Higher Price of Purchases by Credit Cards Disallowed

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 goods or services paid via credit card.

DTI Administrative Order No. 10, series of 2006, now prohibits, among others, the imposition of a surcharge, extra charge or additional charge in the use of credit cards, automated teller machine (ATM) cards and debit cards for payment of purchases of consumer products or services. 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.

The same Administrative Order also provides for the following guidelines relative to the mode of payment to determine compliance with Price Tag Law:

1. When the consumer pays in cash, he shall pay only the price indicated in the price tag.

2. When the consumer pays through a credit/ATM/debit card, he shall pay only the price indicated in the price tag.

3. When the retailer offers the consumer an option to pay in cash, card or on installment, the same is allowed provided the payment options shall be disclosed by way of a separate information to the consumer but not in the price tag.

4. Price tag indicating a separate CASH PRICE TAG and REGULAR PRICE TAG on each product or service is not allowed.

5. Price tag indicating a separate CASH PRICE TAG and CARD PRICE TAG on each product or service is not allowed.

The full text of Administrative Order No. 10 is here.

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