Cash price vs. credit card price

November 3, 2006

In an Administrative Order recently issued by the Department of Trade and Industry (DTI), stores are now prohibited from imposing any extra charges, on top of the cash price, for purchases of consumer goods or services using credit card, automated teller machine (ATM) cards and debit cards. In other words, stores cannot impose any extra charges on top of the cash price for purchases of goods or services paid via credit card. Violators face a penalty of imprisonment of up to six months. This is provided in Department Order No. 10 (series of 2006), which takes effect 15 days from publication. (See also: Credit cards – How to Stay Ahead of Runaway Credit Card Debt)

6 Responses to Cash price vs. credit card price

  1. Pinoy Stupid on November 3, 2006 at 1:56 pm

    That’s great to hear. In clothes stores, they impose up to about a hundred pesos more on a single article of clothing if you decide to charge it. I’ve always wondered why some of them had to do it when others could offer credit card payments without extra charges.

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  2. Arbet on November 3, 2006 at 2:01 pm

    It’s about time! It should have been made retroactive, so that the fleecing can be reversed.

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  3. Sef on November 3, 2006 at 2:21 pm

    at last!!!

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  4. Eric on November 9, 2006 at 9:08 am

    Sorry to be a bit pessimistic.
    I wouldn’t get my hopes on this.
    I think the vendors will just..by default.. bump up the prices on listed on their price tags, then offer a “discount” for cash buyers.
    Kung baga, binaligtad lang nila yung pricing.

    I’ve seen this done in a number of appliance and gadget stores.
    Before making a purchase, I ask them :
    ME: may surcharge ba ito kung gamitin ko ang credit card ko?
    Store Clerk: WALA SER.
    ME: Great!
    Store Clerk: Pero ser, may discount kayo ng 5% if you pay in cash.

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  5. Jerome on March 22, 2008 at 5:34 pm

    For me, the order don’t really have much impact. I mostly use my credit cards on stores with no extra charges. If not, I just pay cash or even avoid buying on such stores unless it is really necessary.

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  6. johnson on November 5, 2008 at 7:50 am

    kung natupad na yung batas na yan, bakit marami paring store ang gumagawa ng ganun, lalong lalo na sa mga malls (mga nagtitinda ng cellphone), pag cash prices mas mura. pag credit card mas mahal ang price.

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