The Central Bank of the Philippines (BSP) issued procedural guidelines for operators of payment systems (OPS) applying for a Merchant Acquisition License (MAL), detailing electronic filing, the BSP’s three-phase evaluation process, and the minimum documentary requirements under its merchant payment acceptance framework. The memorandum reiterates that BSP authorisation must be secured before engaging in merchant acquisition in the Philippines, a requirement that has applied since 08 August 2024. Applications and related communications must be submitted electronically to the BSP Payments Supervision and Licensing Department using prescribed subject-line conventions, with supporting documents provided in the required formats and not via shared drives or private file storage links. Incomplete or non-conforming submissions are returned without prejudice to resubmission; applicants must maintain an authorised representative and notify the BSP within five business days of any change, and may reapply six months after a denial or withdrawal once the underlying non-compliance is addressed. The BSP sets out a three-phase process covering eligibility, substantive evaluation and licence issuance, with Phase 1 requiring core corporate documentation, a business plan, local business permits, proof of financial capacity and payment of a non-refundable filing fee, and Phase 2 covering fitness and propriety checks, governance self-assessments, risk management and merchant management and protection policies, and template contracts; Phase 3 requires payment of licensing fees upon approval. MAL applicants fall under Category A or B based on the average monthly value of collected funds transferred to merchants, with capital set at PHP 5 million for less than PHP 100 million and PHP 10 million for PHP 100 million and above; filing fees are PHP 10,000 (Category A) and PHP 20,000 (Category B), and licensing fees are PHP 25,000 (Category A) and PHP 60,000 (Category B), with specified fee offsets for certain registered OPS. Banks and non-bank electronic money issuers that intend to conduct merchant acquisition as part of their normal or permitted business operations do not need to apply for a separate MAL, and can comply through prior notification to the BSP Payments Supervision and Licensing Department with a copy to the relevant Financial Supervision Department.
Central Bank of the Philippines 2025-01-11
Central Bank of the Philippines issues Merchant Acquisition License application guidelines with PHP 5 million to PHP 10 million capital tiers
The Central Bank of the Philippines (BSP) issued guidelines for payment system operators seeking a Merchant Acquisition License, detailing electronic filing, a three-phase evaluation, and required documents. The guidelines outline capital and fee structures based on average monthly fund transfers, with specific categories for applicants. Banks and non-bank electronic money issuers conducting merchant acquisition as part of their operations are exempt from separate licensing but must notify the BSP.