Regulation of access devices and fraud

Policy and purpose

Section 2 recognizes advances in technology and the widespread use of access devices in commercial transactions.
Section 2 requires regulating the issuance and use of access devices to protect the rights and define the liabilities of parties in commercial transactions.
Section 2 directs the State to define liabilities by regulating access-device issuance and use.

Core definitions

Section 3 defines “Access Device” as any card, plate, code, account number, electronic serial number, personal identification number, telecommunications service, equipment, or instrumental identifier, or other means of account access 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).
Section 3 defines “Counterfeit Access Device” as any access device that is counterfeit, fictitious, altered, or forged, or an identifiable component of such counterfeit device.
Section 3 defines “Unauthorized Access Device” as any access device that is stolen, lost, expired, revoked, canceled, suspended, or obtained with intent to defraud.
Section 3 defines “Access Device Fraudulently Applied for” as any access device applied for or issued on account of the use of falsified document, false information, fictitious identities and addresses, or any form of false pretense or misrepresentation.
Section 3 defines “Consumer” as a natural person.
Section 3 defines “Credit Card” as any card, plate, coupon book, or other credit device existing for obtaining money, goods, property, labor or services, or any thing of value on credit.
Section 3 defines “Device Making or Altering Equipment” as equipment, mechanism, or impression designed or primarily used for making, altering, or re-encoding an access device or a counterfeit access device.
Section 3 defines “Finance Charges” as amounts incident to the extension of credit such as interest or discounts, collection fees, credit investigation fees, and other service charges.
Section 3 defines “Open-end-credit Plan” as a consumer credit extended on an account under which the creditor may permit purchases or loans from time to time directly or indirectly by using a credit card or other service, the person may pay the balance, and finance charge may be computed from time to time on an unpaid balance.
Section 3 defines “Penalty Charges” as amounts imposed on the credit card holder for non-payment of an account within a prescribed period in addition to interest.
Section 3 defines “Produce” as including design, alter, authenticate, duplicate, or assemble.
Section 3 defines “Trafficking” as transferring or disposing of to another, or obtaining control with intent to transfer or dispose of.

Credit card application and solicitation disclosures

Section 4 requires that any application to open a credit card account for any person under an open-end credit plan, or any solicitation to open such an account, disclose specified information.
Section 4 requires disclosure in writing or orally, depending on the solicitation method used.
Section 4 requires disclosure of the Annual Percentage Rate of interest on the amount of credit obtained by the credit card holder under the plan, including disclosure that the rate is variable when variable, the annual percentage rate in effect at the time of the mailing, and the range of balances to which different rates apply when more than one rate applies.
Section 4 requires disclosure of Annual and other Fees, including any annual fee, other periodic fee, membership fee for issuance or availability of the credit card, any account maintenance fee or any other charge based on activity or inactivity during the billing cycle.
Section 4 requires disclosure of minimum finance charge for each period during which any extension of credit subject to finance charge is outstanding.
Section 4 requires disclosure of any transaction charge imposed in connection with use of the card to purchase goods or services.
Section 4 requires disclosure of any fee, penalty or surcharge imposed for delay in payment of an account.
Section 4 requires disclosure of the Balance Calculation Method and the Cash Advance Fee and the Over-the-Limit-Fee when extension of credit exceeds the authorized credit amount.

Additional disclosure for catalog or print

Section 4 imposes additional disclosure requirements when the application or solicitation is made through catalogs, magazines, or other publications.
Section 4 requires a conspicuous and prominent statement that the disclosed information is accurate as of the date the application or solicitation was printed.
Section 4 requires a conspicuous and prominent statement that the disclosed information is subject to change after that printed date.
Section 4 requires telling the applicant to contact the creditor about changes since the printed date.
Section 4 requires stating the date the application or solicitation was printed.
Section 4 requires, in a conspicuous and prominent location, a toll free telephone number or mailing address to obtain changes since the printed date.

Computation and detailed charge explanation

Section 5 requires that, in addition to Section 4 disclosures, a credit card issuer provide a detailed explanation and a clear illustration of how all charges and fees are computed.
Section 5 requires this provision “to the extent practicable” in the computation explanation and illustration.

Exceptions for telephone solicitations

Section 6 allows omission of the disclosures required under Section 4 in telephone solicitation or application if the credit card issuer meets all specified conditions.
Section 6 requires the issuer not impose any fee connected with Section 4 (b)(1) as a condition for omission.
Section 6 requires that the issuer not impose any telephone-solicitation fee unless the consumer signifies acceptance by using the card.
Section 6 requires the issuer to disclose clearly the Section 4 information in writing within thirty (30) days after the consumer requests the card, and in no event later than the card delivery date.
Section 6 requires the issuer to disclose clearly that the consumer is not obligated to accept the card or account and will not be obligated to pay fees or charges disclosed unless the consumer elects to accept by using the card.

Disclosure prior to renewal and fee posting

Section 7 requires renewal-related disclosures by a card issuer that imposes any fee described in Section 4 (except in telephone solicitations).
Section 7 requires a clear and conspicuous disclosure transmitted to the consumer’s credit card account stating the date, month, or billing period by which the account will expire if not renewed.
Section 7 requires transmitting the Section 4 information at least thirty (30) days prior to the scheduled renewal date of the consumer’s credit card account.
Section 7 requires transmitting the Section 4 information described in Section 4 (a)(1) to the consumer’s credit card account.
Section 7 requires disclosing the method by which the consumer may terminate continued credit availability under the account.
Section 7 requires that disclosures must be made prior to posting the fee described in Section 4 (b)(1) to the account.
Section 7 allows a condition where the first periodic billing statement disclosing the fee is used, but the consumer must be given a thirty (30) day period to avoid payment of the fee or obtain re-credit if the consumer does not wish to continue credit availability.

Consequences for failure to disclose

Section 8 provides that credit card companies that fail to disclose information required under Sections 4, 5 and 7 may have their authority to issue credit cards suspended or cancelled.
Section 8 requires due notice and hearing before suspension or cancellation.
Section 8 names the decision-making regulators as the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, and such other government agencies.

Unlawful access-device fraud acts

Section 9 declares the following acts unlawful and constitutes access device fraud.
Section 9 prohibits producing, using, or trafficking in one or more counterfeit access devices.
Section 9 prohibits trafficking in one or more unauthorized access devices or access devices fraudulently applied for.
Section 9 prohibits using, with intent to defraud, an unauthorized access device.
Section 9 prohibits using an access device fraudulently applied for.
Section 9 prohibits possessing one or more counterfeit access devices or access devices fraudulently applied for.
Section 9 prohibits producing, trafficking in, having control or custody of, or possessing device-making or altering equipment without being in the business or employment that lawfully deals with the manufacture, issuance, or distribution of such equipment.
Section 9 prohibits inducing, enticing, permitting, or allowing another for consideration or otherwise to produce, use, traffic in counterfeit access devices, unauthorized access devices, or access devices fraudulently applied for.
Section 9 prohibits multiple imprinting on more than one transaction record, sales slip, or similar document making it appear the device holder entered into a transaction other than those lawfully contracted for, and submitting such extra sales slips through an affiliated merchant who connives or presenting them under false pretenses of being an affiliated merchant, and similar documents.
Section 9 prohibits disclosing any information imprinted on the access device (including account number or name or address of the device holder) without the device holder’s authority or permission.
Section 9 prohibits obtaining money or anything of value through use of an access device with intent to defraud or to gain and then fleeing thereafter.
Section 9 prohibits possessing without authority from the owner of the access device or access device company an access device, or materials such as slips, carbon paper, or any other medium on which the access device is written, printed, embossed, or otherwise indicated.
Section 9 prohibits writing or causing to be written on sales slips issuer approval numbers when no approval was given, or when approval was given but what is written is deliberately different from the approval actually given.
Section 9 prohibits making, without authority of the access device holder, any alteration of any amount or other information written on the sales slip.
Section 9 prohibits effecting a transaction with one or more access devices issued to another person or persons to receive payment or any other thing of value.
Section 9 prohibits, without authorization of the issuer of the access device, soliciting a person to offer an access device or selling information regarding or an application to obtain an access device.
Section 9 prohibits, without authorization of the credit card system member or its agent, causing or arranging for another person to present for payment evidence or records of transactions made by credit card.

Penalties for access device fraud

Section 10 provides that a person committing any acts constituting access device fraud under Section 9 is punished based on the specific subsection.
Section 10 imposes a fine of PHP 10,000 or twice the value obtained, whichever is greater, plus imprisonment of not less than six (6) years and not more than ten (10) years for offenses under Section 9 (b)-(e), and (g)-(p) that do not occur after a conviction for another offense under Section 9.
Section 10 imposes a fine of PHP 10,000 or twice the value obtained, and imprisonment of not less than ten (10) years and not more than twelve (12) years for offenses under Section 9 (a) and (f) that do not occur after a conviction for another offense under Section 9.
Section 10 imposes either a fine of PHP 10,000 or twice the value obtained, or imprisonment of not less than twelve (12) years and not more than twenty (20) years, or both, for offenses under Section 9 that occur after a conviction for another offense in the applicable subsection, or for an attempt to commit the same.

Conspiracy and related stages

Section 11 provides that if two (2) or more persons conspire to commit offenses listed in Section 9 and one or more conspirators do an act to effect the object of the conspiracy, each party is punished as if doing the act that is the object of the conspiracy.
Section 12 provides that frustrated access device fraud is punished with two-thirds (2/3) of the fine and imprisonment provided for the consummated offense if all acts of execution are performed but the unlawful act does not occur due to causes independent of the actor’s will.
Section 12 provides that attempted access device fraud is punished with one half (1/2) of the fine and imprisonment provided for the consummated offenses if the actor commences directly by overt acts and fails to complete the execution due to cause or accident other than the actor’s spontaneous desistance.
Section 12 applies both rules to unlawful acts enumerated in Section 9.

Accessory liability and choice of prosecution

Section 13 makes a person an accessory to access device fraud if, with intent to gain for himself or for another, he buys, receives, possesses, keeps, acquires, conceals, sells, or disposes of, or deals in, any article or thing of value that he knows or should be known was acquired through counterfeit access devices, unauthorized access devices, or access devices fraudulently applied for.
Section 13 imposes accessory punishment as one-half (1/2) of the fine and imprisonment provided for the applicable consummated offense under Section 9.
Section 13 requires prosecution either under Republic Act No. 8484 or under the Anti-Fencing Law of 1979 (Presidential Decree No. 1612) whichever imposes the longer prison term as penalty for the consummated offense.

Prima facie intent to defraud

Section 14 provides that the mere possession, control, or custody of an access device without permission or lawful authority is prima facie evidence of intent to defraud.
Section 14 provides that possession, control, or custody of a counterfeit access device is prima facie evidence of intent to defraud.
Section 14 provides that possession, control, or custody of an access device fraudulently applied for is prima facie evidence of intent to defraud.
Section 14 provides that possession, control, or custody of device-making or altering equipment by a person whose business or employment does not lawfully deal with manufacture, issuance, or distribution is prima facie evidence of intent to defraud.
Section 14 provides that possessing an access device or medium on which an access device is written not in the ordinary course of the possessor’s trade or business is prima facie evidence of intent to defraud.
Section 14 provides that possession of a genuine access device not in the name of the possessor or not in the ordinary course of the possessor’s trade or business is prima facie evidence of intent to defraud.
Section 14 imposes a cardholder presumption of intent to defraud when a cardholder abandons or surreptitiously leaves the place of employment, business, or residence stated in the application without informing the credit card company of the actual place where the cardholder can be found, where at the time of abandonment the outstanding and unpaid balance is past due for at least ninety (90) days and is more than Ten thousand pesos (P10,000).

Loss notification and effect on liability

Section 15 requires an access device holder to notify the issuer of the details and circumstances of the loss upon knowledge of the loss.
Section 15 provides that full compliance absolves the access device holder of any financial liability from fraudulent use of the access device from the time the loss or theft is reported to the issuer.

Reporting and supervision responsibilities

Section 16 requires all companies engaged in issuing access devices, including banks, financing companies and other financial institutions, to furnish an annual report to the Credit Card Association of the Philippines.
Section 16 requires the annual report be furnished on or before the 31st of March of the succeeding year.
Section 16 requires reporting access device frauds committed against the holders of such entities in the preceding calendar year for consolidation and submission to the National Bureau of Investigation.
Section 16 maintains supervision: banks, financing companies and other financial institutions (including their subsidiaries and affiliates) issuing access devices remain regulated and supervised by the Bangko Sentral ng Pilipinas, while other issuing companies remain regulated and supervised by the Securities and Exchange Commission.

Relationship with other criminal laws

Section 17 provides that prosecution under Republic Act No. 8484 is without prejudice to liability for violation of provisions of the Revised Penal Code or any other law.

Separability, repeals, and effectivity

Section 18 provides that if any separable provision of Republic Act No. 8484 is declared unconstitutional, the remaining provisions remain in force.
Section 19 provides that any law, presidential decree or issuance, executive order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent with the provisions of Republic Act No. 8484 is repealed, modified, or amended accordingly.