Regulation of access devices and fraud

The State recognizes technological advances and widespread use of access devices in commercial transactions.
It aims to protect parties' rights and liabilities by regulating issuance and use of access devices.

Access Device: cards, codes, account numbers, PINs, electronic identifiers, or other means to obtain money/goods/services or transfer funds (excluding paper instruments).
Counterfeit Access Device: fake, altered, or forged access devices/components.
Unauthorized Access Device: stolen, lost, expired, revoked, canceled, suspended, or fraudulently obtained devices.
Access Device Fraudulently Applied for: access devices obtained using false documents, info, identities, or misrepresentations.
Consumer: a natural person.
Credit Card: devices for obtaining money, goods, or services on credit.
Device Making or Altering Equipment: equipment for producing or altering access devices.
Finance Charges: costs paid by debtor for credit extension including interest, fees, etc.
Open-end-credit Plan: credit extended allowing ongoing purchases and payments with possible finance charges.
Penalty Charges: fees for late payments.
Produce: includes designing, altering, authenticating, duplicating access devices.
Trafficking: transferring or disposing access devices intending to transfer/dispose.

Applications or solicitations must disclose in writing/orally:
- Annual Percentage Rate (APR), including variability and applicable ranges.
- Annual, periodic, membership, maintenance fees, minimum finance charges, transaction charges.
- Penalty fees for late payments, balance calculation methods, cash advance fees, over-the-limit fees.
For solicitations via catalogs/magazines/publications, must also disclose:
- Accuracy date of information, subject to change.
- Contact details for updated information.

Credit card issuers must provide clear explanations and illustrations of how charges and fees are computed.

Disclosure may be omitted in telephone solicitations if:
- No fees as per Section 4(b)(1) are imposed.
- Fees disclosed in writing within 30 days after card request.
- Consumers informed they are not obligated to accept or pay fees unless card is used.

Card issuers imposing fees must send consumers disclosures at least 30 days before renewal.
Must inform about expiration, renewal date, fee details, and termination methods.
Disclosures must precede fee posting or occur with first billing statement allowing 30 days to avoid payment.

Credit card companies failing to comply with required disclosures may have their authority to issue credit cards suspended or canceled by regulatory authorities after notice and hearing.

Producing, using, or trafficking counterfeit or unauthorized access devices.
Using devices obtained by fraud.
Possession of counterfeit devices or device-making equipment outside lawful business.
Inducing others to commit fraud.
Multiple imprinting to falsify transactions.
Unauthorized disclosure of device information.
Obtaining money/value using devices with intent to defraud.
Unauthorized possession or use of access devices or transaction documents.
Forgery or alteration of sales slips or approvals.
Using devices issued to others for benefit.
Unauthorized solicitation or selling of access device information.

Imprisonment and fines apply up to:
- 6 to 10 years and fines of P10,000 or double value obtained for certain offenses.
- 10 to 12 years and similar fines for other specific offenses.
- 12 to 20 years or fines for offenses committed after prior convictions or attempts.

All conspirators are punished as principals if any act in furtherance is committed.

Persons dealing with articles obtained by fraud (knowingly or should know) are accessories.
Penalty is half that of the consummated offense.
Prosecution can be under this Act or Anti-Fencing Law, whichever has greater penalty.

Possession or control of unauthorized or counterfeit access devices is prima facie evidence of intent to defraud.
Cardholders abandoning residence without notice, with unpaid balance over P10,000 and 90 days overdue, presumed to have intent to defraud.

Holder must notify issuer immediately upon knowledge of loss.
Timely notice absolves holder of liability for fraudulent use from that time onward.

Issuers must annually report access device fraud cases to the Credit Card Association of the Philippines by March 31.
Reports consolidated and submitted to the National Bureau of Investigation.
Banks and financial institutions regulated by Bangko Sentral ng Pilipinas; others by Securities and Exchange Commission.

Prosecution under this Act does not preclude liability under the Revised Penal Code or other laws.

If any provision is declared unconstitutional, remaining provisions remain effective.

Conflicting laws, decrees, orders, or regulations are repealed, modified, or amended accordingly.

The Act takes effect 15 days after its publication in at least two newspapers of general circulation.