining money, property or services on credit. 
Credit card limit - refers to the maximum total amount for purchases, 
cash advances, balance transfers, and finance charges, service fees, penalties, 
and other charges which can be charged to the credit card. 
Credit card limit breach - refers to the situation when a credit 
cardholder's account balance is more than the maximum amount of money 
the credit card issuer would loan to the former. 
Application - refers to a computer program or software application 
designed to run on devices such as computers, laptops and mobile devices 
like phones or tablets. 
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Credit card Issuer - refers to a bank or a corporation that offers the 
use of its credit card. 
 
Section 5. Creation of Credit Limit Notification System. - Every credit 
card issuer shall create or commission the creation of a credit limit notification 
system or application for its credit cardholders that would provide updated or real-
time information on their outstanding credit card expenditure vis-à-vis the amount 
of their credit limit. The said application shall prompt an alert to the credit cardholder 
of a potential breach of his/her credit limit by a new transaction as well as of the 
remaining balance that the credit cardholder may use to avoid being charged 
penalties for any over- the-limit transaction. Provided further, that the application 
must clearly and prominently indicate the corresponding penalties, fees and/or other 
related charges for the breach of the credit limit to guide the credit card holder in 
case he/she decides to proceed with the over-the-limit transaction. 
 
Section 6. Period of Creation. All credit card issuers must have a fully 
operational credit limit notification system/ application bearing all the features or 
specifications required by this law and its Implementing Rules and Regulation, 
within one year from the effec0livity of this Act. 
 
Section 7. Disclosure Requirement. All credit card issuers are required to 
inform all its present credit cardholders of the existence of such credit limit 
notification system or application and provide basic guide or instructions on how to 
install and use such application in their devices. Provided further, that credit card 
applicants must be informed by the credit card issuer about such system by its 
attending agent or manager at the point of application, even pending its approval. 
 
Section 8. Violation of this Act. A person or entity which failed to comply 
with the provisions of this Act and any related rules and regulations issued by the 
Monetary Board shall be subject to applicable criminal and administrative sanctions 
as well as any applicable penalties and fines, as provided in R.A. 7653 or the New 
Central Bank Act, and/or R.A. 10870 otherwise known as the Philippine Credit Card 
Industry Regulation Law. Provided, that in addition to the abovementioned sanctions 
that may be imposed, the authority of the credit card issuer to issue credit cards may 
be suspended of cancelled by the Bangko Sentral ng Pilipinas. 
 
Section 9. Implementing Agency and Rules. The Monetary Board of the 
Bangko Sentral ng Pilipinas shall issue the necessary implementing rules and 
regulations to implement the provisions of this Act within ninety (90) days after its 
effectivity. 
 
Section 10. Separability Clause. If any provision of this Act is declared 
invalid or unconstitutional, other provisions hereof which are not affected thereby 
shall remain valid, and in full force and effect. 
 
Section 11. Repealing Clause. All laws, orders, decrees, rules and 
regulations and other parts thereof which are inconsistent with the provisions of this 
Act are hereby repealed, amended or modified. 
 
Section 12. Effectivity. This Act shall take effect fifteen 15) days after its 
publication in the Official Gazette or in two (2) newspapers of general circulation. 
 
Approved.