The Bangko Sentral ng Pilipinas (BSP) reminds the public that the acquirer-based fee charging (ABFC) for automatic teller machine (ATM) services began to take effect yesterday, April 7.
“The ABFC is a market-based and transparent way of pricing ATM services that empowers cardholders to choose an ATM that charges lower transaction fees,” said BSP Governor Benjamin E. Diokno.
“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. With variable fees charged under the ABFC, the fee could be lower,” the Governor added.
The BSP explained that the shift to ABFC only affects the fees charged to transactions performed by cardholders at another bank’s ATM. Withdrawal and balance inquiry fees remain to be free when a cardholder transacts at his bank’s ATM.
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 ABFC, 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 ATM terminals in the provinces.
While the National Capital Region and Region IV-A have 34 percent and 13 percent of ATMs in the country, respectively, the share of other regions ranges from 0 – 8 percent.
With ATM owners allowed to set the fees charged to ATM transaction, recover their cost and gain reasonable income, the ABFC could drive support for the deployment of ATMs in rural areas with no or few ATMs. This promotes financial inclusion.
In relation to this, the BSP also advises 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. (Press Release)
