Money

BSP sets 24% cap on credit card finance charges

Credit card companies can no longer impose extraordinary interest rates on credit card charges starting November 3.

The Bangko Sentral ng Pilipinas has set the interest rate ceiling for all credit card transactions at two percent per month or 24% per annum to help Filipinos weather the pandemic storm.

Cash advances will also be charged a maximum of two percent per month, with a P200 ceiling on cash advance transactions.

Credit card installments will also be limited to an add-on rate of one percent per month, the BSP said.

BSP Governor Benjamin Diokno said “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.”

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