Generally, no. In the Philippines, a store that accepts credit cards should not add a 2%, 3%, or similar “bank charge,” “processing fee,” or “convenience fee” on top of the displayed selling price merely because the customer pays by card. The basic rule is that the customer should pay the posted price, whether payment is made in cash, by credit or debit card, or through another available digital method. A genuine cash discount may be allowed, but it must not be a disguised card surcharge.

The Basic Rule: The Posted Price Is the Card Price

Suppose a television has a price tag of ₱30,000.

If the store accepts credit cards, it generally cannot tell the customer:

Cash payment: ₱30,000
Credit card payment: ₱30,900
“Terminal fee”: 3%
“Bank processing fee”: ₱900

The additional ₱900 is a credit card surcharge because it is imposed only when the buyer chooses to pay by card.

Department of Trade and Industry Administrative Order No. 10, Series of 2006 expressly prohibits retailers that accept credit, ATM, or debit cards from requiring cardholders to pay an additional amount over the price tag. The order also states that a customer paying by card should pay only the amount indicated on the price tag.

The rule was broadened by DTI Department Administrative Order No. 21-03, Series of 2021. It provides that the selling price must remain the same when payment is made through:

Credit cards
Debit cards
Prepaid cards
QR codes
Electronic fund transfers
Other available digital payment methods

DAO No. 21-03 applies to natural persons and companies, whether registered or unregistered, engaged in selling consumer products or services.

Philippine Laws and Regulations on Credit Card Surcharges

Republic Act No. 7394: Consumer Act of the Philippines

Article 81 of the Consumer Act of the Philippines, Republic Act No. 7394 of 1992, requires retail products to have an appropriate price tag, label, or marking. A product cannot be sold at a price higher than the price publicly displayed, and the rule must be applied without discrimination among buyers. Articles 82 and 83 require clear price markings and prohibit unauthorized alterations. (Supreme Court E-Library)

A card surcharge may therefore create at least two consumer-protection problems:

The merchant is selling the product above its displayed price.
The merchant is discriminating between buyers based solely on the payment method used.

The Consumer Act also prohibits deceptive, unfair, and unconscionable sales practices. A merchant that advertises one price but reveals an unavoidable card charge only at the cashier or final checkout may face a separate issue involving misleading price disclosure. (Supreme Court E-Library)

DTI Department Administrative Order No. 10, Series of 2006

DTI DAO No. 10, Series of 2006 specifically addresses price tags and card surcharges.

It provides that:

A cash-paying customer pays the price on the tag.
A card-paying customer also pays the price on the tag.
Separate “cash price” and “card price” tags are not allowed.
Retailers accepting cards cannot add a surcharge, extra charge, or additional charge above the price tag.
Payment options may be disclosed separately, but not through conflicting price tags.

This means a notice beside the terminal saying “Add 3% for credit card” does not make the charge lawful. Advance notice may help prove that the merchant deliberately imposed the fee, but notice by itself does not override the prohibition.

DTI Department Administrative Order No. 21-03, Series of 2021

DTI DAO No. 21-03 reinforces the same-price rule for modern payment channels.

It is especially relevant when a seller adds fees for:

GCash or Maya payments
QR Ph payments
Online bank transfers
Payment links
Prepaid or stored-value cards
Online credit card checkout

The order also requires businesses to post their available payment options conspicuously in their premises. Businesses with websites or mobile applications must make payment information readily accessible online.

Republic Act No. 10870: Credit Card Industry Regulation Law

Republic Act No. 10870 of 2016 regulates credit card issuers and requires disclosure of interest, finance charges, foreign-currency conversion methods, membership fees, late-payment fees, and other cardholder charges.

These issuer-imposed charges are different from a merchant surcharge. For example, a bank may charge a disclosed foreign transaction or currency-conversion fee under the card agreement. That does not give a Philippine store the right to add its own 3% fee at the point of sale. (Lawphil)

Credit Card Surcharge Versus Cash Discount

Philippine regulations recognize an important distinction between an unlawful card surcharge and a genuine cash discount.

DAO No. 21-03 expressly states that a seller is not prevented from offering a discount from the selling price when payment is made in cash. However, DAO No. 10 prohibits separate cash-price and card-price tags.

A safer compliant structure looks like this:

Regular selling price: ₱20,000 Less genuine cash-payment discount: ₱500 Cash amount payable: ₱19,500 Credit card amount payable: ₱20,000

The card customer is not charged above the selling price. The cash customer receives a separately disclosed discount.

A problematic structure looks like this:

Advertised or tagged price: ₱19,500 Add 2.56% when paying by credit card Credit card amount payable: ₱20,000

In the second example, the advertised price functions as the selling price, and the merchant adds an amount only because a card is used.

Store practice	Likely legal treatment
Adds 3% to the displayed price for card payment	Prohibited surcharge
Calls the extra amount a “bank fee” or “terminal fee”	Still likely prohibited
Displays separate cash and card price tags	Prohibited by DAO No. 10
Keeps one regular selling price and gives a genuine cash discount	Generally allowed
Charges lawful and disclosed installment interest	Not automatically a surcharge
Charges a delivery fee regardless of payment method	Generally a separate service fee
Card issuer charges a foreign-currency conversion fee	Bank-side charge, not a merchant surcharge
Merchant does not accept credit cards at all	Generally permitted

A merchant cannot avoid the rule simply by changing the fee’s name. DTI will normally look at what triggers the charge. If the customer pays extra only because “credit card” was selected, the amount has the substance of a card surcharge.

A purported cash discount may also be questioned when the “regular price” is fictitious, inflated immediately before the promotion, or used to hide the real card price. Misleading price comparisons and deceptive representations may violate other provisions of the Consumer Act. Price-reduction promotions must also comply with applicable DTI sales-promotion rules.

When a Higher Amount May Be Lawful

Not every difference in the final bill is necessarily an illegal credit card surcharge.

Installment financing

An installment purchase may cost more than a straight cash or straight-card purchase because the transaction involves financing over time.

DAO No. 21-03 provides that:

Interest must be expressly stipulated in writing.
The buyer must be informed of other fees and charges.
The seller cannot collect advance interest covering more than one year.
The seller must observe applicable rules on ownership documents and repossession.

The key question is whether the added amount is a genuine, documented financing cost or merely a fee for using the card.

For example:

₱40,000 for straight cash or straight credit card payment
₱44,000 total under a documented 12-month installment arrangement

The ₱4,000 difference may be financing-related. By contrast, charging ₱41,200 for a straight credit card transaction simply because the processor takes a merchant fee is generally prohibited.

Separately provided services

A delivery charge, booking fee, insurance charge, or platform service fee may be lawful when it pays for a distinct service and is imposed independently of the chosen payment method.

However, a “convenience fee” deserves closer scrutiny when:

It appears only after the customer chooses credit card payment.
It is calculated as a percentage of the card transaction.
It disappears when cash or bank transfer is selected.
The merchant cannot identify a separate service being provided.
It was not disclosed until the final checkout page.

For internet transactions, Republic Act No. 11967 of 2023, the Internet Transactions Act, and its implementing rules reinforce the obligation of online merchants to disclose prices consistently with the Consumer Act. Hidden or misleading checkout charges may create additional consumer-protection issues. (Lawphil)

Bank or card-issuer charges

A cardholder may separately see:

Foreign transaction fees
Currency-conversion fees
Installment processing fees
Cash-advance fees
Interest or finance charges

These are normally imposed by the issuing bank under the cardholder agreement, not by the store. They must be evaluated under the bank’s disclosures and Republic Act No. 10870 rather than the DTI merchant-surcharge rule. (Lawphil)

What to Do When a Store Adds a Credit Card Fee

1. Confirm the displayed selling price

Before paying, check:

The price tag
Shelf label
Menu
Quotation
Online product page
Order summary
Promotional advertisement

Take a clear photo or screenshot showing the product, price, date, and business name where possible.

2. Ask for an itemized explanation

Calmly ask the cashier or manager:

What is the exact additional amount?
Is it charged only for card payments?
Where was it disclosed?
Will it appear on the official invoice?
What regulation supposedly authorizes it?

Statements such as “the bank charges us 3%” usually confirm that the merchant is attempting to pass its card-processing cost to the buyer.

3. Refer the merchant to the DTI rules

You may state that DTI DAO No. 10, Series of 2006 prohibits retailers accepting cards from charging above the price tag, and DAO No. 21-03 requires the selling price to remain the same for card and other available digital payment methods.

Ask the manager to:

Remove the surcharge before processing the card
Void and reprocess the transaction correctly
Refund the difference if the card has already been charged
Issue a corrected invoice or credit memo

4. Preserve evidence even if the surcharge is refunded

Keep copies of:

Price-tag photographs
Receipts or invoices
Credit card terminal slips
Screenshots of checkout pages
Signs announcing the surcharge
Text messages, emails, or chat conversations
Names or positions of the staff involved

Do not publish your complete card number, CVV, expiration date, or account information. Redact all but the last four digits when submitting evidence.

5. File a DTI consumer complaint

Credit and debit card surcharges are expressly listed as a category on the DTI consumer complaint form. Complaints may be submitted through the DTI Consumer CARe System, by email where applicable, or through the nearest DTI regional or provincial office. (Fair Trade Enforcement Bureau)

Your initial complaint should contain:

Your complete name, address, email address, and contact number
The merchant’s complete business name and address
A concise narration of what happened
The date, time, and place of the transaction
The amount of the surcharge
Your requested resolution, such as refund of the excess charge
Proof of transaction
A copy of a government-issued ID

DTI guidance identifies the narration, demand, proof of transaction, party details, and complainant’s government-issued ID as core initial requirements. (E-Sigaw)

Documents That Strengthen a DTI Complaint

Document	Why it matters
Photo of the price tag or menu	Establishes the represented selling price
Receipt or sales invoice	Shows the amount actually collected
Card terminal slip	Confirms the card transaction amount
Credit card statement	Shows the amount posted to the account
Photo of the “add 3%” notice	Shows the merchant’s payment policy
Online checkout screenshots	Shows when and how the fee appeared
Written request for a refund	Proves that the merchant was given an opportunity to correct the charge
Merchant response	May contain an admission that the fee covers card-processing costs
Government-issued ID	Required for complaint verification
Merchant’s full legal name and address	Helps DTI serve notices on the correct respondent

For an initial mediation complaint, consumers normally submit a complaint form or letter with supporting documents. If mediation fails and the consumer proceeds to formal adjudication, DTI requires a verified, dated, and signed complaint containing the parties’ details, material facts, evidence, requested relief, and a certificate of non-forum shopping. (Fair Trade Enforcement Bureau)

A foreign cardholder has the same consumer-protection interest in a Philippine retail transaction. A passport may be used as government identification. When a formal verified complaint must be sworn outside the Philippines, the complainant should confirm with the handling DTI office whether execution before a Philippine consular officer or a foreign notary with an apostille is required.

What Happens After a DTI Complaint Is Filed?

Mandatory mediation

DTI mediation is intended to help the consumer and merchant reach an amicable settlement. A practical settlement in a surcharge case may include:

Refund of the additional fee
Correction of the invoice
Removal of the surcharge policy
Written assurance that the practice will not continue

Mediation is mandatory before a consumer may file a formal complaint with the DTI Adjudication Division. If no settlement is reached, the Mediation Division may issue a Certificate to File Action. (Fair Trade Enforcement Bureau)

Formal adjudication

The consumer may then file the verified formal complaint. Once the case is accepted, the parties are generally directed to submit position papers within 10 working days from receipt of the Notice of Adjudication. The adjudication officer may require additional evidence or conduct a clarificatory hearing. (Fair Trade Enforcement Bureau)

DTI states that a decision is issued within 15 working days after the case is considered submitted for decision. That is not necessarily 15 days from the original complaint. Actual elapsed time may be longer because of notice delivery, incomplete documents, responses from the merchant, hearing schedules, or requests for additional evidence. (Fair Trade Enforcement Bureau)

Possible Penalties and Remedies

The exact penalty depends on the provision under which the merchant is charged.

For violations of the price-tag provisions under Articles 81 to 83 of the Consumer Act, a first conviction may result in:

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

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

Where the conduct is prosecuted as an unfair or unconscionable sales practice under Article 52, Article 60 provides for a fine of ₱500 to ₱10,000, imprisonment of five months to one year, or both. A court may also issue an injunction or award appropriate damages in cases covered by the law. (Supreme Court E-Library)

In an administrative case, DTI may impose remedies or sanctions such as:

A cease-and-desist order
A voluntary assurance of compliance
Restitution or rescission
Reimbursement of money connected with the complaint
Administrative fines from ₱500 to ₱300,000
An additional fine of up to ₱1,000 for each day of a continuing violation

The amount depends on the gravity and circumstances of the offense.

For an ordinary consumer, the most practical remedy is usually reimbursement of the unlawful surcharge and correction of the merchant’s pricing practice.

Should You Also Contact the Credit Card Issuer?

Yes, especially when the amount charged to the card is different from the amount you expressly authorized.

Contact the issuing bank promptly and provide:

The receipt
The card slip
The posted price
Your correspondence with the merchant
A clear explanation of the disputed difference

A bank may treat an authorized merchant surcharge as a pricing dispute rather than an unauthorized transaction, so reversal is not guaranteed. However, the complaint creates a record and may allow the bank or acquiring institution to investigate the merchant’s conduct.

Complaints concerning the bank’s own handling of the dispute must first be raised through the bank’s Financial Consumer Protection Assistance Mechanism. If unresolved, the matter may be escalated through the BSP Consumer Assistance Mechanism, including the BSP Online Buddy or the BSP consumer affairs email channel. BSP escalation is for concerns involving BSP-supervised financial institutions, while the complaint against the store itself ordinarily belongs with DTI. (BSP)

Frequently Asked Questions

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

Generally, no. A merchant that accepts cards cannot add 3% above the displayed selling price merely because the buyer uses a credit card.

Can the store call it a “processing fee” instead of a surcharge?

Changing the name does not change the nature of the charge. If it is imposed only because of card or digital payment, it is likely a prohibited surcharge.

Can a store offer a lower price for cash?

Yes, a genuine discount from the regular selling price may be offered for cash payment. The merchant should maintain one regular selling price and disclose the cash discount separately. Separate cash-price and card-price tags are prohibited.

Can a store refuse to accept credit cards?

Generally, a private store is not required to accept credit cards. It may operate on a cash-only basis or limit its available payment channels. The prohibition applies when the store accepts a card but charges above the selling price because the customer used it.

Does the rule apply to debit cards, GCash, Maya, and QR payments?

DAO No. 21-03 covers debit cards, prepaid cards, QR codes, electronic fund transfers, and other available digital payment methods. The selling price should remain the same.

Are online “convenience fees” always illegal?

Not always. A genuine fee for a separate service may be valid. However, a fee that appears only when credit card payment is selected, particularly one calculated as a percentage of the transaction, may be a prohibited payment surcharge.

Can an installment purchase cost more than the cash price?

Yes, when the difference represents properly disclosed and documented installment interest or financing charges. Interest must be stipulated in writing. A simple fee for using a card in a straight-payment transaction is different.

Can a Philippine store charge more because I am using a foreign-issued card?

The store should not charge above its selling price solely because the card is foreign-issued. Your issuing bank may separately impose foreign transaction or currency-conversion fees under your card agreement.

Can I recover a surcharge I already paid?

You may demand a refund from the merchant and file a DTI complaint if the merchant refuses. Preserve the price tag, receipt, card slip, statement, and any written admission that the additional amount was a card fee.

Do I need a lawyer to file a DTI complaint?

A lawyer is not ordinarily required for DTI mediation or the simplified consumer adjudication process. The consumer should nevertheless prepare a clear chronology, identify the correct merchant entity, and attach complete evidence.

Key Takeaways

A Philippine store that accepts credit cards generally cannot charge above the displayed selling price because the customer used a card.
Calling the charge a bank fee, terminal fee, or processing fee does not automatically make it lawful.
A genuine cash discount may be allowed, but separate cash and card price tags are prohibited.
The same-price rule also covers debit cards, prepaid cards, QR payments, electronic transfers, and other available digital methods.
Preserve the price tag, receipt, card slip, checkout screenshots, and merchant communications before filing with DTI.
DTI mediation comes first; formal adjudication is available when mediation fails.
Bank-imposed foreign transaction, conversion, interest, or installment charges are separate from merchant-imposed card surcharges.