On April 7, as they enforce the “acquirer-based ATM fee charge” mandated by the Bangko Sentral ng Pilipinas, some banks will increase their interbank ATM transaction fees.
The hike also comes after some banks were permitted to increase ATM fees by the Banko Sentral ng Pilipinas back in 2019.
Under the new system approved by the BSP, fees for ATM transactions are set by the banks that own the used ATM terminal instead of the existing system in which the card-issuing bank sets the fee paid to the cardholder.
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Moving forward, a cardholder who will use the ATMs of their own banks will not be included in the increase in ATM fees.
BPIs Increase Towards Non-BPI Cardholders
The Bank of the Philippine Islands (BPI) said that non-BPI cardholders using BPI ATMs would need to pay P2 per balance inquiry beginning on April 7, and P18 per cash withdrawal.
As per the company, BPI cardholders will be able to continue using their ATMs the same way.
BPI clients can continue to use their BPI debit cards on BPI ATMs at no cost.”
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On the other hand, BPI said fees would be charged if cardholders used local non-BPI ATMs via BankNet.
The fees are much higher than the P1.50 account balance and P15 withdrawal fees currently collected by their respective banks from non-BPI cardholders any time they use the ATMs of the Ayala-led banks.
BPI added that the balance fee is displayed as a different debit sum on the day the transaction was made. This will reflect in the cardholder’s account statement.
The withdrawal fee shall be automatically added to the amount withdrawn.”
Other Banks Making the Adjustments
Other banks have proposed improvements to their fees as well.
For other local bank cardholders, Metrobank also said it is raising its interbank balance inquiry and withdrawal fees to the same level as BPIs.
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So, if you see a Metrobank ATM and you’re not a Metrobank cardholder, you can expect a P2 fee for balance inquiry and a P18 fee for withdrawal.
On the other hand, Metrobank said the PSBank cardholders’ balance inquiry would be free of charge, although only P7.50 would be the cash withdrawal rate.
BDO’s Increase in ATM Fees
In the meantime, the BDO website currently places the interbank ATM withdrawal at P11 and the balance inquiry charge at P2.
Their charges are actually known to be the cheapest in the changes or the increase in interbank ATM fees.
DBP and UCPB’s Increase in Fees
The Philippines Development Bank (DBP) and the UCPB said they would charge P15 for the withdrawal and P2 for the balance inquiry.
UnionBank of the Philippines’ Increase in ATM Fees
For its part, Unionbank said it would charge P12 for the ATM withdrawal and P2 for balance inquiry.
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The BSP said the new interbank ATM fee structure enables ATM owners in providing lower fees than other nearby ATMs and to compete directly with each other for business by disclosing feeds.
Security Bank’s Fee Increase
Lastly, Security Bank, one of the most reputable banking institutions in the country, has been known to hold the highest increase.
The charge would be P10 for interbank ATM withdrawal fee; and P300 for Maestro or Cirrus. For the balance inquiry fee, it’s going to be P1; and P60 for Cirrus or Maestro.
Fees Must be Kept Reasonable
Chuchi Fonacier, Deputy Governor of the BSP, reminded these banks to make sure that their fees are kept at the best and the most reasonable rate.
This move is good and the BSP would not intervene with these plans. However, it’s still good to think of the welfare and the conditions of the cardholders and clients.
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While the BSP does not directly intervene in the prices of BSFIs’ products and services as a matter of policy, the BSFIs are reminded that it is their responsibility to ensure adherence to the principles of reasonable and market-based pricing.”
To sum up the topic, the new method allows ATM owners to directly compete for business towards each other by disclosing charges and offering lower fees than other ATMs in the vicinity.
Who will benefit from the up-coming increase in ATM fees? Of course, the owner of these machines. So, do you think this is the perfect time to make this increase in the interbank ATM fees? Furthermore, would these changes be of any good to the economy even if it’s brutal to the people?
Source: The Philippine Star