House urges lower remittance and bank transaction fees amid rising fuel costs

The House of Representatives on Wednesday called on banks, remittance centers and other financial institutions to reduce, if not waive, remittance and transaction fees to ease the public’s burden amid rising oil prices brought about by the Middle East armed conflict.

This developed after the House, via voice vote, adopted House Resolution 905 authored by House Majority Leader and Ilocos Norte First District Representative Sandro Marcos.

Marcos said that the sharp increase in fuel prices will ultimately lead to higher prices of services, goods and industries relying on fuel, making the waiver or reduction of such fees necessary.

“A Filipino worker's reliance on cashless transactions through digital platforms will only be magnified in a four day-workweek or work-from-home arrangement where it is expected that online payment alternatives for purchase of basic goods and necessities would be availed of by workers not being made to travel for work,” he said in his resolution.

“To ease the burden of paying for services, goods and industries as well as to promote financial stability in times of distress amid the oil price increases, there is a need to temporarily evaluate the imposition of transaction fees and those made online thru digital platforms of banks and non-bank financial institutions,” he added.

Likewise, Marcos said that Filipino workers often course their salary through the use of banks' ATMs which, in turn, impose transaction fees for withdrawals of P18 for non-account holders, and as much as P25 for online inter-bank transaction fees, both of which are already a significant sum. 

He said these amounts alone account for 2.59% and 3.6% of the daily minimum wage in the National Capital Region (NCR), respectively.

“Fees charged by remittance centers and other financial service providers for domestic and international money transfers impose additional costs on users, particularly overseas Filipinos and their families, with service charges varying depending on the amount remitted and the mode of transfer, thereby further reducing the value of funds received by beneficiaries. With the crisis in the Middle East having no immediate end in sight at present, it is imperative that Congress seek to adopt all measures available to it to help Filipino workers withstand this challenging moment and to mitigate the impact of global price shifts by adjusting the costs of banking in line with our current circumstance as a nation,” he said.

“Now therefore, be it resolved by the House of Representatives to urge banks, remittance centers, and other financial service providers to adopt temporary measures, including the waiver or reduction of remittance and transaction fees, to ease the financial burden of Filipinos in the Middle East and their families,” he added. — BM, GMA Integrated News