The Bangko Sentral ng Pilipinas (BSP) is taking a stand against slow refunds and unfair fees for failed PESONet and InstaPay transactions.
Starting in January 2025, Filipinos can expect much faster refunds. As outlined in the recently approved new guidelines (BSP Circular No. 1195), InstaPay (or instant retail payments) refunds must be credited back to their account within just one (1) hour.
While batch clearing payments such as PESONet, refunds must be cleared within two (2) hours.
This is a significant improvement over the current system, which can leave customers waiting for a frustrating two to three business days or more.
The BSP is also eliminating fees for failed transactions. This means that if a fund transfer doesn’t go through for any reason other than user error (like sending money to the wrong account), the financial institution will be required to return any fees they have charged.
Furthermore, to ensure clearer communication, the BSP is mandating stricter notification requirements for financial institutions. They must provide senders with updates on the status of their transfer and keep them informed until any issues are resolved. Receiving institutions must notify recipients when the funds have been successfully deposited into their account.
All banks and financial institutions will be required to adopt a “common language” for their notifications. This will make it easier for Filipinos to understand the status of their transfers and avoid any confusion.
Per the BSP Circular No. 1195 that was approved on May 30th, banks and other participants in the digital payment system have until January 1, 2025, to implement these changes.
