Banks, e-wallet operators, and other supervised financial institutions have until Saturday, July 4, to comply with the Bangko Sentral ng Pilipinas' (BSP) new rules on digital transfer fees, according to BSP Deputy Governor Mamerto Tangonan. The official said financial institutions covered by Circular No. 1238 are expected to adjust their electronic fund transfer fees once the regulation takes effect on July 4. The new rules come after years of consumer complaints over digital transfer fees, which can range from around P10 to P25 and upward, depending on the bank or e-wallet.
Tangonan stated at the sidelines of a BSP book launch on Friday, July 3, that the central bank anticipates payment service providers will comply with the new policy. He said failure to comply could lead to enforcement action, describing the initial steps as "first, there's a friendly reminder. And then, there's another reminder, less friendly."
Some financial institutions have already moved to lower or eliminate fees, including Landbank, BPI, and RCBC. The rule covers not only traditional banks, but also BSP-supervised payment providers and e-wallet operators such as GCash and Maya.
BSP Sets Fee Structure Based on Switch Costs
Under Circular No. 1238, BSP-supervised financial institutions must adopt a "reasonable and fair market-based pricing mechanism" for electronic payment transactions. Tangonan explained the rule focuses on the difference between same-bank transfers ("on-us" transactions) and interbank transfers ("off-us" transactions).
The deputy governor said the main difference between on-us and off-us transfers should be the switch fee, or the cost paid to the network that processes the interbank transaction. "Bank A to Bank A, free. And then if you want to maintain that free Bank A to Bank A, free, when you do Bank A to Bank B, it should be [just] plus switch," Tangonan said.
For InstaPay transfers, the switch fee is around P1.50. This means that following the new rules, the difference between on-us and off-us transactions should only be around P1.50. "So all we say is that whatever you charge, the price of your off-us transaction must be the same as your on-us [or] cannot be more than your on-us price plus the switch fee. That's all it says," he added.
Tangonan said the BSP does not want one type of transfer subsidizing another. "It's more fair if you don't make one transaction pay for another. So if you want to charge a fee, you allocate it to all transactions. That's the essence of the situation," he stated.
Central Bank Eases Merchant Onboarding Requirements
Circular No. 1238 also eases onboarding requirements for potentially low-risk merchants, such as sari-sari (general merchandise) stores, beauty shops, and bakeries. Tangonan said a national ID or other identity document may be enough for such merchants, instead of heavier documentary requirements like business permits.
The deputy governor described payments as a "two-sided market," stating that it is not enough for consumers to have digital wallets or bank accounts if they have few places to use them. "When you increase the consumer usage, you have to increase the number of merchants where they can use it. Otherwise, all of us have a balance, but there's no one to pay to," he said.
Tangonan said the aim is for more merchants to come on board, creating what he described as a "virtuous cycle" where more consumers encourage more merchants and vice versa. He stated the lower-fee push is meant to encourage more Filipinos to use digital payments, noting that "one of the barriers is, they say, high fees. So if you remove that, more customers will use it."
FAQ
What is the deadline for banks and e-wallets to comply with BSP's new transfer fee rules?
Banks, e-wallet operators, and other supervised financial institutions have until Saturday, July 4, to comply with Circular No. 1238, according to BSP Deputy Governor Mamerto Tangonan.
How much should interbank transfer fees differ from same-bank transfer fees under the new BSP rules?
Under Circular No. 1238, the difference between same-bank (on-us) and interbank (off-us) transfers should only be the switch fee. For InstaPay transfers, that switch fee is around P1.50, meaning off-us fees should not exceed on-us fees by more than approximately P1.50.
