Why is the convenience fee for these LTO transactions so high?

Vehicle Registration Extension Facilities explain the extra fees involved in registration

A few weeks ago, a photo showing a “GCash-only” payment setup at a Private Motor Vehicle Inspection Center (PMVIC) went viral on social media. While most netizens had no problem with digital payments, especially nowadays, many took issue with the additional PHP 65.00 convenience fee charged on top of the inspection cost.

More recently, another photo showing the same issue made the rounds online, this time involving BPI and UnionBank as well, all charging the same PHP 65.00 convenience fee alongside GCash.

VREFs are not allowed to collect cash

To set the record straight, AutoIndustriya.com reached out to the Vehicle Inspection Center Operators Association of the Philippines (VICOAP) to get their side and understand exactly where these fees are coming from.

According to VICOAP, the photos that went viral were taken from a Vehicle Registration Extension Facilitiy (VREF). These VREFs were set up beside or near Private Motor Vehicle Inspection Centers (PMVICs) to make life easier for motorists who want to get their inspection and registration renewal done in one place, without having to visit an LTO District or Extension Office. Think of it as the vehicle-registration counterpart of the Driver’s License Renewal Office (DLRO), with many branches conveniently located inside malls.

Using a VREF is optional, and motorists are free to renew at a VREF, an LTO office, or even online via LTMS.

However, under the Department of Transportation (DOTr) and Land Transportation Office (LTO) policy, VREFs are not permitted to accept cash payments. Only government-bonded cashiers are authorized to handle cash for government services and issue official receipts, including those for vehicle registration renewal. In other words, their hands are tied to online payment only options to make these services convenient to motorists. And, like most online payment channels, these also come with convenience fees set by the service provider.

Again, the group stressed that using VREFs is entirely optional. Motorists can always go to an LTO District or Extension Office to pay in cash and avoid any convenience fees.