(NAR) VOL. 22 NO. 2, APRIL - JUNE 2011
ACCESS DEVICE, as defined under Republic Act No. 8484, means any card, plate, code, account number, electronic serial number, personal identification number, or other telecommunications service, equipment, or instrumental identifier, or other means of account access that can be used to obtain money, goods, services, or any other thing of value or to initiate a transfer of funds (other than a transfer originated solely by paper instrument).
ACQUIRING BANK is a bank that has a relationship with the credit card company or electronic payment service provider and the Government Entity’s Authorized Government Depository Bank (AGDB) where it has an account. It is sometimes referred to as the clearing bank where e-payment transactions are cleared through. In such case, the Acquiring Bank shall be authorized by the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DOF) as an Authorized Agent Bank (AAB).
APPLICATION PROGRAMMING INTERFACE (API) is an interface implemented by a software program to enable interaction with another software.
CASH CARD is a plastic card that provides an alternative payment method to cash. Funds for payment are deducted from the remaining balance/stored value on the card of the holder.
CONVENIENCE FEE is the additional amount charged for the bona fide convenience of using an access device, such as, but not limited to, a credit card, debit card or cash card, in the form of an alternative payment channel outside the Government Entity’s customary payment channel which is the face-to-face/over the counter transaction within the premises of the Government Entity. The convenience fee is collected in addition to the actual amount of fees, charges, assessments or revenues due to a Government Entity which is made through the Government Entity’s Electronic Payment and Collection System (EPCS) which can be accessed by the client anytime and anywhere. However, the convenience fee will not be part of the collection of the Government Entity but will go to the account of the Electronic Payment Service Provider. The imposition of the convenience fee shall be subject to the conditions specified in this JDAO.
CREDIT CARD is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to purchase goods and services on credit based on the holder’s promise to pay the value therefore with the issuer of the card. The same issuer of the card grants a credit line to the user from which the user can borrow money for payment to a merchant, in this case a Government Entity.
DEBIT CARD is a plastic card issued by banks that provides an alternative payment method to cash. Funds for payment are withdrawn directly from the bank account of the holder.
E-MONEY, as defined under Bangko Sentral ng Pilipinas (BSP) Circular No. 649, Series of 2009, shall mean monetary value as represented by a claim on its issuer, that is – (a) electronically stored in an instrument or device; (b) issued against receipt of funds of an amount not lesser in value than the monetary value issued; (c) accepted as a means of payment by persons or entities other than the issuer; (d) withdrawable in cash or cash equivalent; and (e) issued in accordance with this Circular.
ELECTRONIC MONEY ISSUER shall be classified as (a) Banks; (b) Non-bank Financial Institutions supervised by the BSP; and (c) Non-bank Institutions registered with the BSP as a money transfer agent under Section 4511N of the Manual of Regulations for Non-Bank Financial Institutions.
ELECTRONIC PAYMENT SERVICE PROVIDER offers merchants, including government entities, online services for accepting electronic payments by a variety of payment methods. This term shall be used in this JDAO as a general term to include Acquiring Banks, Issuing Banks, Electronic Money Issuers, and other Electronic Payment Service Providers.
ISSUING BANK is the bank that issues the credit card, debit card or cash card directly to the consumers. It assumes primary liability for the consumer’s capacity to pay for the expenses incurred with their card.
- The convenience fee shall be imposed on a per transaction basis and shall be agreed upon by the Government Entity and the Electronic Payment Service Provider. The amount of the convenience fee shall be specified in the service agreement/contract between the Government Entity and the Electronic Payment Service Provider.
- Transacting clients shall be duly informed of the convenience and other fees by the Government Entity before payment commences and shall be given the opportunity to opt out.
- Further, the Government Entity shall, through various means, inform its clients on the imposition of convenience fees for transactions using access devices in accordance with the provisions of this JDAO.
- The convenience fee shall be processed as a separate and unique transaction and shall not be included in the total amount collected by the government entity.
- A confirmation of payment or proof of payment shall be generated and shall indicate the breakdown of amounts paid for the transaction. The convenience fee shall be reflected separately for transparency and proper accounting. The Electronic Official Receipt (EOR) for government collections shall be covered by the guidelines to be issued by the Commission on Audit (COA).
- The Acquiring Bank, Issuing Bank, electronic Money Issuer, or other Electronic Payment Service Provider shall credit all government collections to the Clearing Account of the Government Entity/Treasurer of the Philippines (TOP). All collections deposited at the Clearing Account shall be credited to the liability account due the TOP with the designated AGDB in accordance with the period acceptable to the Bureau of the Treasury (BTr). The AGDB, Acquiring Bank, Issuing Bank, Electronic Money Issuer, or other Electronic Payment Service Providers shall comply with the relevant requirements specified in DTI-DOF JDAO No. 2, Series of 2006, DOF Department Order 27-05, and other related rules and regulations.
Recommending Approval: | |
(SGD.) THOMAS G. AQUINO | (SGD.) GIL S. BELTRAN |
Senior Undersecretary | Undersecretary |
Department of Trade and Industry | Department of Finance |
Approved: | |
(SGD.) JESLI A. LAPUS | (SGD.) MARGARITO B. TEVES |
Secretary | Secretary |
Department of Trade and Industry | Department of Finance |