DTI suspends extra Credit Card Charges

DTI Administrative Order No. 10
re: Credit Card Purchases

The Philippine Star , Oct 31, 2006
Business Section , page B-4 SpyBIZ by S.A . Maguire


Consumers who have taken to whipping out credit cards to pay for items could take a breather with the recent issuance of Administrative Order No. 10 by the Department of Trade and Industry (DTI) . The draft administrative order prohibits the imposition of additional surcharges on products and services purchased through the use of a credit card.

Shops normally display two prices - one for cash payment and another for credit card - for products and services. Retailers normally impose a surcharge of five to 10 percent or more on products or services that will be paid for via credit card, instead of cash.

Under AO 10, shop owners will be required to display only one tag to indicate the price, which is in keeping with Articles 81 to 83 of the Consumer Act . The move has been lauded by Catanduanes Rep. Joseph Santiago who has been battling for the removal of unfair credit card and bank surcharges through House bill 4630 for almost two years. According to the Credit Card Association of the Philippines (CCAP), there are now almost five million card-carrying Filipinos.

The Philippine Retailers Association (PRA) and the CCAP have been blaming each other for the imposition of the extra charges. According to the PRA, card issuers exact two to three percent of the purchase price as processing fees. Hence, retailers have no choice but to pass on the extra charg to the card holders. CCAP, on the other hand, said it has nothing to do with the extra fees and passed on the blame to the retailers.

Starting Nov. 5, anyone caught violating the DTI order will face up to six months imprisonment or a fine of up to P5,000. A second violation would result in the revocation of the shop's business permit and license.

We encourage the buying public to report violators, this is for the
benefit of everyone.


For inquiries and complaints, you may call DTI Hotline 751-3330 or email:
btrcp@dti.gov.ph
Department of Trade & Industry
Industry & Investments Building
385 Senator Gil Puyat Avenue
Makati
+63 (2) 895 3640

http://www.dti.gov.ph/
http://business.gov.ph/