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Monday, March 4, 2024

BSP retains 3% interest ceiling on credit cards

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The Monetary Board of the Bangko Sentral ng Pilipinas said Tuesday it retained the existing ceilings on credit card transactions so that consumers will continue to have access to credit card financing.

This means the maximum interest rate or finance charge on unpaid outstanding credit card balance of a cardholder remains at 3 percent a month or 36 percent annually.

It said the monthly add-on rates that credit card issuers can charge on installment loans would be maintained at a maximum 1 percent.

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 said in a statement.

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