After reading Scope and Coverage of Republic Act No. 10870 or The Philippine Credit Card Industry Regulation Law, read also Disposition of Revenues from Gaming Tax on Offshore Gaming Licensees
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It is the policy of the State to foster the development of the credit card industry as in indispensable tool in making consumer credit readily available to all Filipinos
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Credit card refers to any card or other credit device intended for the purpose of obtaining money, property, or services on credit
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Credit card issuer refers to a bank or a corporation that offers the use of its credit card
Under Republic Act No. 10870 or the Philippine Credit Card Industry Regulation Law, it is the policy of the State to foster the development of the credit card industry as an indispensable tool in making consumer credit readily available to all Filipinos under the conditions of fair and sound consumer credit practices which are aligned with global best practices, in promoting an efficient payments system and encouraging competition and transparency that support a more effective delivery of credit card services.
The Philippine Credit Card Industry Regulation Law governs all credit card issuers, acquirers and all credit card transactions.
What is a credit card?
The law says:
Credit card refers to any card or other credit device intended for the purpose of obtaining money, property, or services on credit. The credit cards are issued by a bank or a corporation that offers the use of its credit card. Such bank or corporation is called credit card issuer.
The issuance of a credit card gives birth to three (3) distinct contracts.
The Supreme Court said:
In a case decided by the Supreme Court, it states that every credit card transaction involves three contracts, namely: (a) the sales contract between the credit card holder and the merchant or the business establishment which accepted the credit card; (b) the loan agreement between the credit card issuer and the credit card holder; and lastly, (c) the promise to pay between the credit card issuer and the merchant or business establishment.
What are the minimum requirements for the governance and risk management system for credit card operations of banks? A related article will be posted in a few days.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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