Lawmaker seeking to scrap credit, ATM cards penalties

A lawmaker on Wednesday filed a measure that would prohibit the imposition of a surcharge, extra charge or additional charge in the use of the credit, or automated teller machine (ATM) debit cards for payment of purchases of consumer products and services. Rep. Narciso Santiago 3rd of the party-list Alliance for Rural Concerns filed House Bill 6728 in response to numerous complaints about additional surcharges in transaction involving credit, or ATM cards.

“It is the declared policy of the State to protect the interest of the consumer, promote the general welfare and to establish standards of conduct for business and industry,” Santiago explained in seeking the immediate passage of the bill.

According to Santiago, the Department of Trade and Industry (DTI) issued a Department Administrative Order (DAO) 10 as the agency’s response to the numerous complaints on retail stores charging surcharges and additional charges.

Santiago said the main purpose of DAO 10 is to make retail stores use only one price tag for every product they sell and the stated price on the tag should be the same to all customers whether paying cash or by credit card, or debit-ATM card.

“The proposed measure is a reiteration of the policy behind the issuance of DAO 10 by protecting the consumers, especially those who use credit/ATM cards against additional surcharges,” Santiago said.

Santiago said by doing this, consumers are encouraged to make more transactions which in return mean more business for retail establishments, which is a big help in the troubled economy worldwide.

“DAO 10 should be given a more ‘permanent’ status as a legislative act rather than in its present form. This would ensure the stability in its enforcement,” Santiago said.

Under the bill, all retailers that honor or accept credit/ATM debit cards for payment shall not require the cardholders to pay a surcharge, extra charge or additional charge over and above the price tag on the consumer goods and services.

“It has been observed by this representation that consumer products or services have different price tags for cash and credit/ATM/debit card transactions for the same product or service. Others impose additional charges for credit/ATM/debit card transactions which are not reflected in the price tag and these retail stores do not give the same discount/sale price on the same product/service for credit/ATM/debit card transactions as opposed to cash transactions,” Santiago said.

Violators will be penalized with a P100,000 fine and a maximum of six months imprisonment for the first conviction and the revocation of business permit/license and imprisonment of a maximum of two years for the second conviction. –Frank Lloyd Tiongson, Manila Times