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June 19, 2024

BSP nearing agreement with banks to scrap fees on small transactions

Bangko Sentral ng Pilipinas Governor Felipe M. Medalla expressed confidence in the ongoing negotiations with banks and payment operators to eliminate fees on small transactions of P500 and below.

Although the agreement is yet to be finalized, Medalla remains positive about the progress being made.

Recognizing the hindrance posed by fees on small transactions, Medalla highlighted the challenge of determining the specific details of fee waivers. The complexity lies in deciding whether large supermarkets should be included in the privilege of zero fees and the need for a process in such cases.

These factors have contributed to the delay in reaching a final agreement on waiving charges for small bank-to-bank payment transactions.

In order to qualify for zero fees, there may be a requirement for small merchants to register, but concerns have been raised about the willingness of some merchants to undergo the registration process.

Medalla suggested treating every person-to-person transaction as a merchant and allowing the operating system to identify the true merchant as data evolves.

He emphasized the positive discussions with bankers and their commitment to making the agreement work. While waiving fees for transactions of P500 or less is manageable for banks, they seek clarity on cost recovery and alternative sources of revenue.