The Bangko Sentral ng Pilipinas (BSP) has decided to retain the 3% monthly cap on finance charges for credit card loans, a measure aimed at protecting consumers.
However, the BSP has increased the monthly add-on rate ceiling for credit card instalment loans from 1% to 1.5% and raised the maximum one-time cash-advance processing fee from PHP200 ($4.20) to PHP300 ($6.30) per transaction.
These changes, outlined in BSP Circular No. 1242 issued on 10 November 2026, are designed to balance consumer protection with access to credit, whilst also providing credit card issuers with more flexibility as operating costs rise.
The BSP initially introduced these ceilings in 2020 and made partial adjustments in 2023.
The BSP regularly reviews credit card fee caps, considering economic conditions, the health of financial institutions, and alignment with its monetary policy. The new ceilings will apply only to transactions made after the Circular’s effective date, whilst existing credit card instalment loans will adhere to previously agreed terms.
All credit card fees and charges will continue to be subject to existing consumer protection, disclosure, and transparency requirements. The BSP’s decision reflects its ongoing commitment to safeguarding consumers whilst adapting to changing economic conditions.
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