1. What is the new cap on interest or finance charges on all credit card transactions under BSP Circular No. 1165 Series of 2023?
    Interest or finance charges on all credit card transactions shall not exceed an annual interest rate of thirty-six percent (36%) or a monthly interest rate of three percent (3.0%).
     
  2. Is there a change in the maximum monthly add-on rate for credit card installment loans?
    There is no change in the monthly add-on rate. The existing ceiling on the monthly add-on rate on installment loans is maintained at a maximum rate of one percent (1%).
     
  3. Is there a change in the maximum processing fee for credit card advances?
    There is no change in the maximum processing fee for credit card advances. The processing fee on the availment of credit card cash advances remains at a maximum of Php200 per availment.
     
  4. Is the change in the cap of interest and finance changes subject to the 90-day notice period to credit cardholders?
    No. Pursuant to Monetary Board Resolution No. 1185 dated 17 September 2020, banks do not need to notify their cardholders of the change in the interest or finance charges imposed on all credit card transactions. The said waiver applies to changes in the cap of interest and finance charges and the imposition of maximum processing fee.
     
  5. When shall the new cap on interest or finance charges take effect?
    The new cap on interest or finance charges shall take effect on February 10, 2023.