ATM Service Fees Philippines: The Ways To Minimize Them?

The ATM system is a powerful assistant that helps banks reduce transaction load and increase diverse customer experiences. However, with each transaction, customers must pay a small fee, which varies depending on the provider.

This article will provide information regarding ATM service fees Philippines and how you can minimize them. Keep reading and save on the smallest expenses!

What Is The ATM System?

The ATM, also known as an Automatic Teller Machine, is a type of self-service that banks provide to customers who are cardholders. This device allows them to make transactions via bank cards without going to the counter. Its service can help customers minimize waiting time and quickly transact.

In April 2021, the Bangko Sentral ng Pilipinas (BSP) released the Acquirer-Based ATM Fee Charging (ABFC) regulations, which govern how ATM service costs are assessed. This system ensures investors and equipment installers do not abuse the practice of charging fees on every transaction and protect their rights.

One of the notable regulations is that the withdrawal cost ranges from ₱10 to ₱18, and the balance check fee does not exceed ₱2.50. ABCF is considered a premise for expanding this self-service system nationwide with low prices and reliable service.

ATM Service Fees Philippines 2023

Withdraw Cash

Cashing out is the process of withdrawing cash from your account. For most banks, as long as the amount you want to draw is not less than ₱100, you can completely use ATMs to withdraw with your card, whether from the same or a different bank.

Most ATM transactions and cards issued by the same banks are uncharged. On the contrary, if the ATM and card are different financial institutions, the cardholder will be charged additional fees depending on the amount you withdraw and the brands. Specifically:

Balance Inquiry

If cardholders are unsure how much money is left in their account, they can use the balance inquiry transaction at ATMs. The banks always provide this service for free to their customers, but for non-customers, you have to pay a small fee.

Transfer

Instead of going to the counter, you can use ATMs for money transfers. The two most commonly used terms are intrabank – transfer to another account within the same banks and interbank – transfer to another account not in the same banks. Most banks offer free intrabank services and charge a certain fee for interbank, such as:

Minimum Balance

When the balance in your account is lower than the regulations, banks can implement below minimum balance fees (MBF) for at least two consecutive months. Suppose the ratio is lower than the minimum for over a year (or 12 months). 

In that case, the bank may stop providing cardholder-specific benefits, block basic functions such as withdrawal or transfer, and even close the account.

Dormancy

This fee is for accounts that have not had any activity or transactions within 5 years. The fine cannot exceed 30 pesos per month according to Bangko Sentral ng Pilipinas (BSP) regulations.

How To Save ATM Service Fees In The Philippines

• Plan withdrawals and inquiries: maybe twice a month with enough money to spend during that time instead of repeating it many times and adding a large amount of fees to accumulate
• Maintain a balance above the minimum level: Some banks deduct very little or waive the monthly fee if your credit exceeds the minimum level or reaches a fixed milestone. Furthermore, you can also receive interest on the money in your account
• Create a card at a bank with a widespread ATM network: limit the need to make transactions at another bank’s ATM with high fees
• Limiting cash transactions: means saving on withdrawal fees; you can also receive many incentives when purchasing via scanning cards or QR codes.
• Use alternative services: popular services such as Internet banking, scanning QR codes or cards to reduce the costs of taking out cash, or transferring money and easily accessing the balance.

Final Thoughts

ATM service fees Philippines are much higher when transacting with different banks than with the same ones. Each transaction cost is usually not too high, but only if you do not add it up. Minimizing costs can save you a bulk of money. Moreover, you may also receive interest from the bank.

You should make a specific consumption plan, minimize the use of cash, and use alternative services to lessen the amount of your unnecessary spending!