#Credit Card Transactions

The Bangko Sentral ng Pilipinas' Monetary Board has recently approved the 24% annual interest rate ceiling, or 2% monthly, on all credit card charges. Based on the circular 1098 of Bangko Sentral ng Pilipinas, interest rates or charges on a cardholder's unpaid credit card balance should not exceed 2% per month. It also covers credit card installment loans where credit card issuers can only charge monthly add-on rates up to 1%. However, no other charges shall be imposed on or collected on credit card cash advances except the maximum processing fee of PHP 200per transaction. “The interest rate cap on credit card receivables aims to ease the financial burden of consumers and micro, small and medium enterprises amid a difficult economic environment caused by the COVID-19 pandemic,” said Bangko Sentral ng Pilipinas Governor Benjamin Diokno. The order is pursuant to the BSP’s supervisory authority overall credit card issuers under the Credit Card Industry Regulation Law. It is also developed to promote responsible credit card lending in the Philippines. Yesterday, I announced the ceiling on interest or finance charges for credit card receivables, which should not exceed two percent per month. Read more in our articles including "Bangko Sentral ng Pilipinas puts ceiling on credit card charges" and "List of Bank, Credit Cards supported by Google Pay in the Philippines".