Starting on April 7

The Bangko Sentral ng Pilipinas (BSP) said the banking public will only see ATM fee adjustments of P10 to P18 after the first week of April, from P10 to P15 which has been the price for transacting machine withdrawals since 2013.

“By April 7, ATM withdrawal fees are expected to range from P10-P18,” said the BSP in a statement. “BSP will review and approve all requests for ATM fee adjustments, and will consider the reasonable cost for ensuring the reliability and security of ATM services.”

After April 7, the BSP will adopt the acquirer-based ATM fee charging (ABFC) which was the agreement with banks when it lifted a six-year moratorium on ATM fee increases in 2019.

 “The method is more advantageous to the transacting public as it promotes transparency and empowers consumers to choose the FI (financial institution) that satisfies their needs in terms of fees and quality of service,” the BSP explained.

The ABFC method will permit banks operating ATMs to be “reasonably compensated for servicing non-customers”. The new ATM fee charging will also incentivize banks to operate more ATM terminals and expand its network across the country. “Currently, a cardholder is charged by his/her bank the same ATM fees for transacting at other ATM terminals. With ABFC, a FI can set ATM fees for non-customers, while continuing to offer free ATM withdrawal and balance inquiry services to its customers,” said the BSP.

Banks incur costs in maintaining and providing ATM services. They have to pay for the following: the counting and transporting of cash and its loading in ATMs; using electricity; providing security; and other expenses to operate and maintain said machines. “BSP-supervised FIs are required to employ safeguards to ensure that their clients can safely and conveniently use ATMs,” added the central bank.

 “Adjustments in fees charged by banks to its non-customers are expected with the adoption of the ABFC. At present, ATM withdrawal fees range from P10-P15, which has been the case for more than seven years,” said the BSP.

Last Wednesday, the Bankers Association of the Philippines said the new ATM pricing method will result to more competitive ATM fees.

The current practice in setting ATM fees is the issuer-based charging method which has the acquiring bank deciding the fees while the issuing bank can also charge a separate fee so long as this additional fee is properly disclosed ATM users.

There are 22,332 ATMs that are operated by banks in the country, based on BSP data. The big banks owned 19,889 while thrift banks operate 1,824. Rural banks have 593 ATMs listed with the BSP.

BSP Governor Benjamin E. Diokno said previously that because of the movement restrictions due to COVID-19 lockdowns, the volume and value of check payments and ATM withdrawals have declined, with most financial consumers forced to transact via digital means or e-payments.