The Philippines’ banking sector is made up of various financial institutions, including universal and commercial banks, thrift banks, rural banks, digital banks, and electronic money issuers, each with varying transfer fees.
These institutions serve as the backbone of the country’s financial ecosystem, enabling individuals and businesses to transfer funds efficiently across different entities.
Under the supervision of the Bangko Sentral ng Pilipinas (BSP), these financial institutions ensure regulatory compliance and financial stability. As of the latest disclosures from BSP Supervised Financial Institutions (BSFIs) on 31 January 2025, the Philippines has approximately 35 commercial and universal banks, 14 thrift banks, 16 rural banks, 5 digital banks, and 13 electronic money issuers operating nationwide.
Each of these institutions plays a vital role in supporting the country’s economic growth, providing essential financial services that cater to different sectors, from large corporations to small businesses and individuals in rural areas.
Understanding PESONet and InstaPay
To streamline digital transactions, BSP oversees electronic fund transfer services, with two primary platforms: PESONet and InstaPay.
PESONet and InstaPay have both been designated as Prominently Important Payment Systems (PIPS) by the BSP under the National Payment Systems Act (NPSA). This designation subjects them to closer supervision to ensure compliance with international standards, ensuring their safety, efficiency, and reliability for the public.
PESONet
The Philippine EFT System and Operations Network (PESONet) was launched on 08 November 2017 as the first Automated Clearing House (ACH) under the National Retail Payment System (NRPS).
It is a batch electronic fund transfer (EFT) credit payment scheme that serves as an electronic alternative to paper-based checks.
Payments made through PESONet are processed in bulk at scheduled batch intervals, allowing the recipient to receive the full amount within the same banking day if the payment instruction is sent before the cut-off time.
PESONet is widely used for business-to-business (B2B) and person-to-business (P2B) payments. It also facilitates business-to-person (B2P) transactions, such as salary credits to employee accounts, and enables digitised government-to-government (G2G) and person-to-government (P2G) transactions.
Furthermore, PESONet provides smaller financial institutions, such as thrift and rural banks, with better participation in the country’s retail payment system.
The Philippine Clearing House Corporation (PCHC) was designated as the clearing switch operator for PESONet during a two-year transitory period from its launch.
InstaPay
Launched on 23 April 2018, InstaPay is a real-time, low-value EFT credit push payment scheme designed for fast and convenient retail payments. It allows users to transfer amounts of up to PHP 50,000 instantly, making it ideal for transactions such as purchasing goods, paying toll fees, buying tickets, and conducting e-commerce transactions.
Unlike traditional card-based point-of-sale (POS) systems, payment solutions built on InstaPay enable merchants to accept electronic payments from bank and e-money accounts without requiring specialised POS devices.
For micro, small, and medium enterprises (MSMEs), this system not only enhances convenience and affordability but also helps build a digital transaction history, which can improve creditworthiness and provide better access to financial services.
BancNet was designated as the clearing switch operator for InstaPay for a two-year transitory period from its launch.
Comparing Transfer Fees Across Banks
While these digital payment systems offer efficiency and convenience, banking and financial institutions impose varying fees for transactions. Below is a comprehensive comparison of transfer fees across different banking categories in the Philippines.
Last Updated: 04 March 2025
Universal and Commercial Banks
As the largest financial institutions in the country, universal and commercial banks offer a broad range of financial services, including corporate banking, investment banking, and retail banking.
Universal banks can also function as investment houses, offering underwriting services and investing in non-allied undertakings. They have the authority to own up to 100% of the equity in a thrift bank, rural bank, financial allied enterprise, or non-financial allied enterprise.
Publicly listed universal banks can also own up to 100% of the voting stock of one other universal or commercial bank.
To help you understand which universal and commercial banking institutions in the Philippines have the lowest and highest transfer fees, we have set up this infographic.
Among these banks, CIMB Bank Philippines and Union Bank of the Philippines emerged as the most economical choices, as they provide free PESONet and InstaPay transfers.
On the other end of the spectrum, Cathay United Bank Co., Ltd. applies some of the highest charges, with PESONet transactions costing as much as PHP 200.00.
Similarly, MUFG Bank and Mizuho Bank levy substantial fees, reaching PHP 250.00 for corporate PESONet transfers.
Thrift Banks
Thrift banks primarily cater to small and medium-sized businesses (SMEs) and individual depositors, focusing on savings and loans.
They include savings and mortgage banks, private development banks, and stock savings and loan associations. Their main customers are businesses engaged in agriculture, services, industry, and housing, as well as individuals and SMEs.
They provide short-term working capital and medium- to long-term financing. Below is the list of the rates of transfer fees for thrift banks in the Philippines.
*Receiver only
City Saving Bank stands out among thrift banks for its affordability, offering free PESONet transfers and a minimal PHP 10.00 charge for InstaPay. Another appealing choice is BPI Direct BanKo, which provides free corporate InstaPay transactions.
In contrast, First Consolidated Bank, Inc. applies the highest transfer fees in the Philippines, with PESONet transactions costing up to PHP 600.00.
Rural Banks
Rural banks serve rural and agricultural communities, providing essential financial services to small businesses and individuals. Their primary goal is to promote and expand the local economy in an orderly and effective manner.
They play a crucial role in supporting farmers through different stages of production, from acquiring seedlings to marketing their produce. For those interested, we have listed the differences in transfer rates here.
*Receiver only
For Rural Banks, Own Bank and Top Bank Philippines offer the most budget-friendly transfer options among rural banks, providing free transactions across all transfer types. Another competitive choice is SeaBank Philippines, which maintains affordable fees ranging from PHP 0 to 15.00.
To compare, Camalig Bank, Inc. imposes the highest PESONet fees, with transfer costs reaching up to PHP 500.00.
Digital Banks
Digital banks operate entirely online without physical branches, offering convenient and low-cost financial services. They provide financial products and services exclusively through digital platforms and electronic channels.
While they are not allowed to have physical branches, sub-branches, or branch-lite units, they are required to maintain a head office in the Philippines. Compare the transfer fees rates for digital banking institutions in the Philippines below.
Among digital banks, Tonik Digital Bank, Union Digital Bank, and UNO Bank offer the most cost-effective transfers, providing free transactions across both PESONet and InstaPay for individual and corporate users. GoTyme Bank Corporation also offers competitive rates, with InstaPay transactions ranging from free to PHP 8.00.
On the other hand, Maya Bank has the highest InstaPay fee among digital banks, charging PHP 15.00 for individual transactions. However, it remains a strong option due to its free PESONet transfers for both individual and corporate users.
Electronic Money Issuers (NBFI)
Non-bank financial institutions (NBFIs) that issue electronic money (also known as electronic money issuers-EMI) and facilitate digital transactions.
The BSP classifies e-money issuers into three categories: EMI-Bank for banks with EMI licenses, EMI-NBFI for BSP-supervised nonbank financial firms, and EMI-Others for nonbanks registered as monetary transfer agents. Below is the list of transfer fees for NBFIs in the Philippines that issue electronic money.
Among electronic money issuers, DCPay Philippines, Inc. offers the most cost-effective option with free individual InstaPay transfers and a PHP 10.00 fee for corporate transactions. Banana Fintech Services Corporation also provides some of the lowest fees, with rates ranging from PHP 0.00 to 10.00 for corporate transactions.
On the higher end, Traxion Pay, Inc. charges PHP 50.00 for both individual and corporate InstaPay transfers, making it one of the most expensive options. USSC Money Services, Inc. also has a broad fee range, charging up to PHP 75.00 for certain transactions, which makes it one of the costlier choices depending on the transfer amount.
Practical Tips for Users
When sending money, it is essential to choose a bank or digital wallet that offers free or low-cost transfers. Some financial institutions provide free transactions via InstaPay or PESONet, making them a cost-effective choice for frequent users.
Additionally, checking whether the recipient has an account with the same bank can help reduce transfer fees. In many cases, intrabank transfers are either free or significantly cheaper compared to interbank transactions.
For larger transactions, it is advisable to plan ahead. Since PESONet processes transfer in batches, scheduling payments early in the day ensures timely fund transfers and avoids unnecessary delays.
Leveraging digital banks and e-wallets can also be a smart financial decision, as many of these institutions provide free transfer services. These platforms offer convenience and accessibility, making them an excellent alternative to traditional banking.
Lastly, staying informed about the latest BSP regulations on digital payments is crucial. The BSP frequently updates policies that may affect transaction fees and limits. Hence, keeping track of these changes can help users make informed financial decisions.
Future Outlook on The Banking Transfer Fees in the Philippines
Transfer fees vary widely across banking and financial institutions in the Philippines. Universal and commercial banks generally charge higher fees, while digital banks and electronic money issuers offer lower or free transfers.
Consumers and businesses must consider these fees when selecting a financial institution. It is also advisable that we also take note of the balancing cost, convenience, and the range of services offered.
Looking ahead, BSP continues to push for financial inclusion through digitalisation. The goal of reaching 50% digital payments in the country is on track. Plus, with further advancements, transfer fees may become more competitive.
However, banks and financial institutions must also balance operational costs and security risks associated with online transactions. While digital banking offers convenience, users should remain cautious of cyber threats and fraudulent activities.
Frequently Asked Questions (FAQs)
1. What is the difference between PESONet and InstaPay?
PESONet is a batch-processing payment system ideal for larger transactions. InstaPay on the other hand, processes transfers instantly but is limited to PHP 50,000 per transaction.
2. Which banks offer free InstaPay or PESONet transfers?
Some digital banks and financial institutions offer free transfers. Users should check their bank’s latest policies as fees are subject to change.
3. Are there limits on PESONet and InstaPay transactions?
Yes. InstaPay has a transaction limit of PHP 50,000 per transfer, while PESONet transactions are subject to individual bank policies.
4. How can I avoid paying high transfer fees?
You can reduce costs by using banks that offer free transfers, making intrabank transfers, or taking advantage of digital banks and e-wallet services.
5. Are digital banks safe for fund transfers?
Yes. Digital banks are regulated by BSP and must comply with financial security protocols. However, users should always enable two-factor authentication and stay alert for phishing scams.
6. Will BSP regulate transfer fees in the future?
BSP continues to evaluate and regulate banking transfer fees in the Philippines to promote affordability and accessibility. While transfer fees vary, future policies may encourage banks to offer lower fees or free transfers.
The increasing adoption of digital banking and e-wallets is expected to drive more competitive pricing in the future. It is expected that these will benefit users with lower fees and enhanced financial accessibility.
Important Notes on Transfer Fees
This article is based on the Latest Disclosures of BSP Supervised Financial Institutions (BSFIs) as of 31 January 2025. Do note that:
- This list does not include PESONet over-the-counter (OTC) fees.
- Transaction amount determines the fee tier.
- For the Bank of the Philippine Islands, InstaPay transfers via VYBE will be free from April 2024 – January 2025. A PHP 25.00 fee will apply thereafter.
- For BDO Unibank, Inc., InstaPay fees for BDO Pay and BDO Online are PHP 10.00, while BDO Digital Banking and BDO Personal Online Banking remain at PHP 25.00.
- CIMB Bank Philippines, Inc. limits FREE InstaPay transfers to five per day. The bank automatically redirects any additional transfers to PESONet.
- Retail Internet Banking (RIB) 2.0 does not currently support PESONet transactions.
- For the Land Bank of the Philippines, the first three transactions worth PHP 1,000 and below per day are free when using the mobile banking app and iAccess.
- For Metropolitan Bank and Trust Company, transactions worth PHP 1,000 and below in MBO & MBOA are free until April 2025.
- For Security Bank Corporation, fees for non-individual accounts transacting via DigiBanker are temporarily waived until further notice. Clients using proprietary front-end systems or API-based services are exempt from this promo.
- For Union Bank of the Philippines, transactions worth PHP 500 and below are free from April 24, 2024, to March 31, 2025. Corporate InstaPay fees will range from PHP 0.00 – 25.00 starting March 15, 2025.
- For SeaBank Philippines, Inc. (A Rural Bank), the first 15 sending transactions per week (PESONet and InstaPay combined) are free. A PHP 15.00 fee applies to each subsequent transaction, resetting every Monday.
- For GoTyme Bank, a maximum of three transfers per week are free, with a PHP 8.00 fee per transaction applied thereafter. The limit resets every Monday.
- For Union Digital Bank, InstaPay fund transfer transactions are free until June 31, 2025, after which a PHP 10 fee will apply.
Featured image credit: Edited from Freepik
