The Central Bank of the Philippines published frequently asked questions on amendments to the National Retail Payment System Framework and the rules for merchant payment acceptance activities, giving implementation guidance on Circular No. 1238. The guidance makes clear that the new pricing framework for person-to-person electronic fund transfers is not an ex ante price control regime. Instead, BSP-supervised institutions must base fees on documented and verifiable costs, keep supporting cost analyses on file, and make them available if requested during supervisory or oversight reviews. The pricing mechanism applies only to domestic person-to-person electronic fund transfers processed through InstaPay or PESONet. It does not cover card transactions, corporate or merchant transactions, or cross-border payments. Institutions may use their own cost analysis formats and internal methods for allocating shared costs, provided assumptions are documented and verifiable. Material fee differences will be assessed case by case through post-disclosure review, particularly where disclosed fees appear comparatively high. Segment-based pricing is allowed if it is transparent, consistently applied within each segment, and does not lead to unreasonable cross-subsidization or outcomes that undermine interoperability. Where on-us transfers are free, off-us fees must still be limited to reasonable directly attributable costs such as switching expenses, and providers that charge no fee for P2P transfers remain outside the prescribed pricing structure. On merchant due diligence, the FAQs state that the circular does not create new requirements but aligns wording with existing anti-money laundering and counter-terrorism financing rules in the banking and non-bank manuals. Merchant onboarding remains risk based, and reduced due diligence may be used for low-risk merchants. For small or informal merchants, acceptable evidence may include a national ID and documents or information showing the business exists, such as barangay permits, self-attestation, digital storefronts, social commerce profiles, or sustained wallet activity.
Central Bank of the Philippines2026-06-17
Central Bank of the Philippines clarifies cost based pricing rules for domestic P2P transfers and risk based merchant onboarding
The Central Bank of the Philippines clarified that its amended payment rules require fees for domestic P2P transfers through InstaPay and PESONet to be grounded in documented costs, but do not introduce prior approval of prices. High or differentiated fees may be reviewed after disclosure, and off-us charges must reflect reasonable directly attributable costs. The FAQs also confirm that merchant due diligence changes mainly align with existing AML and CTF rules and allow risk-based simplified onboarding for low-risk small or informal merchants.