‘ATM fee policy to benefit users’

The Bangko Sentral ng Pilipinas (BSP) has defended its acquirer-based automated teller machine (ATM) fee charging policy, calling it “more advantageous” as it promotes transparency.

Consumers line up at different automated teller machines inside a mall in Makati City. (TMT File Photo)

In a statement on Thursday night, the central bank said the policy “supports the implementation of a more straightforward way of imposing fees, as well as enhancements in fee-disclosure requirements.”

Under this policy, a financial institution (FI), such as a bank, can set ATM fees for noncustomers while keeping its ATM withdrawal and balance-inquiry services free for its customers. Currently, banks charge their cardholders the same fees for transacting at other ATMs.

According to the BSP, the policy pushes for transparency as fees have to be disclosed to cardholders before they transact.

“ATM users will be able to make better, more informed decisions on how and where they wish to transact based on ATM fees posted in the ATM terminals,” it said.

The policy will also allow banks with ATM services to be “reasonably compensated” for servicing nonclients, it added. This would incentivizing them to set up more terminals and consequently widen the reach of banking services in the country.

“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,” the central bank said.

“BSP-supervised FIs are required to employ safeguards to ensure that their clients can safely and conveniently use ATMs,” it added.

Banks are set to adopt the policy on April 7 to fulfill a requirement imposed by the BSP after it lifted the moratorium on adjusting ATM fees in July.

Once in effect, withdrawal fees would range from P10 to P18. For the past seven years, fees have been between P10 and P15.

The BSP assured that it “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 statement comes after the Bankers Association of the Philippines welcomed the policy on Wednesday, with its chief Benjamin Castillo expressing the group’s appreciation for the central bank’s “move to adopt this pricing philosophy that is market-driven and customer-centered.”

“This policy promotes competition and efficiency in the banks’ effort to deliver better services to the banking public,” he added.

But consumer advocacy group Laban Konsyumer Inc. (LKI) told The Manila Times that the policy’s imminent implementation was still “not appropriate” at this time, given that coronavirus pandemic and the threat it poses still persist.

LKI President Vic Dimagiba said that although the policy would ensure that depositors would easily access their money anywhere and anytime in the same bank, and comply with health protocols, it is “counterproductive to the cashless policy.”|

“Banks should give rewards to the depositors that patronize the ATM facilities. [They should] add more mobility and transfer options,” he insisted.

WITH A REPORT FROM MAYVELIN U. CARABALLO

Source: ManilaTimes