The central bank is reminding the public to be more discerning about which automated teller machines to transact with after a new scheme came into effect this week that would result in various ATMs charging different fees depending on which bank the account of the user is in.
At an online press briefing, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the acquirer-based fee charging policy for ATM services took effect on April 7.
“Acquirer-based fee charging is a market-based and transparent way of pricing ATM services that empowers cardholders to choose an ATM that charges lower transaction fees,” he said.
“In the old pricing method, the cardholder has no option but to be charged a fixed fee in any ATM not owned by his bank,” he explained. “With variable fees charged under acquirer-based fee charging, the fee could be lower.”
The BSP explained that the shift to acquirer-based fee charging only affected the fees charged on transactions performed by cardholders at another banks’ ATMs. Withdrawal and balance inquiry fees remain free when a cardholder transacts at his own bank’s cash machine.
Moreover, to enable users to make better and more informed decisions, the ATM fees are required to be posted in the ATM location and displayed on ATM screens. An opt-out option is also provided in case the customer decided not to proceed with the transaction.
Through acquirer-based fee charging, the BSP also aims to address some of the challenges in financial access,
particularly the declining growth in ATM terminals and the limited availability of cash machines in the provinces.
While the National Capital Region and Region 4a have 34 percent and 13 percent of ATMs in the country, respectively, the share of other regions ranged from 0 to 8 percent.
With ATM owners allowed to set the fees charged on ATM transactions, banks can recover their cost and gain reasonable income. Acquirer-based fee charging could also drive support for the deployment of ATMs in rural areas with no or few machines.
“This helps promote financial inclusion,” Diokno said.
In relation to this, the BSP also advised the public to go digital and use their ATM cards in stores or e-shops to pay for purchases, grocery or shopping. Electronic payments of bills and loans can be done without charge and without the need for queuing at ATMs.