Guidelines for the Issuance of New Postal Money Order (PMO) Check

June 20, 2017

PHLPOST CIRCULAR NO. 41-17

 

Effective 01 July 2017, the Philippine Clearing House Corporation (PCHC) in its Memorandum Circular No. 3126 dated 06 June 2016 will no longer accept old format checks in its clearing operations. PCHC will only accept and process checks that comply with the new check design standard and specifications and the Check Image Clearing System (CICS) requirements. The CICS is an electronic payment system where the image and information on the check is digitally captured by the bank receiving the check for deposit (presenting bank) and presented electronically to the paying (drawee) bank.

Since the paper-based money order is subject to clearing, the old postal money shall be converted into a CICS-compliant check. The new Postal Money Order (PMO) Check design, sample attached, conforms to the requirements of the CICS and has been approved by the PCHC.

The features of the new PMO check are as follows:

1. Only one (1) denomination and not valid if in excess of P2,000.00;

2. Valid within ninety (90) days from date of issue;

3. With Authorization's and Waiver Statement;

4. Encashable at any post offices;

5. Acceptable for deposit only at any banks;

6. Replaceable in case of loss, mutilation and invalidity.

Relative thereto, the following procedures/guidelines shall be strictly observed in the issuance, payment and deposit of the PMO check:

A. Post Office

I. Issuance of Postal Money Order (PMO) Check

1. Require the remitter to present a valid ID and to accomplish the Know-Your-Customer (KYC) form for first time transaction only. DETACa

2. Observe the sequential issuance of PMO check.

3. Write legibly and ensure that the following information are clear and complete:

3.1 Date of the check

3.2 Name of payee

3.3 Amount payable in figures

3.4 Amount payable in Words

3.5 Signature of the Postmaster or authorized representative over printed name

3.6 Name of Issuing Office

4. Fill out completely and legibly the Remitter's Receipt with the following information:

4.1 Name of remitter;

4.2 Name of payee;

4.3 Money Order Business (MOB) Stamp;

4.4 Amount payable in figures;

4.5 Service Fee inclusive of VAT;

4.6 Total Amount to be paid by the remitter.

5. Acronym or abbreviation on payee's name shall not be allowed in the issuance of PMO check.

6. The PMO Check shall be issued electronically or manually (computerized, typewritten or handwritten).

7. Signature of issuing employee shall not overwrite the magnetic ink character recognition (MICR) line, a 34-digit numbers at the bottom of the PMO check.

8. Writing the centavo/s like "01/100" in the amount in words line is acceptable.

9. Write the word "ONLY" to indicate that there is no more portion or fraction that follows after the amount written thus preventing the fraudster from adding or altering information in the amount in words. aDSIHc

10. The use of pens with dark-colored ink such as blue or black is recommended and encouraged to prevent the risk of being altered/erased.

11. The use of pencil or erasable ink to fill out required information is strictly prohibited.

12. The use of MOB stamp and facsimile signature on PMO Check are strictly prohibited.

13. Readable MOB stamp shall be used for stamping the "PO/Date" in the Remitter's Receipt.

14. The use of a check-writer which affixes numbers in the amount in words shall not be accepted for clearing.

15. PMO check with alterations and erasures in any information shall not be eligible or acceptable for clearing.

16. An erroneously issued PMO check shall be cancelled and the service fee shall be paid by the issuing employee or the remitter whoever is at fault.

17. Ensure the proper handling and utilization of PMO Checks to avoid frequent cancellation.

II. Release of PMO Check to the Remitter

 The Postmaster or his/her duly authorized representative shall provide the following information to the remitter upon issuance of PMO check:

1. The PMO check shall be mailed via Registered or Domestic Express Mail Service.

2. Validity period of 90 days from date of issue of the PMO check;

3. Encashable/payable only at any post offices;

4. For deposit only at any banks;

5. Avoid stapling, crumpling, folding, pinning or binding the PMO checks.

6. If the PMO check is returned due to discrepancy, erasure or alteration, it shall be presented to the issuing Post Office for repayment. ETHIDa

III. Encashment and Deposit of PMO Check

1. PMO check shall be encashable/payable at any post offices.

2. Require the payee to present valid IDs and to accomplish the Know-Your-Customer (KYC) form for first time transaction only.

3. Examine the PMO Check if regularly issued and no erasure/alteration has been made before encashment/payment.

4. PMO check with alteration/erasure presented for encashment/payment shall not be paid but returned to the issuing post office for repayment.

5. PMO check repaid at issuing office due to alteration/erasure shall not be deposited to the bank but submitted to the AdFin Division-Area Office with supporting Schedule of Money Order Paid indicating therein the source of fund (Trust Fund or General/Corporate Fund) used in encashment/payment.

6. Old money orders that are regularly issued are still acceptable for encashment/payment at the paying post office and/or repayment at the issuing post office.

7. Old money orders that have been encashed/paid at the post office shall not be deposited to the bank but submitted to the AdFin Division-Area Office with supporting the Schedule of Money Order Paid indicating therein the source of fund (Trust Fund or General/Corporate Fund) used in encashment/payment.

8. Only PMO checks that have been encashed/paid at the post office without alteration/erasure shall be deposited to the bank.

9. PMO checks for deposit shall be stamped "FOR DEPOSIT-Trust Fund Account No. _____ or General/Corporate Fund Account No. _____" at the back of the check depending on the source of fund used to encash/pay the PMO check. cSEDTC

10. When encashed/paid PMO checks are not accepted for deposit, same shall be submitted to the AdFin Division-Area Office with supporting Schedule of Money Orders Paid indicating therein the source of fund (Trust Fund or General/Corporate Fund) used in encashment/payment.

B. Administrative and Finance (AdFin) Division-Area Office

1. AdFin Division shall record old money orders and PMO checks that are not accepted for deposit to the bank.

2. Forward the encashed/paid old money orders and PMO checks to the Chief, Postal Payment Delivery Division, Business Lines Department, Manila for appropriate action.

C. Postal Payment Delivery Division (PPDD)

I. Issuance of Replacement of Old Postal Money Order (PMO) Not Accepted for Deposit

1. PPDD shall issue a replacement for lost, mutilated and/or invalid PMO check.

2. A stale/invalid money order or PMO check shall no longer be revalidated but issued a replacement.

3. An old money order regularly issued prior to July 01, 2017 shall be replaced with a new PMO check.

II. Transfer of Fund

1. PPDD shall check, segregate and consolidate old money orders and PMO checks paid from General/Corporate Fund collections from those paid from of Trust Fund collections submitted by the Area Accounting Office.

2. Request for the transfer of funds from the Trust Fund Account to the General/Corporate Fund Account.

Postmasters and Accountable Forms Custodians are instructed to conduct inventories of unused money order (MO) blank forms as of June 30, 2017. The inventory report together with the unused MO blank forms shall be submitted to the Chief of ADFIN, Area Office, who in turn shall submit the same to the Manager, Logistics and Property Management Department for appropriate action. SDAaTC

All other circulars in conflict herewith are hereby superseded accordingly.

This Circular shall be effective on July 01, 2017.

(SGD.) JOEL L. OTARRA

Postmaster General & CEO

ATTACHMENT

New Postal Money Order Design