THE Cebu City Council passed the ePayment Ordinance on Nov. 25, 2025, authorizing the City Government to accept taxes, fees and fines via digital platforms. This legislation modernizes local collections by incorporating bank-based systems and e-wallets to reduce face-to-face transactions while maintaining physical payment options for those who prefer cash or checks.
The big question
How will the transition to a cashless system impact the efficiency and security of public transactions for the average taxpayer?
Scope of digital payments
The ordinance covers a wide range of financial obligations to the City. Residents and business owners can digitally settle business-related fees, permits, licenses, regulatory charges, building clearances and traffic violation fines. The system aims to provide constituents with round-the-clock access to government payment channels, eliminating the need to visit a counter booth or collection outlet during office hours.
Costs and convenience fees
While the service offers speed, users will bear the cost of convenience fees rather than the City. Representatives from GCash, one of the anticipated payment channels, indicated that fees would likely be P10 for pay QR and pay online transactions, and P15 for pay bills. These charges are paid directly to the service providers, not to the government.
Validity and security of e-receipts
Digital receipts generated by these platforms carry the same legal weight as traditional printed receipts. City Treasurer Emma Villarete confirmed that under Commission on Audit rules, electronic receipts are recognized as official proof of payment. The ordinance mandates that the chosen electronic collection system must provide end-to-end encryption and real-time processing to safeguard against fraudulent activities.
Protocols for errors and refunds
The legislation includes specific protocols for failed transactions and overpayments.
Failed transactions: Providers must have automated procedures to detect failures, notify the client immediately, and trigger a retry mechanism.
Overpayments: If a user pays too much, the City Treasurer’s Office prefers issuing a tax credit for future liabilities rather than processing a direct refund, which is considered a tedious process.
Implications
The shift to digital payments is expected to streamline operations at City Hall by significantly reducing queues. For the City Government, it minimizes the risks associated with handling large amounts of cash and strengthens transparency in collections. By aligning with national frameworks like the Electronic Commerce Act of 2000 and the Anti-Red Tape Act of 2007, Cebu City moves toward a more modernized, efficient bureaucracy.
“We modernize government transactions, strengthen transparency, and provide consumers with reliable and convenient options for payment,” said Labella. / EHP