BSP keeps ceilings on credit card transactions
MANILA, Philippines — The Bangko Sentral ng Pilipinas has kept existing cap on credit card charges to encourage consumers to borrow money from banks and spur spending in the consumption-reliant Philippine economy.
This means the maximum interest rate or finance charge on the unpaid outstanding credit card balance of a cardholder remains at 3% per month or 36% per year.
Similarly, the monthly add-on rates that credit card issuers can charge on installment loans is maintained at a maximum rate of 1%.
Meanwhile, the maximum processing fee on the availment of credit card cash advances stays at P200.00 per transaction.
The ceilings on credit card transactions are subject to review following a six-month period.
“The BSP’s decision to maintain the current ceilings on credit card transactions strikes a balance between providing consumers with access to credit card financing at steady rates and ensuring long-term viability of banks/credit card issuers so that they can continue to provide quality service to their clients,” BSP Governor Eli Remolona Jr. said.
Credit card receivables posted double-digit growth of 29.0% year-on-year as of end-May 2023, higher than the 17.1% registered a year ago, BSP data showed.
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