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New ATM surcharge.


Jess Bartone

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Jess Bartone

When I send my wife money, she uses an ATM card I gave her, which is in the Cirrus/Maestro network (I think owned by Visa). Normally, my bank charges 3% conversion charge, and Cirrus/Maestro charges $5. So, for example, if I want to send her PHP4,000, I go to www.xe.com and convert 4 thou to AUD, which at the time of posting was AUD$95.55, X 1.03 (3%) + 5 = $103.41 (so I would just transfer $105 to the card). On today's rate, it cost me around $8 to send 4 thou pesos. I can live with this, because it is a temporary arrangement, and Western Union charges a flat AUD$25 to send up to (I think) $5 thou.

 

So you can imagine my horror when Mary says it showed "insufficient funds" (there had been a slight dip in the AUD overnight). It was then she saw the notification stuck on the BDO bank window that said from the 20th of March, all foreign ATM cards will be subject to a surcharge of 200PHP (close to $5 AUD), automatically included in the withdrawal, so if you enter the amount of 4,000 pesos, the ATM automatically debits 4,200 from your account, but only gives you 4 thou, credits itself 200PHP.

 

Ok, so it's not going to break the budget, but I am outraged that the bank can do this, particularly when they get a commission already from Cirrus/Maestro. It represents a 62.5% increase in my transfer charges.

 

Is this legal, or just another Institutional Philippines "Kano tax"?

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And it's the local banks that do it!   China Bank seems to have a lot of branches in the Philippines - http://www.chinabank.ph/personal/

Woolf

ya and it does not help much to try another bank

metrobank charged 150 piso on feb 17 2010

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CardiacKid

The only ATM I have seen recently that does not have a 150 peso surcharge for using a foreign issued ATM card is BPI. In the U.S. this is common practice if you withdraw money from another bank"s ATM.

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udonthani

what's annoying is that they don't seem to have made any announcement about it, or if they did, I never heard of it. It just started appearing on my ATM receipts in October.

 

it seemed to me that the charge was 100 pesos, not 150, but still quite annoying. Apparently, one or two banks don't charge this, but with the Philippines financial infrastructure being so appalling, if you're travelling around the place, you don't really have the time to go to an ATM that might save you 100 or 150 pesos. They don't work so often, I'm grateful that it works at all.

 

oh, and by the way it isn't of course a 'kano' tax, as a moment's thought ought to tell anyone. 'Kano' means white people, who are, always have been, and always will be comfortably outnumbered by non-white foreigners in the Philippines.

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The only ATM I have seen recently that does not have a 150 peso surcharge for using a foreign issued ATM card is BPI. In the U.S. this is common practice if you withdraw money from another bank"s ATM. I think Bank of America started the trend. Only relief is to make the largest withdrawals possible and minimize the number of withdrawals. My personal feelings about Bank of America can't be posted on a family forum.

 

I think Cary got it right when he said 'Kano' tax as in it is not a foreign card tax but related to a US bank charge. I have NEVER been charged one Centavo in 4 years for using an ATM here using my British Visa Debit card.

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Jess Bartone

The only ATM I have seen recently that does not have a 150 peso surcharge for using a foreign issued ATM card is BPI. In the U.S. this is common practice if you withdraw money from another bank"s ATM. I think Bank of America started the trend. Only relief is to make the largest withdrawals possible and minimize the number of withdrawals. My personal feelings about Bank of America can't be posted on a family forum.

 

I think Cary got it right when he said 'Kano' tax as in it is not a foreign card tax but related to a US bank charge. I have NEVER been charged one Centavo in 4 years for using an ATM here using my British Visa Debit card.

 

 

I, or my wife, have been using Australian ATM cards in the Philippines for three years+, and never copped this new surcharge ("tax") before, which commenced March 20 2010 (as was posted). The international ATM system (Cirrus/Maestro) is owned by Visa (can anyone confirm this?), so I'm not surprised a Visa debit card attracts no fees. But I'm sure the card does attract some monthly fees.

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CardiacKid

Jessee, the notice I see on the ATM screen states that any ATM card used that is not issued in the Philippines is subject to the fee. That is in addition to any other fees you pay when you use your ATM card. So, while it seems a Kano Tax, it is unavoidable if you use that ATM. I still prefer that to any other way to get money in this country. My balance stays offshore, safely out of the hands of the Philippine banking system and outside the control of the Philippine Central Bank and the Philippine Congress. I realize this is just one more incentive for foreigners to retire here, in the new tourism capital of Asia. Guess I'll just have to get a larger tube of lubricant and designate it for ATM use. Getting harder to grab my ankles as I age.

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Jess Bartone

I have no choice but to accept the inevitable, but I wonder why, for me, it has just started, when others have apparently been paying 150P for some time, and why mine is 200P. Ahhh sweet mysteries of life in the Philippines.

 

I will now investigate the alternatives, such as an HSBC premier account, and a visa debit card, but before doing so, I will definitely be asking my local bank (ANZ) why these new charges.

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I have no choice but to accept the inevitable, but I wonder why, for me, it has just started, when others have apparently been paying 150P for some time, and why mine is 200P. Ahhh sweet mysteries of life in the Philippines.

 

I will now investigate the alternatives, such as an HSBC premier account, and a visa debit card, but before doing so, I will definitely be asking my local bank (ANZ) why these new charges.

 

JesseB

 

I can't comment on this new BDO charge started on 20th but earlier comments say P150 has been around for some time & I use lots of different bank ATM's & NEVER been charged any LOCAL fee. Visa themselves charge 1% on ALL transactions through my UK bank whether paying the bill at SM or using ATM is the same.

 

Uzi

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AussieDave

I have no choice but to accept the inevitable, but I wonder why, for me, it has just started, when others have apparently been paying 150P for some time, and why mine is 200P. Ahhh sweet mysteries of life in the Philippines.

 

I will now investigate the alternatives, such as an HSBC premier account, and a visa debit card, but before doing so, I will definitely be asking my local bank (ANZ) why these new charges.

 

 

If you have a citibank atm near you in the phils? there are no atm fees for the 1st 2 transactions...............no monthly fees either its called online saver. I use it all the time. url citibank.com.au

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Cairnsman

It will be of no consolation to you Jesse but apparently the banks in Thailand have also recently started applying a 'fee' for the use of foreign cards in Thai ATMs. I think the amount mentioned on thaivisa.com was 200 baht.

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A_Simple_Man

. . . My balance stays offshore, safely out of the hands of the Philippine banking system and outside the control of the Philippine Central Bank and the Philippine Congress.

 

Yeah . . . glad that works for you. I used to think similar thoughts until I got THIS email from my Canadian bank manager this morning. (My crime . . not being in Canada when they apparently audited me . . thus not showing up for a tax audit and therefore being found guilty)

 

 

Good Morning Dave,

 

 

 

As per our notes, Revenue Canada has placed a requirement to pay on your account.

 

The amount that they say is owing is XXXXXXX.

 

Your contact person is XXXXXXX and the number to contact them is XXXXXXXXX ext. XXXX3.

 

So until you call and make arrangements with Revenue Canada we will have to keep the Court Order message on your account,

 

which will keep all funds frozen.

 

When we receive confirmation from them that there are arrangements in place we then can remove the hold.

 

 

 

Let me know if there is anything else I can do.

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musicman666

hong kong bank are very sneaky .they charge some nominal ammount per withdrawl but they lace the exchange rate so it doesnt show on the statement ..nice one.

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broden

. . . My balance stays offshore, safely out of the hands of the Philippine banking system and outside the control of the Philippine Central Bank and the Philippine Congress.

 

Yeah . . . glad that works for you. I used to think similar thoughts until I got THIS email from my Canadian bank manager this morning. (My crime . . not being in Canada when they apparently audited me . . thus not showing up for a tax audit and therefore being found guilty)

 

 

Good Morning Dave,

 

 

 

As per our notes, Revenue Canada has placed a requirement to pay on your account.

 

The amount that they say is owing is XXXXXXX.

 

Your contact person is XXXXXXX and the number to contact them is XXXXXXXXX ext. XXXX3.

 

So until you call and make arrangements with Revenue Canada we will have to keep the Court Order message on your account,

 

which will keep all funds frozen.

 

When we receive confirmation from them that there are arrangements in place we then can remove the hold.

 

 

 

Let me know if there is anything else I can do.

wow that sucks Dave

 

gonna be able to take care of it from the RP or are you gonna have to fly to Canada?

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