Banks were given leg room to increase ATM fees under a new charging system that aims to both give consumers the power of choice and encourage lenders to expand their electronic banking footprint outside of Mega Manila.
Bangko Sentral ng Pillipinas Gov. Benjamin Diokno explains the Acquirer-based ATM Fee Charging or ABFC, which took effect April 7.
What is the Acquirer-based ATM Fee Charging or ABFC?
The ABFC allows banks to charge P10 to P18 for withdrawals from their ATM of clients of other banks. If you withdraw money from the ATM of a bank that is not your own, you will be charged under the ABFC. Balance inquiries are expected to cost up to P2.50.
For withdrawals and balance inquiries using your own bank's ATM, Diokno said there should be no charge.
Think of ATM charges as a "convenience fee," said Diokno. The maximum P18 charge could be much lower than the fare or gas money to go to the bank. If you don't want to spend too much on ATM fees, he recommends banking digitally as much as possible.
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What does the ABFC hope to achieve?
In principle, Diokno said this should give consumers more choices. Assuming many ATMs are available in the vicinity, the consumer can choose the machine that charges the smallest transaction fees.
Think of it as a free market of fees, banks would want to make their transaction charges competitive to attract more customers, the governortold state-run PTV.
"Sa bagong sistema, makakapili ka, sino pinakamababa sa mga ATMs sa inyong area," he said.
Why should the ABFC be implemented at this time?
The previous ATM fee tables have been in place since 2014. "Ang old pricing system ay seven to eight years old. Madami siyang problema," Diokno said.
Banks don't earn enough from the 2014 ATM fees to encourage them to set up more machines in thue countryside. Diokno said ATMs are concentrated in Metro Manila and Calabarzon.
In areas with very few ATMs, Diokno said consumers are short on choice and could end up paying higher fees.
