LANDBANK, UnionBank waive retail transfer fees

MORE BANKS have permanently waived their transfer fees in line with the Bangko Sentral ng Pilipinas’ (BSP) push to lower digital transaction costs for Filipinos.

Effective Tuesday (July 7), all person-to-person interbank transfers via Land Bank of the Philippines (LANDBANK) and Union Bank of the Philippines (UnionBank) are now free of charge, the two banks announced separately.

LANDBANK has removed its InstaPay and PESONet fees for retail clients transacting via the LANDBANK Mobile Banking App (MBA) and iAccess, it said in a statement late on Monday. It previously offered limited free small transfers coursed through both payment gateways, with individual transactions beyond the daily limits and amount thresholds charged P15-P50 for PESONet and P8 for InstaPay.

The waiver also extends to its digital bank Overseas Filipino Bank, Inc.

This follows its move to waive fees for eligible person-to-government transactions via QRPh starting June 1.

“Every peso saved on transfer fees is a peso that Filipino families can spend on their daily needs and that businesses can reinvest in growth,” LANDBANK Chairman and Finance Secretary Frederick D. Go said.

“By expanding our zero-fee digital framework from government payments to everyday retail transfers, we want to ensure that our banking services directly uplift our workers, small business owners, and overseas Filipinos. Our focus remains on keeping our platforms secure, reliable, and accessible to everyone, helping our clients stay connected to their families and businesses without the burden of extra costs,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz said.

UNIONBANK
For its part, UnionBank said person-to-person transfers via InstaPay on UnionBank online will now be free. It previously charged P10 for these transactions.

This adds to its lineup of zero-fee services like PESONet transfers, intrabank transactions, bills payments, telco load purchases, and in-store payments via QRPh.

Its digital bank UnionDigital Bank, Inc. already offers free InstaPay and PESONet transfers, subject to a default daily transaction limit of P500,000 that is adjustable up to P10 million.

InstaPay and PESONet are automated clearing houses under the central bank’s National Retail Payment System framework.

InstaPay is a real-time electronic fund transfer facility for transactions up to P50,000 and is mostly used for retail activities, while PESONet is mainly used for high-value transactions and may be considered as an electronic alternative to paper-based checks as transfers are processed settled in batches.

LANDBANK and UnionBank join other financial institutions that have removed or lowered their person-to-person fees to comply with a BSP directive meant to lower retail digital transaction costs.

BSP Circular 1238 issued on June 17, which took effect on July 4, mandates financial institutions like banks, e-wallets, and other payment service providers to adopt reasonable, fair, and market-based pricing for person-to-person transfers.

The central bank said fees charged for person-to-person e-payments between different institutions should not be materially different from charges for transfers within the same entity, with the difference in pricing only being the switch cost, or the fee charged by a clearing switch operator to process these off-us transfers.

It added that institutions should ensure that their fee structures do not result in one user group unreasonably subsidizing the cost of serving another.

“Any differences in fees should be supported by reasonable and directly attributable costs, such as switching or network-related expenses, and should not result in outcomes that discourage interoperability or create undue barriers to interinstitution transactions,” it said in a separate memo clarifying the circular.

Financial institutions are also expected to support their pricing for transactions with an analysis of the actual costs incurred to provide e-payment products and services. — Bettina V. Roc