BSP Caps Interbank Transfer Fees, E‑Wallets and Banks Quickly Cut Charges

The Bangko Sentral ng Pilipinas (BSP) has moved to make person‑to‑person electronic fund transfers more affordable, rolling out new pricing rules that took effect on July 4. Under BSP Circular No. 1238, all supervised financial institutions must set “reasonable and fair market‑based” fees for digital transfers and may only charge extra to cover the actual “switch cost” paid to payment networks.

What changed

The rule requires fees for transfers to other banks or e‑wallets to be broadly aligned with fees for transfers within the same institution, with only the switch cost as a permitted difference. Regulators estimate that switch costs for instant transfers (InstaPay) are about P1.50 per transaction.

The circular also mandates zero fees for electronic payments to micro‑merchants (monthly gross receipts up to P250,000), supporting small businesses that have increasingly relied on digital payments.

Immediate industry response

GCash lowered its InstaPay fee from P15 to P10 effective July 4. Maya announced a cut to P10, effective July 6. Bank of the Philippine Islands (BPI) went further, permanently waiving InstaPay and PESONet fees across its digital channels starting July 1, a change BPI said benefits over nine million enrolled digital customers.

Rizal Commercial Banking Corp. waived InstaPay fees for up to 30 transfers per month on its digital platforms (minimum transaction P100).

Millions of Filipinos use e‑wallets and online banking to send money, pay bills, and shop. Lower transfer costs reduce the expense of everyday transactions, especially for remittances between family members and payments by small merchants.

The requirement to eliminate fees for micro‑merchant transactions helps small vendors keep more of their sales and may encourage more informal businesses to accept digital payments.

Government push and next steps

Finance Secretary Frederick Go has advocated for even lower transfer fees, suggesting a target range of P2–P5 per transaction. Discussions between the Department of Finance, the BSP, and payment providers are ongoing.

BSP Deputy Governor Mamerto Tangonan said the central bank expects prompt compliance and warned institutions that fail to follow the circular could face enforcement actions beginning with warnings. BSP Governor Eli Remolona Jr. indicated more banks could announce fee reductions or waivers in the coming days.

What consumers should check

Review your bank or e‑wallet’s updated fee schedule on its app or website. For frequent small transfers, compare providers by net cost and limits, some promos or fee waivers may have monthly caps or minimum amounts.

Merchants should confirm whether they qualify as micro‑merchants and update payment terms to reflect fee exemptions.