Metro Manila (CNN Philippines, August 12) — A lawmaker is questioning the Bangko Sentral ng Pilipinas (BSP) decision to remove the cap on fees imposed on automated teller machine (ATM) transactions using terminals not belonging to the account holder’s bank.
Makati Representative Luis Campos, Jr. has filed House Resolution 210 asking the House Committee on Banks and Financial Intermediaries to investigate “looming increases” in ATM fees after the central bank removed a six-year moratorium on adjusting bank charges on machine withdrawals and balance inquiries.
The BSP announced in July that it will be allowing banks and ATM providers to set new fees for machine-based transactions. Banks will still have to formally inform the BSP and their customers when their increased fees will be imposed. Prior to this, ATM fees have remained the same since September 2013.
According to the central bank’s list, current fees on cash withdrawals range from ₱10 to ₱15 for big banks, while rural lenders are authorized to charge up to ₱46 per transaction. Balance inquiries go as high as ₱2.50 per request. These are slapped on cardholders who use another bank’s ATM terminal. Withdrawals are free when using the ATM provided by the bank that issued the card.
BSP Deputy Governor Chuchi Fonacier, who handles bank supervision, said banks still need to secure the regulator’s approval before jacking up ATM charges. They must also disclose to clients and ATM users the fees that they are imposing by displaying the rates on the terminal. Through this, the central bank wants to encourage “market-based pricing” of transactions.
But Campos said this would only empower banks to raise their rates.
“These charges could jump to as much as ₱15 to ₱30 per single interbank withdrawal, possibly even higher, with the removal of the moratorium,” the solon warned in a statement issued Monday.
“We are worried that the forthcoming increases in ATM charges might harm consumers — the nation’s more than 58 million ATM cardholders.”
