EXPLAINER: Why some banks now have zero-fee transfers?

Several banks have recently announced their implementation of "zero-fee" interbank transfers with support from the Bangko Sentral ng Pilipinas (BSP).

Under Memorandum No. 2026-025 dated June 17, the BSP Monetary Board approved lifting the moratorium on increases for InstaPay and PESONet transaction fees, allowing banks to adjust their rates under the new guidelines.

This memorandum implements the provisions of BSP Circular No. 1238, which aims to make digital financial services affordable, convenient, and accessible to all Filipinos.

What are the provisions of this circular?

Under Circular No. 1238, small merchants are exempt from fees when accepting digital payments. This policy aims to encourage more businesses to adopt cashless transactions.

Another provision is that transfer fees should not differ significantly when sending money to the same bank versus another bank. Banks may only add a "switch cost" or the actual expense of processing the transaction through the payment network.

The circular also states that all digital transaction fees must be based strictly on actual processing costs and must remain lower than over-the-counter banking charges.

Upon the BSP's request, banks must also present a cost analysis explaining the justification for their charged fees.

Implementation

The BSP on July 7 held a meeting with banks and a financial technology firm to discuss the implementation of Circular No. 1238, which took effect July 4.

As of July 10, banks that have reduced or waived their interbank transfer fees include BPI, Land Bank of the Philippines, Metrobank, BDO, Security Bank, PSBank, EastWest Bank, RCBC, UnionBank, and PNB.

Meanwhile, RCBC has capped its free transfers at 30 per month for transactions of at least ₱100, charging a ₱10 fee for any transfers that exceed this limit or fall below the ₱100 threshold. —VAL, GMA News