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Philippine's central bank to ATM operators: 'Keep fees reasonable'

August 5, 2019

The Bangko Sentral ng Pilipinas has reminded banks in the country to adhere to the "principles of reasonable and market-based pricing" for ATM fees. 

In a memo to all BSP-supervised financial institutions on July 19, the central bank ordered that "appropriate disclosures on ATM fees and charges shall be provided to the cardholders."

"The amount to be charged to a cardholder should be clearly displayed on the ATM location and on the screen of the ATM terminal," BSP Deputy Governor Chuchi Fonacier said in the memo. "The notice should clearly indicate that the amount displayed is on top of the charges that may be imposed by the card holder's issuer."

After ATM users complained of the high cost of ATM fees in the Philippines, the BSP suspended ATM fee increases in September 2013. Earlier this year, the central bank went ahead and lifted that moratorium.

The resolution, issued April 2018, called for the adoption of an "acquirer-based" charging method wherein the amount to be charged to a cardholder would vary depending on the ATM being used. 

The regulator said that acquirer-based charging allows ATM owners to compete directly compete for business by disclosing fees and offering lower charges than other ATMs in the area. "This, therefore, introduces a competitive discipline that can bring about efficiencies in the Philippine ATM system," the BSP said.

According to the latest memo, banks wanting to adjust their ATM fees should file a letter request with the regulator. 

(Update: An earlier version of this story stated that the BSP lifted its moratorium on ATM fees last year. The moratorium was actually lifted in July 2019.)