Different Cash and Credit Card prices not allowed

Be informed: it is unlawful to charge or be charged two prices — a Cash Price and a Credit Card Price — for the same product.

Department of Trade and Industry (DTI) Undersecretary Zenaida Maglaya, in an interview with ABS-CBN’s Mornings@ANC, issued a reminder to establishments that the law forbids the imposition of additional charges on items purchased through credit cards.

Based on Article 81 of Republic Act 7394 (“Consumer Act of the Philippines”), goods and services must not be sold at a higher price that what is stated and without discrimination to all buyers.

According to Maglaya, several firms deceive consumers by supposedly offering “discounts” when paying cash. Some gadgets and appliance stores, she says, charge customers higher price if the purchase is via credit card and a “discounted” price if via cash.

Customers who were tricked into paying the credit card surcharge are encouraged to report the incident to the DTI hotline number 7513330. Violators may be fined up to P300,000 and slapped with a possible revocation of their business permit and license.

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15 thoughts on “Different Cash and Credit Card prices not allowed”

  1. Thanks for the info as I was really unaware. This is a usual practice among computer retail shops kasi nakabili ako nitong buwan lang.

  2. @Ferdie, actually the rule has been there all along. It’s just that it’s not properly enforced which, in turn, causes merchants to continue charging two different prices. If we want this practice to stop, let’s report this to the DTI.

    @Josef, it’s really like that since there’s no proper implementation of the law. Even big appliance stores charge a Cash Price and a Credit Card Price until now.

  3. Actually the added percentage doesn’t go to the store but to the banks. BDO/HSBC/BPI, etc collect that certain % added to the CC charge.

    Usually the bank collects 2-6% depending on the volume. Imagine if this is the margin of the computer stores what will be left of their margins?

    The DTI should also require the BSP to lessen these fees that the banks collects. That’s why cash is still king for merchants. The CC only makes it easier because it adds more sales but in the end the profit should also be considered.

  4. marami nga akong nakitang ganyan sa mga dyario. like un auto. mas mura pag cash. akala ko natural lang na ganyan kasi on-the-spot cash nga naman.

  5. Whether it goes to the merchant’s pocket or the banks, that point is moot in the eyes of a consumer. Basically, you mean that the merchants pass on the expense of the bank’s service to the consumer? As a credit card holder, that sounds like I’m not only paying for the annual fees for the privilege to use a card, but also for the merchants’ enjoyment of having credit card facilities as well whenever I make a transaction?

  6. I think that this is an unnecessary intervention into the marketplace. A credit card is a convenience that I can choose. Why should others have to pay more for goods because of my choice? I should be responsible for and suffer the consequences of my choices (in this case in slightly higher fees).

    This is just a gift by the regulators to the big banks and the wealthy and upper middle class, who are the ones with credit cards. It interferes with and distorts the free market, and raises prices for all, especially the poor. It should be scrapped.

  7. Do you really want to implement this? Think about it. If you were the retailer, would you lower your “credit card” price to “cash” price, or would you rather raise your “cash” price to “credit card” price? I think the latter would happen.

    Now, if there is a difference between credit card and cash price, at least we have the option to “save” money by buying it with cash rather than with CC. With CC, you’re paying the CC company AND the store, so it’s just logical that the store would want to pump up the price of the good/s you’re buying.

  8. I just purchased an A/C at SM Makati today.
    They are charging P11,850 for the credit card purchase (straight cash payment)
    P11,450 for credit card purchase (6 months lay-away promo)
    and P11,295 for cash.
    I usually purchase using CC and pay in full when it reflects on my bill.
    I find it odd that I will pay alot more if I do what I always do.
    I told them upfront that what they are doing is illegal.
    They just answered with a shrug and a seemingly canned answer that the “promo” only applies to 6 months lay away program and cash payment.
    Will report this tomorrow to DTI.


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