What fees can a credit card issuer legally charge?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
A card issuer may charge an annual/membership fee, a late-payment fee, an over-limit fee, a cash-advance fee, and foreign-currency conversion charges — but RA 10870 §11 requires every one of these to be disclosed to you in writing before they apply. The BSP caps only some of them: the finance charge on the unpaid balance may not exceed 3% per month, installment plans a 1% monthly add-on, and a cash-advance processing fee ₱200 per transaction (BSP Circular 1165, 2023). A fee that was never disclosed, or that exceeds a BSP ceiling, is contestable.
Primary sources
Frequently asked
Which credit-card fees does the BSP cap?
The BSP caps the finance charge on the unpaid balance (3%/month), the installment add-on rate (1%/month), and the cash-advance processing fee (₱200/transaction) under Circular 1165 (2023). Other fees such as annual and late fees are not price-capped but must still be disclosed under RA 10870 §11.
Can they charge a fee I was never told about?
No. RA 10870 §11 requires the issuer to disclose default and late-payment fees and other charges before they apply. A charge you were never disclosed can be disputed in writing and escalated to the BSP.
Was I overcharged on a foreign purchase?
RA 10870 §11 requires the issuer to disclose the procedure it uses to convert foreign-currency transactions. Request that disclosure and compare it to the rate applied; dispute the difference if it does not match.
Take action
Got a similar problem?
File a complaint and we'll pre-fill BSP, SEC, DTI, and small-claims letters for you.
Your rights as a credit-card holder — the BSP interest-rate cap, how interest and fees are computed, the minimum-payment trap, raising rates, cancelling a card, collection harassment, credit reporting (CIC), and why unpaid card debt is civil, not criminal (you cannot be jailed for it).