The  Monetary  Board,  in  its  Resolution  No.  694  dated  26  April  2018, approved the Guidelines on the Establishment and Operations of Bank and Non-
 
Bank Credit Card Issuers to implement Republic Act (RA) No. 10870 or the Philippine Credit Card Industry Regulations Law, and accordingly approved the amendments to the relevant provisions of the Manual of Regulations for Non- Bank Financial Institutions (MORNBFI) and Manual of Regulations for Banks (MORB).

SECTION 1. Section 4301N and Appendix N-10; and Section 4320Q and Appendix Q-61 of the MORNBFI are hereby deleted and superseded by the attached Guidelines on the Establishment and Operations of Non-Bank Credit Card Issuers (Annex A*  and its Appendices) which shall be incorporated as C Regulations of the MORNBFI.

SECTION 2. The provisions of Section X320, and its Subsections, of the MORB governing the establishment and operations of Bank Credit Card Issuers are hereby amended as follows:

œSec. X320 Credit Card Operations; General Policy. The Bangko Sentral shall foster the development of the credit card industry to make consumer credit readily available under conditions of fair and sound business practices aligned with global best practices. The Bangko Sentral likewise envisions effective and efficient delivery of credit card services that encourages transparency and competition.

The following rules and regulations shall govern the establishment and operations of all bank credit card issuers, acquirers and all credit card transactions.

œ X320.1 Definition of terms.

a.   Credit card refers to any card or other credit device, including its virtual representation, intended for the purpose of obtaining money, property, goods or services on credit.

b.  Minimum  amount  due  or  minimum  payment  required  refers  to  the minimum amount that the credit cardholder is required to pay on or before the payment due date for a particular billing period/cycle which may include:

(1)  outstanding balance multiplied by the required payment percentage or a fixed amount, whichever is higher;
(2)  any amount which is part of any fixed monthly installment that is charged to the card;
(3)  any amount in excess of the credit line; and
(4)  all past due amounts, if any.

c.   Default  or  delinquency refers  to  non-payment of,  or  payment  of  an amount less than, the œMinimum Amount Due  or œMinimum Payment Required , or words of similar import, for at least three (3) billing cycles, in which case, the œTotal Amount Due  or œOutstanding Balance  for the particular billing period as reflected in the monthly statement of account may be considered in default or delinquent.

d.  Acceleration clause refers to any provision in the contract between the bank and the cardholder that gives the bank the right to demand the full settlement of the obligation in case of default or non-payment of any amount due, or for any valid reason.

e.   Simple annual rate refers to the uniform percentage which represents the ratio between the finance charge and the amount to be financed under the assumption that the loan is payable in one (1) year with single payment upon maturity and there are no upfront deductions to principal.

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f.    Credit card acquirer refers to the institution that accepts and facilitates processing of the credit card transaction which is initially accepted by the merchant.

g.   Credit cardholder refers to a person who owns and benefits from the use of a credit card.
h.   Credit card business activity report refers to a report which contains the quantitative data on the credit card industry.

i.    Credit card issuer refers to a bank that offers the use of its credit card.

j.    Pre-approved credit cards refer to unsolicited credit cards issued by credit card issuers to consumers who have not applied for such credit cards.  Acts  described under Appendix 103  of  the  MORB and  other similar acts are deemed tantamount to the act of issuing pre-approved credit cards, notwithstanding any contrary stipulations in the contract.

k.   Application refers to a request, documented in physical or electronic form with clear and explicit intention and consent of the applicant to avail of a credit card from a credit card issuer.

l.    Balance transfer refers to the transfer of the balance in a credit card account with one (1) credit card issuer to another account under a different credit card issuer subject to terms mutually agreed upon by the parties concerned.

m.  Billing cycle/billing period refers to the period of time between two (2) successive cut-off dates documented in a billing statement and defined under the terms and conditions of the credit card contract/agreement. A billing cycle/billing period shall comprise at least fifteen (15) calendar days.

n.   Card association or payment network or credit card network provider refers to any company that provides credit card network such as, but not limited to American Express, VISA International, MasterCard International, JCB International, Diners Club and China Union Pay.

o.   Cash advances refer to cash obtained by the cardholder from his/her credit card account, availed in any manner as stipulated in the credit card contract/agreement.

p.   Credit card limit refers to the maximum total amount for purchases, cash advances, balance transfers, and finance charges, service fees, penalties, and other charges which can be charged to the credit card. It represents the total loan or credit that a credit card issuer can extend to a cardholder.

q.   Finance charges refer to the interest charged to the cardholder on all credit card transactions in accordance with the terms and conditions specified in the contract/agreement on the use of the credit card.
 
r.    Installment purchases refer to transactions wherein payment for which is amortized in parts over a fixed period.

s.  Industry association refers to an association composed of companies engaged in the business of banking, finance, credit and/or payments.

t.    Membership fee refers to the amount a credit card issuer charges the credit cardholder for the right to use its credit card and acquire access to other membership benefits. This may also be referred to as annual membership fee, annual fee, joining fee or application fee.

u.   Outstanding balance or Total amount due refers to the amount to be repaid as of statement cut-off date.

v.  Statement cut-off date refers to the end date of a billing cycle, as determined by the credit card issuer, when account activities (such as purchases, payments, charges) during the billing cycle are summarized.

w.  Statement of account or billing statement refers to the regular statement listing of the purchases, payments and other debits and credits made to the credit card account within the billing cycle.

x.   Supplementary card or extension card refers to a credit card issued to another person whose credit limit is consolidated with the primary cardholder.

œ X320.2 Minimum requirements for banks operating as credit card issuers.

A duly incorporated bank of good standing which intends to engage in credit card business, may operate as a credit card issuer: Provided, That it submits the following requirements:

a.   Notice to  the  appropriate department of  the  SES that the  Bank will engage in credit card operations; and
b.   Certification under oath executed by the president or officer of equivalent rank of the Bank that it has complied with the relevant risk management standards set out under the MORB, including among others, Credit and Information Technology Risk Management.

œ X320.3 Commencement of operations as credit card issuer. A bank shall commence its credit card operations within six (6) months from its submission of the documents required under Subsec. X320.2 of the MORB. The president or officer of equivalent rank of the bank shall submit a written notice of commencement of business operations within ten (10) banking days therefrom.

œ X320.4 Minimum requirements for the governance and risk management system for credit card operations of Banks. To effectively deliver services, banks must have adequate financial strength, fit and proper board and management and must demonstrate technical and risk management capability to operate a credit card business. Banks shall establish a risk governance  framework   that   includes   policies,   supported   by   appropriate processes and control procedures, designed to ensure that the risk arising from credit card operations are identified, aggregated, monitored and mitigated. The risk governance framework of banks shall be guided by Section X174, as applicable.

At the minimum, the risk management and control systems on credit card operations shall cover:
 
card operations. These shall include limits and thresholds on exposures considering the bank ™s approved credit risk appetite;

b.   Organizational set up and the corresponding roles and responsibilities of personnel in the unit handling the credit card business;

c.   Approach   to   identifying,   assessing,   aggregating,  monitoring,   and reporting risks arising from credit card operations using appropriate risk management tools. This shall likewise include risk mitigation strategies and tools for maintaining risks within thresholds and limits set; and

d.   Internal audit and other independent review of credit card operations.

Written  policies,  procedures  and  internal  control  guidelines  shall  be established on the following aspects of credit card operations:

œ   X320.5  Minimum  requirements for  the  issuance  of  credit  cards. Banks shall not issue pre-approved credit cards as provided under Appendix 703 of the MORB notwithstanding any contrary stipulations in the credit card contract/agreement with the cardholder.

Before issuing credit cards, banks shall conduct know-your-client (KYC) and customer identification procedures, consistent with applicable regulations; and exercise proper diligence in ascertaining that applicants possess good credit standing and are financially capable of fulfilling their credit commitments.

All credit card applications shall undergo a strict credit underwriting process, and information stated thereon shall be verified and validated by authorized personnel of banks, other than those handling marketing.

œ X320.6 Information to be disclosed. Banks shall disclose to each of their existing and potential credit cardholders the following information:

a.   the finance charges for unpaid amounts after payment due date to be paid by the cardholder;

b.   other  charges  or  fees,  individually  itemized,  such  as  membership/ renewal fees, processing fees, over-the-limit fees, collection fees, credit investigation fees and attorney ™s fees to be paid by the cardholder in connection with the transaction and incidental to the extension of credit;

c.   the percentage that the interest/finance charge bears to the total amount to be financed expressed as a simple monthly or annual rate, or a monthly or annual effective interest rate, on the outstanding balance of the obligation, as described in Item œe  of subsection X320.1;

d.   for installment loans, the number of installments, amount and due dates or payment schedules to repay the indebtedness;

e.  the late payment fee/penalty for late payment or similar delinquency- related charges payable in the event of late payments, which shall be computed in accordance with Subsection X320.11;
 
f.    when one (1) or more periodic rates is used to compute interest: each such rate, the balances to which it is applicable, and the corresponding simple annual rate;

g.  in cases when transactions are made in foreign currencies, or for dual currency accounts, or when payments are made in any currency other than the billing currency: the manner of conversion from transaction currency to billing currency; or a general description of the conversion rates;

h.  a reminder to the cardholder in the billing statement, or its equivalent document, that payment of only the minimum amount due or any amount less than the total amount due for the billing cycle/billing period would mean the imposition of interest and/or other charges. A written statement in the following form must be printed in the billing statement:

œImportant Reminder: Paying less than the total amount due will increase the amount of interest and other charges you pay and the time it takes to repay your balance. 

Banks may provide additional reminders to the cardholder, including but not limited to late payment fees that may be imposed on past due or delinquent accounts;

i.    to the extent practicable, a detailed explanation and a clear illustration of the manner by which all interest, charges and fees are computed.

Banks shall notify the cardholder at least ninety (90) calendar days prior to any change in the manner of computation of the outstanding balance and  the  amount  of  fees  to  be  imposed  on  the  cardholder.  If  the cardholder finds the change to be unacceptable, he/she shall have the right to terminate his/her account with the bank, subject to Subsection X320.13 of this regulation;

j.    a  table  of  all  applicable  fees,  penalties,  interest  rates,  conversion reference rates for third currency transactions, and the reason for their imposition, on credit card application forms, billing statements, and in the terms and conditions of the credit card agreement; and

k.   any other information that may be required by the Bangko Sentral.

Banks shall endeavour to convey the above information in a manner that is understandable to the credit cardholder. The items enumerated above may be included in a billing statement on a quarterly basis at the minimum, in tabular format.

The table of fees, penalties, interest rates and reminder shall be printed in plain language, in bold black letters against a light or white background using the minimum Arial 12 theme font and size, or its equivalent in readability, and on the first page, if applicable document has more than one (1) page.

Banks shall ensure that all the above information, conveyed through written or electronic forms of communication, is easy to read for the average person. All consistent with the aforementioned provisions.

Banks shall put in place policies and procedures to ensure timely and effective delivery, either through physical or electronic means, of statement of accounts or billing statements, and other important information related to the credit card account of the cardholder.

œ X320.7 Accrual of interest earned on loans. Accrual of interest earned on loans shall be subject to the provisions of Subsection X305.4 of the MORB.

œ X320.8 Method of computing and imposition of interest or finance charges. Banks shall only charge interest or finance charges arising from the non-payment in full or on time of the outstanding balance based on the unpaid amount of the outstanding balance as of statement cut-off date, but excluding:

a. the current billing cycle ™s purchase transactions reckoned from the previous cycle ™s statement cut-off date, and
b.   deferred payments under zero-interest installment arrangements which are not yet due.

Interest or finance charges shall be imposed on the unpaid outstanding balance as of cut-off date each time a cardholder pays less than, or does not pay on time, the outstanding balance stated in his/her statement of account. Such interest or finance charge shall continue to be imposed until the outstanding balance and applicable interest are fully paid.

For credit card cash advances, a cardholder may be charged cash advance fees and finance charge on the date that the cash is obtained, subject to terms and conditions under the credit card contract/agreement.

For a loan where the principal is payable in installments, interest per installment period shall be calculated based on the outstanding balance of the loan at the beginning of each installment period.

All credit card-related documents shall show repayment schedules in a manner consistent with this provision. Marketing and advertising materials shall likewise be consistent with this provision.

œ X320.9 Payment due date. Payment due date, or the date on which payment of the minimum amount due must be made to the bank, shall be specified in the statement of account or billing statement: Provided, That:

a.   Payment due date shall be the same whatever the mode of payment: Provided, further, That payment through any authorized mode, or made to any accredited payment center of the bank, shall be considered as payment to the bank made on the same date. Accordingly, Service Level Agreements between banks and their accredited payment centers shall be amended to operationalize this requirement.
b.   Notwithstanding any provision in the credit card contract/agreement, if the payment due date falls on a weekend and regular national holidays, the payment due date shall be automatically moved to the next business day and payment thereon shall not be treated as late payment.
 
œ X320.10 Deferral charges. The bank and the cardholder may, prior to the consummation of the transaction, agree in written or electronic form, to a deferral of all or part of one (1) or more unpaid installments; and the bank may collect a deferral charge which shall not exceed the rate previously disclosed pursuant to the provisions on disclosure in Subsection X320.6.

œ X320.11 Late payment fees/penalty for late payment. No late payment fees or penalty for late payment shall be collected from cardholders unless the collection thereof is fully disclosed in the contract/agreement between the bank and the cardholder: Provided, That such fees shall be based on the unpaid minimum amount due or a prescribed minimum fixed amount, whichever is lower: Provided, further, That said fees may be based on the total outstanding balance of the credit card obligation, including amounts payable under installment terms or deferred payment schemes, if the contract/agreement between the bank and the cardholder contains an œacceleration clause  as defined in Item œd  of Subsection X320.1, and the total outstanding balance of the credit card is classified and reported as past due.

œ X320.12 Confidentiality of information. Banks, their directors, officers, employees and agents shall keep strictly confidential the data on the cardholder, except under any of the following circumstances:

a.   when disclosure of information is with the consent of the cardholder, which shall be stipulated in the application forms, the credit card contract/agreement, or any manner allowed by applicable laws, rules and regulations;

b.   upon orders of a court of competent jurisdiction or any government office or agency authorized by law, or under such conditions as may be prescribed by the Bangko Sentral Monetary Board;

c.   when the cardholder information is released, submitted or exchanged with credit information bureaus, industry associations, card associations or payment networks;

d.   when disclosure to third party service providers is necessary for the sole purpose of assisting or rendering services to the bank in enforcing its rights against the cardholder;

e.   when  disclosure  to  third  parties  such  as  insurance  companies  is necessary for the sole purpose of insuring the bank from cardholder default   or   other   credit   loss,   and   the   cardholder  from   fraud   or unauthorized charges; and

f.    when disclosure to third parties is for the purpose of investigating fraud or unauthorized activities or mitigating risk involving card issuance, use and acquiring.

The recipients of information described in Items œa  to œf  above shall likewise be bound to preserve the confidentiality of cardholder data.

The disclosure of cardholder information by banks to third parties shall be subject to applicable laws, rules and regulations on data privacy.

œ X320.13 Suspension, termination of effectivity and reactivation of credit cards; and termination of accounts. Banks shall formulate criteria or parameters for suspension, revocation and reactivation of the right to use the card, and shall include in their contract/agreement with cardholders a provision authorizing  banks  to  suspend  or  terminate  the  credit  card  effectivity,  if circumstances warrant.

A cardholder may cancel or terminate his/her credit card account with any bank anytime: Provided, That the cardholder either pays in full, or enters into another agreement for payment of the outstanding balance and new purchases, debits and deferred installments. Payment may be made either through a one- time payment or on installments within a fixed period of time: Provided, further, That repayment in installments shall only be generally subject to interest, unless there is a violation of the above-mentioned new agreement.

A bank may initiate suspension, cancellation or revocation of a credit card account for any valid reason, as indicated in the terms and conditions of the credit card agreement: Provided, That the cardholder is notified of the suspension/cancellation/revocation within seven (7) business days from the date of suspension/cancellation/revocation. The credit cardholder shall have the right to appeal the suspension/cancellation/revocation subject to mutual agreement with the bank.

œ X320.14 Inspection of records covering credit card transactions; determination of credit card limit; and over-the-limit transactions. Banks shall make available for inspection or examination by the appropriate department of the Supervision and Examination Sector the complete and accurate files on card applicant/cardholder to support the consideration for approval of the application and determination of the credit limit, which shall be in accordance with the verified debt repayment ability and/or net worth of the card applicant/cardholder.

Banks shall determine, based on the credit standing, credit history and financial capacity of the cardholder, the credit limit to be extended to the cardholder.  Banks  may  thereafter  implement  changes  in  the  credit  limit applicable on the account based on their policies: Provided, That the cardholder is notified of such changes: Provided, further, That any credit limit increase may be declined by the cardholder: Provided, finally, That the cardholder has the option to request for a credit limit adjustment upon submission of updated information, but subject to the approval of the bank.

If a cardholder breaches the credit limit by a new transaction, the transaction may be processed, subject to the discretion of the bank as guided by its policies: Provided That fees on over-the-limit transactions, if any, are clearly and prominently disclosed in the table of fees and charges, pursuant to Subsection X320.6.

œ X320.15 Offsets. A bank shall inform the cardholder, through the agreement, contract or any equivalent document governing the use of the credit card that, pursuant to the provisions of Articles 1278 to 1290 of the New Civil Code of the Philippines, as amended, a bank may offset any amount due and payable on the credit card against the cardholder ™s deposits with the bank, if any.

œ X320.16 Handling of complaints, inquiries or requests. Banks shall establish a Consumer Assistance Unit within its organization, which shall be responsible for providing prompt action for the expeditious resolution of credit card related complaints, inquiries and requests.
 
a.   Billing Statement. Banks shall give cardholders up to thirty (30) calendar days from statement date to report any error or discrepancy in their statement of account or billing statement. The manner of reporting or notice of any billing error or discrepancy to the bank may be through written, verbal or any documented means.

The bank shall take action within ten (10) business days from receipt of such notice together with relevant documents or records in physical or electronic form from the cardholder.

Within ninety (90) days after receipt of the notice, banks shall conduct a thorough investigation; shall make appropriate corrections in their records; and send a written explanation or clarification to the cardholder, prior to taking any action to collect the contested amount, subject to the result of the investigation.

Nothing in this Subsection shall be construed to prohibit any action by the bank to collect any amount which has not been indicated by the cardholder to contain a billing error.

b.   Lost  or  Stolen  Cards.  In  case  a  credit  card  is  lost  or  stolen,  any transaction made prior to reporting by the cardholder of the loss or theft of his/her card to the bank shall be for the account of the cardholder: Provided, That this is without prejudice to the right of the cardholder to dispute the transaction, which, if found to be an unauthorized or fraudulent transaction, shall be corrected or reversed by the bank, including any finance charges and other fees related thereto, in accordance with the procedures set forth in the aforementioned regulations.

œ X320.17 Appropriate manner of collection and use of third party collection agents. Banks may resort to all reasonable and legally permissible means to collect amounts due them under the credit card agreement: Provided That in the exercise of their rights and performance of duties, they must observe good faith, reasonable conduct and proper decorum, and refrain from engaging in unscrupulous acts.

Banks may engage qualified third party service providers/collection agents for the purpose of assisting or rendering services in the administration of the credit card business, including recovery of unpaid obligations and enforcement of rights against the cardholder: Provided, That the engagement is in accordance with Bangko Sentral regulations on outsourcing, as applicable: Provided, further, That  the  outsourcing  arrangement  shall  be  covered  by  a  Service  Level Agreement covering the responsibilities and accountabilities of each party.

Notwithstanding any contractual agreement between a bank and service provider/collection agent, the bank shall be responsible to its customers for maintaining customer service standards, without prejudice to further recourse, if any, by the bank to the service provider/collection agent.

A bank or its service provider/collection agent may communicate with a credit cardholder in connection with the collection of any debt through acceptable and
 
reasonable modes. They shall not harass, abuse or oppress any cardholder or any person, or engage in any unfair practices in the collection of credit card debt.

The following activities are considered as guidelines and are not irrebutably presumed to be unfair collection practices. Conversely, not all practices which might under the circumstances be termed unfair are mentioned here. The Monetary Board may now and then consider any other acts/omissions as unfair collection practices:

a.   the use or threat of violence or other criminal means to harm a person, or his/her reputation or property;

b.  the use of obscenities, insults, or profane language which amount to a criminal act or offense under applicable laws;

c.   disclosure of the names of credit cardholders who allegedly refuse to pay debts, except as allowed under Subsection X320.12;

d.   threat to take any action that cannot legally be taken;

e.   communicating or threatening to communicate to any person or entity, credit information which is known to be false, including failure to communicate that a debt is being disputed;

f.    any false representation or deceptive means to collect or attempt to collect any debt, or to obtain information concerning a cardholder; and

g.   making contact at unreasonable/inconvenient hours, defined as contact before 6:00 A.M. or after 10:00 P.M., unless the cardholder has given express permission, or said times are the only reasonable or convenient opportunities for contact.

Banks shall inform their cardholder in writing of the endorsement of the collection of his/her account to a collection agency/agent, or the endorsement of the account from one (1) collection agency/agent to another, at least seven (7) business days prior to the actual endorsement. The notification shall include the full name of the collection agency and its contact details. The requirement to notify in writing shall be included in the terms and conditions of the credit card agreement: Provided, That the bank shall refer the collection of an account to only one collection agency/agent at any one time.

Banks shall adopt policies and procedures to ensure that personnel handling the collection of accounts, whether these are in-house collectors, or third-party collection agents, shall disclose his/her full name/true identity to the cardholder.

œ X320.18 Application of card payment. Upon receipt of a payment from a cardholder whose account carries different interest rates for different types of purchases (i.e., cash advances, regular purchases, balance transfers), the bank shall apply amounts in excess of the minimum payment amount first to the fees and charges, and then to the billed balance bearing the highest rate of interest, followed by the billed balance bearing the next higher rate of interest, until the payment is exhausted: Provided, That the original rates for promotional offers shall be the basis for determining hierarchy of payment.

œ X320.19 Service level agreement among industry players. There shall be, in the Service Level Agreement between acquirers and their partner merchants, a provision requiring merchants to perform due diligence to establish the identity of the cardholders, in accordance with applicable laws, rules and regulations.
 
Nothing in these regulations shall preclude banks from verifying or seeking confirmation with the cardholder any purchase, if in their assessment there is reasonable concern as to the validity of the purchase.

œ X320.20 Sanctions and penal provisions. Violations of the provisions of Section X320 and its Subsections shall be subject to any or all of the following sanctions depending upon their severity:

a.   Consistent with Sec. X009, the Bangko Sentral may deploy enforcement actions to promote adherence with the requirements set forth in this Section and its Subsections and bring about timely corrective actions.

b.   Imposition of penalties and sanctions provided under Section 37 of R.A.
No. 7653.

The provisions of Section 37 shall be made applicable to any bank, acquirer, their directors and officers including, but not limited to, the administrative sanctions that may be imposed, without prejudice to the criminal sanctions against the culpable persons provided in R.A. No. 10870, for any willful violation of such law, or any related rules, regulations, orders or instructions issued by the Monetary Board: Provided, That in addition to the administrative sanctions that may be imposed, the authority of the bank to issue credit cards may be suspended or cancelled by the Bangko Sentral.

c.   Appropriate  monetary  penalties,  sanctions  and  other  enforcement action/s shall be imposed for the following violation/s:

Nature of Violation/ Exception	Possible Sanctions/ Penalties
i. Operating without prior notification to the Bangko Sentral	* Applicable penalty prescribed under Section 37 of R.A. No. 7653, as implemented under Subsection X902.1 of the MORB * Applicable enforcement actions under Sec. X009 of the MORB
ii. Violation of any provisions/requirements of this regulation	* Penalties and sanctions and enforcement actions under applicable laws, such as Section 27 of R.A. No. 10870, rules and regulations, such as, but not limited to Subsections X902.1 and X009 of the MORB
iii. Erroneous/delayed/ unsubmitted reports	* Applicable penalties under Subsection x184.3 of the MORB

œ X320.21 Submission of credit card business activity report. For purposes of transparency and availability of data on credit card operations and in light of ensuring consumer protection, as well as managing risks involved in credit  transactions,  banks  shall  submit  a  monthly  quantitative  report  to  the Bangko Sentral covering the following data on bank credit card issuers/acquirers, cardholders, credit card complaints and usage location:

Cred it Card I ssuance	Un it of Expressi on
I. Cards- i n-f orce per net work/ brand	Nu m be r
II. Cards- i n-f orce per card t ype	Nu m be r
III. Approved credit card appli cati ons	Nu m be r
I V. Cards i ssued by st at us	Nu m be r
V . Cards i ssued per credit li mit	Pes o a m ount
V I. Billi ngs per m ode of t ransacti ons	Pes o a m ount
V II. Billi ngs per net work/ brand	Pes o a m ount
V III. Bill ed f ees/ charges	Pes o a m ount
I X. Gross pay m ent	Pes o a m ount
X . Recei vabl es	Pes o a m ount
XI . Rates/charge s per cardhol der percentage	Pes o a m ount
l X. Gross pay m ent Peso	Pes o a m ount
X . Recei vabl es	Pes o a m ount
X l. Rates/charge s per cardhol der	Pes o a m ount/ percent age

Cardho l der Prof ile	Un it of Expressi on
l. Cardhol der i nf or m ati on (age, occupati on, gender, ci vil st at us, educati onal att ai n m ent, geographic l ocati on)	Nu m be r
ll. Cardhol der by t ype of pay m ent	Nu m be r

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Changes to the existing report format required under this Subsection shall be covered by a separate issuance.

œ X320.22 Voluntary cessation of credit card business. A bank may undertake  voluntary  cessation  of  its  credit  card  business:  Provided,  That  it notifies the appropriate department of the SES and submits a plan of cessation of operations within ten (10) banking days from date of approval of such plan of cessation by the bank ™s Board of Directors.

œ X320.23 Transitory provisions. Banks with existing credit card operations shall be allowed a transitory period to make appropriate adjustments in their systems, processes and personnel to be compliant with the following provisions of this Section:

a.   For Subsection X320.8, which pertains to adjustments in the computation and imposition of interest and finance charges; and for Subsection X320.18 which pertains to the hierarchy of application of credit card payments: within one (1) year from the date of effectivity of this Circular;

b.  For Subsection X320.9(a), which pertains to same day recognition of payments made in accredited payment centers by banks: within nine (9) months from the date of effectivity of this Circular;

c.   For Subsection X320.9(b), which pertains to adjustment of payment due dates falling on weekends and holidays into the next business day: within three (3) months from the date of effectivity of this Circular; and

d.   For   Subsection   X320.11,   which   pertains   to   adjustments  in   the computation of late payment fees or penalty for late payment: within six (5) months from the date of effectivity of this Circular.

SECTION 3. Considering the renumbering of the provisions of the above Subsections, references to the renumbered provisions are correspondingly amended/deleted as shown below:

Subsec ti on/ Appendix	W i th cross- ref erence	O n the :	Ne w Secti on/ Subsecti on
M OR B
X1002. 1	X320. 4	D i scl osure and Transparency	X320. 6
App . 6	X320.1 7	Cred it Card Busi ness Report	X320.2 1
Append ix 103	X320. 3	Pre-Approve d Cred it Cards	X320. 5
M ORNBF I
41002Q . 1/ 4402S.1	4320Q .4	D i scl osure and Transparency	4101C .6
App . Q-3/ App. N -1	4320Q . 16/ 4301N . 16	Cred it Card Busi ness Report	4101C . 21
4702N .1	4320Q .4	D i scl osure and t ransparency	4101C .6
	4301N .5	M etho d of co m puti ng i nterest	4101C .8

SECTION 4. Effectivity. This Circular shall take effect fifteen (15) days following its publication either in the Official Gazette or in any newspaper of general circulation in the Philippines.

FOR THE MONETARY BOARD:

(SGD) DIWA C. GUINIGUNDO
Officer-in-Charge