BSP Retains Cap on Credit Card Transactions at 3% per Monthby Fintech News Philippines August 22, 2023
The Bangko Sentral ng Pilipinas (BSP) will be retaining the cap on credit card transactions at 3% per month or 36% per year.
The maximum add-on rate on installment loans will also stay at 1% per month. Meanwhile, the maximum processing fee for cash advances will remain at PHP200 per transaction. These limits will be reviewed after 6 months.
BSP said that it will continue to promote digitalisation in the financial industry. This will help banks and credit card issuers improve their services and customer experience, while also reducing their operating costs.
The regulator will also continue to promote financial literacy, including the responsible use of credit cards.
BSP Governor Eli M. Remolona, Jr. said,
“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.”