Free Bank Transfer Fees? Here’s What You Need to Know about the BSP Memo

Probably a few days ago, you noticed something different: from the news on social media platforms or upon checking your own bank account as you try to send money via InstaPay — suddenly, the majority of Philippine banks have waived the transfer fee.

Truly, it is somewhat driving people’s curiosity, as it has lingered for several years. In most cases, Filipino business owners and even normal citizens have been absorbing transfer fees ranging from ₱10 to ₱50. But today, the Bangko Sentral ng Pilipinas (BSP) has recently put an end to it.

Here’s how it was done.

The Regulatory Story: Why the BSP has Stepped In

The BSP has released Memorandum 2026-025, dated June 17, 2026, in which the Monetary Board lifted a moratorium on changes to transaction fees via InstaPay or PESONet that had been placed since 2021. Although the moratorium was lifted, that does not mean banks can just increase their transfer fees; rather, they are required to follow stricter rules in practice.

Furthermore, the sole basis of Memorandum 2026–025 is the BSP Circular 1238-2026, which is an amendment to the National Retail Payment System Framework. The amendment requires that small merchants not be charged for accepting digital payments, making it more economically viable for businesses to adopt cashless transactions. In addition, the circular mandates that transfers sent to another banking institution should not be charged higher fees than those for transfers within the same bank, with the only allowable fees being the actual “switch cost” incurred by the institution itself.

Hence, in plain terms, the BSP is not just allowing banks to freely raise fees — they are required to justify every fee they ask consumers to pay, with actual cost data, and must eliminate fees entirely for small merchant transactions.

What Circular No. 1238 Actually Requires

For business owners who want the financial details, here’s what you need to take note of:

Cost-Based Pricing: All digital transaction fees shall reflect the actual processing costs and must be lower than over-the-counter fees, ensuring that recipients receive the full amount sent to them without deductions.

Zero Fees for Small Merchants: For businesses classified as small merchants can now receive digital payments without the burden of processing fees.
Interbank Fees in accordance with Real Switch Costs: It has been estimated that the actual cost of routing a transaction to another financial institution is approximately ₱1.50, making it difficult for banks to justify the usual transfer fees.

Changes in Numbers are in Effect

Since Circular 1238 officially took effect on July 4, 2026, banks have moved quickly. Indeed, it isn’t just a policy on paper; it delivers tangible results for anyone who manages their finances.

BPI permanently removed InstaPay and PESONet transfer fees starting July 1, 2026.
RCBC made InstaPay transfers free starting July 4, 2026, with a cap of 30 free transfers per month for individual clients before a P10 fee applies.
As of July 9, 2026, BDO Unibank announced that interbank transfers via InstaPay and PESONet would be completely free.
GCash and Maya lowered their InstaPay transfer fees from P15 to P10, effective July 4 and July 6, respectively.

BSP Governor Eli Remolona has stated that they expect more banks to follow as the enforcement continues. In the event of non-compliance at such a financial institution, the institution will face standard enforcement protocols that begin with a formal warning.

As of July 15, 2026, here is the list of transfer fees among financial institutions as per BSP.

Why This Matters

If you run an MSME business, engage in freelance practice, or are simply a consumer — those bank transfer fees are truly part of a costly recurring expense. Imagine that, just by multiplying ₱10 to ₱50 per transaction across numerous payments or disbursements, the amount can be material. Without a doubt, these can result in

Lower Transaction Overhead

Simpler Collections from Customers

Planning better cash flows

Moreover, the rationale behind lowering fees to actualized switching costs is that digital payments are commonly considered a side service for banks rather than their primary revenue segment. Thus, financial institutions can absorb the cost through their main products or services, such as through deposits, loans, cards, and investments. As a result, major banks have been able to waive the transfer fees

Review Your Banking Setup Today

The BSP’s move regarding bank transfer fees continues to unfold, with more banks expected to adjust their fees in the upcoming weeks.

With these developments, it is crucial to take the necessary steps for your finances and take advantage of the savings now. We recommend that you check your Bank’s Current Fees, review your Merchant Classification, and update your Cash Flow projections.

Truly, navigating regulatory changes like this is exactly where you probably need the right advisory that makes a difference. If you want or need help in reviewing how the new BSP ruling affects your cash flow in business — we are here to guide you through it. Just send us a message or take our offer of a free consultation to stay ahead in the business landscape.

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