Acquirer-based ATM fee charging is competitive, transparent —BSP’s Diokno

The upcoming adoption of “acquirer-based ATM fee charging” mechanism for inter-bank automated teller machine (ATM) transactions is meant to give the banking public better options as the system is more transparent, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said Friday.

In an interview on GMA News’ Unang Balita, Diokno said that banks are set to adopt the acquirer-based ATM charging system.

This is one of the requirements of the central bank when it lifted, in 2019, the six-year moratorium on ATM fee adjustment imposed in 2013.

Under the acquirer-based charging, the bank that owns the ATM will set the fees unlike in the current system wherein the ATM card-issuer bank set the fees for the card holder.

“We will adopt a system, ang tawag dito acquirer-bsed charging method. It’s better, reasonable, it’s competitive,  and transparent,” Diokno said.

“So ‘yung publiko ay may choice.”

The BSP chief said that the central bank standardized inter-bank ATM withdrawal fees to range from P10 to P18.

At present, ATM withdrawal fees range from P10 to P15, which has been the case for more than seven years.

The acquirer-based charging system also requires banks to disclose fees to their customers before an ATM transaction.

“Para transparent tapos kung mag ki-key-in ka na... may option ka pa rin kung hindi mo nagustuhan ang rate you can opt out. It’s a very transparent system at rasonable,” Diokno said.

Likewise, banks should seek approval from the BSP before raising ATM fees.

“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,” the central bank said in a separate statement.

The BSP also noted that ATM transactions remain free of charge for those who will transact through the ATMs of their card-issuer bank.

“Providing ATM services entails cost, including 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 financial institutions are required to employ safeguards to ensure that their clients can safely and conveniently use ATMs,” it said.

“Adjustments in fees charged by banks to its non-customers are expected with the adoption of the acquirer-based ATM fee charging,” it added.

The Bank of the Philippine Islands (BPI), in an advisory, said it will implement acquirer-based fees for ATM transactions effective April 7.

It said non-BPI cardholders who use BPI ATMs will be charged P2 for balance inquiry and P18 for withdrawal. These are higher than the current P1.50 and P15 being charged for balance inquiry and withdrawal transactions.

Metrobank, likewise, said it will implement the acquirer-based fee charging on April 7. It will charge P2 for balance inquiry and P18 for withdrawal for non-Metrobank cardholders. It will also charge P7.50 withdrawal fee for PSBank cardholders who will use Metrobank ATMs.

UCPB also said that, effective April 7, it will charge non-UCPB cardholders P2 for balance inquiry and P15 for withdrawal.

Meanwhile, BDO Unibank is currently charging non-BDO cardholders P2 for balance inquiry and P11 for withdrawal.—AOL, GMA News