A Bangko Sentral ng Pilipinas (BSP) memorandum which aims for more transparency in automated teller machine (ATM) fees may cause a rise in charges.

BSP Monetary Board Resolution No. 1680 shifts the current ATM issuer-based model to an acquirer-based ATM charging model effective April.

Currently, the bank that issued the ATM card charges a fee for each transaction when the cardholder uses his or her ATM card at a different bank’s machine.

With the shift, the bank that owns the ATM will be the one charging non-customers a fee per transaction.

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

ATM withdrawal fees currently range from P10 to P15, which has been the case for more than 7 years.

By April 7, ATM withdrawal fees are expected to range from P10 to P18.

“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.

The BSP also maintained that the new charging method incentivizes banks to set up more ATMs, which would broaden their reach.

In 2019, central bank officials told Rappler that the shift may actually result in lower ATM fees, as banks would compete to get customer loyalty. (READ: EXPLAINER: Why ATM fees will change soon (and may even go down))

Factor in the pandemic

Makati City Representative Luis Campos Jr said the changes may cause user fees to spike up to 63%.

“Our sense is, it might be more prudent to put off the effectivity of the new ATM charging model to spare Filipinos the aggravation, considering the extremely adverse economic backdrop of mounting joblessness and rising food prices,” said Campos, a member of the House committee on banks and financial intermediaries.

House Deputy Minority Leader and Bayan Muna Representative Carlos Zarate also opposes the expected hike. He urged banks to adjust for now due to the coronavirus pandemic.

“Why can’t the BSP and the banks also make sacrifices just like the millions of Filipinos in these trying times? Pandemic profiteering is truly abhorrent  during this time of crisis,” he said.

Zarate is pushing for standard ATM transaction fees and notification regarding the charges prior to completion of any transaction.

He earlier filed a bill to counter the planned increase in ATM charges, but nothing happened to the measure.

“Banks already earn profits when the salaries and wages of workers are coursed through them by the employers. They should not further extract profit from the workers who need every peso of their earnings,” Zarate said. – Rappler.com