In the Philippines, a store that accepts credit, debit, or ATM cards generally cannot charge you more than the displayed price simply because you are paying by card. If an item is tagged at ₱10,000, the merchant should not add a 2%, 3%, or 5% “processing fee,” “terminal fee,” or “bank charge” at checkout. Philippine consumer rules require one clear price and prohibit retailers from passing a card surcharge to the customer over and above that price.

Philippine law on credit card surcharges

The main legal bases are:

Republic Act No. 7394 (1992), or the Consumer Act of the Philippines, particularly Articles 81 to 83 on price tags.
DTI Department Administrative Order No. 10, Series of 2006, which specifically prohibits surcharges for credit, ATM, and debit card payments.
For online purchases, Republic Act No. 11967 (2023), or the Internet Transactions Act, and its implementing rules under Joint Administrative Order No. 24-03.

Under the Consumer Act of the Philippines, consumer goods offered for retail sale must carry an appropriate price tag, label, or marking. As a rule, the product cannot be sold at a price higher than the amount shown.

DTI Administrative Order No. 10, Series of 2006 makes the rule more specific:

A cash-paying customer must pay only the price indicated on the price tag.
A customer paying by credit, ATM, or debit card must also pay only the price indicated.
Separate “cash price” and “card price” tags are not allowed.
A retailer accepting cards may not require the cardholder to pay an additional surcharge over the tagged price.

The price tag must also generally include value-added tax when the product is subject to VAT. A retailer cannot display a VAT-exclusive consumer price and add VAT only when the customer reaches the cashier.

What counts as an illegal credit card surcharge?

The DTI looks at the substance of the transaction, not merely the name given to the fee. Calling an added charge a “convenience fee” does not automatically make it lawful.

Store practice	Likely treatment
“Price: ₱10,000. Add 3% for credit card.”	Prohibited card surcharge
Item tagged at ₱10,000 but cashier charges ₱10,300 for card payment	Prohibited card surcharge
“₱10,000 cash; ₱10,300 credit card” displayed on separate tags	Not allowed under the one-price-tag rule
A card-only “terminal fee” added to the bill	Likely prohibited surcharge
Merchant adds its bank’s processing cost to card users	Generally prohibited
Service charge imposed equally regardless of payment method	Not a card surcharge, although it must still be properly disclosed and lawful
Bank charges the cardholder foreign-exchange or finance fees	Not a store surcharge
Properly disclosed installment interest charged by the bank or financing provider	Generally a financing charge rather than a retail card surcharge

The clearest violation is an amount added only after the customer says, “I will pay by credit card.” A handwritten sign beside the terminal stating “plus 3% for card” does not cure the violation. It is evidence of the surcharge.

The merchant’s card-processing cost, often reflected in a merchant discount rate or merchant fee, is ordinarily part of the merchant’s cost of doing business. DTI Administrative Order No. 10 prevents the retailer from separately transferring that cost to the cardholder over the displayed consumer price. (Bangko Sentral ng Pilipinas)

Can a store offer a cash discount?

A genuine cash discount is different from adding a fee to the displayed price, but stores must structure it carefully.

DTI rules prohibit putting separate “cash price” and “card price” tags on the same product. They also provide that price-reduction promotions, including discount sales, must comply with the applicable sales-promotion rules. DTI has previously explained that retailers offering promotional cash discounts should obtain the required sales-promotion authority and display clear, readable information about the promotion. (LPR ADB)

The practical distinction is:

Surcharge: The displayed price is ₱20,000, but the cardholder is required to pay ₱20,600.
Possible promotional discount: The regular displayed price is ₱20,600, payable by accepted methods, while a properly documented and disclosed promotion gives qualifying cash customers a discount.

A merchant cannot avoid the rule merely by calling the higher card amount the “regular price” after first advertising the lower amount as the product’s actual selling price. DTI may examine the advertisement, shelf tag, quotation, sales invoice, checkout screen, and what the customer was told before payment.

What about installment prices and “0% installment” offers?

DTI Administrative Order No. 10 allows a retailer to offer cash, card, and installment options, provided the options are disclosed separately and are not placed on competing price tags.

This does not give a merchant unlimited authority to add a percentage merely because the card transaction will be converted to installments.

Before agreeing to an installment purchase, ask for:

The product’s selling price
The number and amount of installments
The total amount payable
Any interest or processing fee
Whether the charge comes from the merchant, card issuer, or financing company
Whether an early-payment or cancellation fee applies

A genuine bank installment plan may involve interest or separately disclosed financing charges. Those charges arise from the credit arrangement, not from the store simply penalizing the customer for using a card.

For a “0% installment” offer, check whether the total of all installments is truly equal to the disclosed installment purchase amount. “Zero percent interest” does not necessarily mean that the product receives the same promotional discount available under another payment arrangement.

Credit card issuers must separately disclose applicable card fees and finance charges under Republic Act No. 10870 (2016), the Philippine Credit Card Industry Regulation Law, and Bangko Sentral ng Pilipinas regulations. (Lawphil)

Does the rule apply to online stores and payment apps?

Online merchants are also subject to Philippine price-disclosure and consumer-protection rules.

The implementing rules of the Internet Transactions Act require online merchants to indicate prices consistently with Article 81 of the Consumer Act. E-marketplaces exercising oversight over transactions must require product offers to show the price inclusive of taxes and other charges.

A potential violation may occur when:

A social-media seller advertises an item at ₱5,000 but demands ₱5,150 for card payment.
A website shows one price until the customer selects “credit card,” after which a card-processing fee appears.
A seller sends a payment link that automatically adds a percentage not disclosed in the original offer.
The checkout page labels a mandatory card surcharge as a “system fee” even though the merchant requires the customer to pay it.

Save screenshots showing:

The advertised product and price
The seller’s account or store name
The payment-method selection page
The added fee
The final order confirmation
Your conversation with the seller or platform
The electronic invoice and card transaction record

For an online transaction, the consumer should first use the platform’s or online retailer’s internal complaint mechanism. Under the Internet Transactions Act rules, this remedy is deemed exhausted when the complaint remains unresolved seven calendar days after filing. The matter may then be brought to the appropriate government agency.

What to do when a store adds a credit card fee

1. Confirm the displayed price

Take a photograph of the shelf tag, menu, quotation, advertisement, or checkout screen. Make sure the photo shows enough context to identify the product and establishment.

For services without a physical price tag, save the written quotation, booking page, menu, promotional post, reservation confirmation, or message stating the agreed price.

2. Ask the manager to remove the surcharge

Calmly explain that DTI Administrative Order No. 10 prohibits retailers from charging more than the displayed price for credit or debit card payment.

Ask for:

Removal of the added fee before payment; or
A refund of the surcharge if the transaction has already been completed.

Request to speak with the branch manager, supervisor, customer-service unit, or Consumer Welfare Desk. Cashiers may simply be following store instructions and may not have authority to reverse the charge.

3. Preserve all transaction records

Keep copies of:

Price-tag or menu photographs
Advertisements and screenshots
Sales invoice or official transaction document
Card terminal slip
Card statement or banking-app screenshot
Written quotation
Messages with the merchant
Name and address of the branch
Date and approximate time of the incident
Name or position of the employee or manager spoken to
Written refund request and the merchant’s response

The strongest evidence usually shows both the original displayed price and the higher amount actually charged.

4. File an initial consumer complaint with DTI

Complaints may be submitted through the DTI Consumer Care online portal. Metro Manila complainants may also submit a complaint letter or form by email to consumercare@dti.gov.ph or personally to the DTI Fair Trade Enforcement Bureau in Makati. Consumers elsewhere may file with the appropriate DTI regional or provincial office. (Fair Trade Enforcement Bureau)

The DTI Initial Complaint Form specifically lists “Imposition of Credit/Debit Card Surcharge/s” as a complaint category. (Fair Trade Enforcement Bureau)

State clearly:

What was advertised or displayed
How much the store charged
That the additional amount was imposed because of card payment
When and where the transaction occurred
What you did to resolve the problem directly
The remedy you are requesting, usually refund of the surcharge and discontinuance of the practice

An initial complaint should include copies rather than the only originals of your evidence.

5. Attend DTI mediation

Mediation is mandatory before a formal consumer complaint proceeds to adjudication. A DTI mediation officer helps the consumer and merchant negotiate a voluntary settlement.

Under the revised rules, DTI generally issues a mediation notice within three working days at the applicable stage. The mediation proceedings are intended to be completed within seven working days after the notice is served on the business, subject to an agreed extension of up to ten working days. Delays often occur when the establishment’s registered address is outdated, the branch has closed, or the notice cannot be served.

A consumer who cannot personally attend may use a representative with written authority expressly allowing the representative to enter into a settlement. This is particularly useful for overseas Filipinos and foreign customers who have already left the Philippines.

6. Proceed to formal adjudication if mediation fails

If the dispute is not settled, DTI may issue a Certificate to File Action, allowing the consumer to pursue formal adjudication.

The formal complaint must generally be:

Verified, dated, and signed
Supported by the Certificate to File Action
Accompanied by documentary or object evidence and any witness statements
Clear about the remedy requested
Accompanied by a certification against forum shopping

A certification against forum shopping is a sworn declaration that the complainant has not filed another case involving the same issues in another court or tribunal, subject to the qualifications stated in the certification. (Fair Trade Enforcement Bureau)

After receiving a Notice of Adjudication, a party generally has a non-extendible period of ten working days to submit a position paper with proof that it was served on the other party. DTI states that a decision should be issued within 15 working days after the case is submitted or deemed submitted for decision. A lawyer is not mandatory. (Fair Trade Enforcement Bureau)

Documents and practical details

Item	What to prepare
Identification	Government-issued ID or other identification requested by DTI
Merchant details	Business name, branch, address, website, social-media account, and contact information
Proof of advertised price	Price-tag photo, menu, quotation, advertisement, or screenshot
Proof of payment	Invoice, terminal slip, order confirmation, or card statement
Proof of surcharge	Receipt line item, sign, checkout screenshot, written message, or recording lawfully obtained
Narration	Chronological account stating who, what, when, where, and how much
Requested remedy	Refund, correction of the transaction, and discontinuance of the surcharge
Formal adjudication documents	Verified complaint, Certificate to File Action, evidence, and certification against forum shopping

A foreign consumer receives the same protection when dealing with a retailer in a Philippine consumer transaction. Philippine citizenship is not a condition for objecting to an unlawful surcharge. However, a fee imposed by the consumer’s foreign bank for currency conversion, cross-border processing, or use of a foreign-issued card is different from a surcharge imposed by the Philippine store.

Penalties for stores imposing card surcharges

DTI Administrative Order No. 10 adopts the penalties under Articles 95 and 164 of the Consumer Act.

For a first conviction involving violations of the price-tag provisions, the law provides for:

A fine of ₱200 to ₱5,000;
Imprisonment of one to six months; or
Both, at the court’s discretion.

A second conviction may result in revocation of the business permit and license.

Following formal administrative investigation, DTI may also impose remedies such as:

A cease-and-desist order
An assurance of compliance
Reimbursement or restitution
Rescission of the transaction
An administrative fine of ₱500 to ₱300,000, depending on the gravity of the offense
An additional fine of up to ₱1,000 for each day of a continuing violation

The amount of an individual surcharge may be small, but repeated collection from numerous customers can support stronger enforcement action.

Consumer Act claims generally prescribe, or become legally time-barred, within two years from the consummation of the consumer transaction or commission of the deceptive, unfair, or unconscionable practice. Consumers should not wait until the end of that period before filing. (Lawphil)

Common problems that weaken a complaint

Paying without documenting the original price

A receipt showing ₱10,300 does not by itself prove that the displayed price was ₱10,000. Photograph the tag or save the advertisement before it is changed.

Complaining only to the card issuer

The issuing bank may help when the merchant charged more than the amount you authorized. However, a complaint about the merchant’s pricing practice ordinarily belongs with DTI. Keep the bank dispute and DTI complaint separate and explain what relief you are seeking from each.

Naming only the mall or payment gateway

Identify the actual retailer or service provider. Include its trade name, branch, invoice details, and, when available, its registered corporate or business name.

Treating a foreign-exchange fee as a store surcharge

Compare the merchant’s terminal slip with your card statement. If the terminal slip matches the displayed peso price but your foreign bank later adds a conversion fee, the added amount may be a bank charge rather than a Philippine retailer surcharge.

Missing mediation without notice

The DTI complaint form warns that an initial complaint may be treated as withdrawn if the complainant or authorized representative fails to appear at mediation without good cause. Monitor your email, phone, and spam folder after filing. (Fair Trade Enforcement Bureau)

Frequently Asked Questions

Is a 3% credit card charge legal in the Philippines?

Generally, no. A retailer accepting cards cannot add 3% over the displayed price merely because the customer pays by credit card.

Can a store have one cash price and another credit card price?

Separate cash and card price tags are prohibited. A properly structured promotional cash discount may be treated differently, but it must not be a disguised surcharge and must comply with applicable DTI sales-promotion rules.

Does the prohibition apply to debit cards?

Yes. DTI Administrative Order No. 10 expressly covers credit, ATM, and debit card payments.

Does the rule apply to small businesses?

Yes. The order applies to retailers and retail sales to consumers. A business does not become exempt merely because it is a small shop, clinic, restaurant, salon, or home-based seller.

Can restaurants and hotels add card fees?

A restaurant or hotel generally cannot add a fee solely because a customer uses a card. A properly disclosed service charge applied regardless of payment method is a different issue.

Can an online seller add a payment-gateway fee?

A seller that advertises one price and adds a mandatory card-only payment fee at checkout may violate the price-disclosure and surcharge rules. Save the entire checkout sequence and first use the platform’s internal complaint mechanism.

Are minimum credit card purchase amounts illegal?

A minimum card purchase is not the same as a surcharge, and DTI Administrative Order No. 10 does not expressly establish a universal minimum-purchase rule. The practice may nevertheless conflict with the merchant’s agreement with its acquiring bank or card network, or become misleading if card acceptance was advertised without disclosing the restriction.

Can a store refuse to accept my credit card?

A merchant is not generally required to accept every credit card. It may limit accepted networks or decline a transaction for legitimate operational or security reasons. But once it accepts card payment for the transaction, it cannot charge above the displayed price merely because a card is used.

Does the rule apply to foreign-issued credit cards?

The store should still honor the Philippine displayed price. However, the foreign card issuer may separately charge currency-conversion, cross-border, or foreign-transaction fees under the cardholder’s agreement.

Can I recover a surcharge I already paid?

Yes, you may first request a direct refund from the establishment. If it refuses, submit the receipt, proof of the displayed price, and other evidence to DTI and request reimbursement through mediation or adjudication.

Key Takeaways

Philippine retailers generally cannot charge more than the displayed price for credit, debit, or ATM card payments.
Labels such as “processing fee,” “terminal fee,” and “bank charge” do not legalize a card-only surcharge.
Separate cash and card price tags are prohibited.
Genuine cash discounts and installment financing must be properly structured, disclosed, and compliant with applicable rules.
Photograph the price and keep the invoice, card slip, screenshots, and merchant communications.
File through DTI Consumer Care or the appropriate DTI office when the merchant refuses to remove or refund the surcharge.
Consumer Act claims should generally be filed within two years of the transaction or prohibited practice.