Late Payment Fees by Bank in the Philippines

Missing a credit card payment can be expensive. Most banks in the Philippines charge a late payment fee when you fail to pay at least the minimum amount due on or before your payment due date. Depending on the bank and your card type, the fee can range from a fixed peso amount to a percentage of the unpaid balance.

In this guide, we’ll explain what late payment fees are, how banks calculate them, the late payment fees charged by major Philippine banks, and what you can do to avoid paying unnecessary penalties.

What Is a Late Payment Fee?

A late payment fee is a penalty charged by a bank when a credit cardholder fails to make the required payment by the due date.

Banks generally require cardholders to pay at least the minimum amount due every month. If you miss this payment or pay after the due date, the bank may charge a late payment fee in addition to finance charges or interest.

For example, if your credit card statement shows a minimum amount due of PHP 1,000 and you fail to pay it before the due date, your bank may impose a late payment fee during the next billing cycle.

Late Payment Fee vs Credit Card Interest Rate

One of the most common misconceptions among credit card users is that a late payment fee and a credit card interest charge are the same thing. They are actually two different charges that can be applied simultaneously.

A late payment fee is a penalty charged when you fail to pay at least the minimum amount due by the payment deadline. It is usually a fixed peso amount or a percentage based on your unpaid minimum payment.

A credit card interest charge (also called a finance charge) is the cost of borrowing money from the bank. Interest is calculated on your outstanding balance when you do not pay your statement balance in full.

In other words, a late payment fee penalizes you for missing the due date, while interest is the cost of carrying unpaid debt.

If you’re wondering how banks calculate credit card interest and how much you may be charged each month, check out our complete guide on credit card interest rates in the Philippines.

Why Do Banks Charge Late Payment Fees?

Late payment fees serve several purposes.

First, they encourage borrowers to make payments on time. Second, they help banks recover costs associated with managing delinquent accounts. Finally, they compensate lenders for the increased risk of delayed repayment.

While late payment fees can seem frustrating, they are disclosed in the credit card’s terms and conditions and are regulated by the Bangko Sentral ng Pilipinas (BSP).

Credit Card Late Payment Fees by Bank

The table below provides an overview of the late payment fees commonly charged by major banks in the Philippines. Banks may revise these fees periodically, so it’s always best to verify the latest schedule of fees directly with your card issuer.

Bank	Typical Late Payment Fee
BDO	PHP 850 or unpaid minimum amount due, whichever is lower
BPI	PHP 850 or unpaid minimum amount due, whichever is lower
Metrobank	PHP 1,000 or unpaid minimum amount due, whichever is lower
RCBC	PHP 1,000 or unpaid minimum amount due, whichever is lower
Security Bank	PHP 1,000 or unpaid minimum amount due, whichever is lower
EastWest	PHP 1,500 or unpaid minimum amount due, whichever is lower
UnionBank	PHP 1,500 or unpaid minimum amount due, whichever is lower
PNB	PHP 1,000 or unpaid minimum amount due, whichever is lower
Chinabank	PHP 750 – 1,000 or unpaid minimum amount due, whichever is lower
HSBC Philippines	PHP 1,500 or unpaid minimum amount due, whichever is lower
Maybank	PHP 850 or unpaid minimum amount due, whichever is lower
Maya	PHP 1,500 or unpaid minimum amount due, whichever is lower
Atome	5% of the outstanding balance

Note: Premium cards may have different fee schedules.

How Are Late Payment Fees Calculated?

Many cardholders assume banks automatically charge a fixed amount whenever a payment is late. However, several banks use a formula that compares a fixed fee against the unpaid minimum amount due.

Let’s look at an example.

Suppose your statement shows:

• Total Outstanding Balance: PHP 15,000
• Minimum Amount Due: PHP 500
• Due Date: June 15

If your bank charges “PHP 850 or unpaid minimum amount due, whichever is lower,” your late payment fee would be PHP 500.

If your minimum amount due was PHP 1,500, the fee would be PHP 850.

Because each bank has its own fee structure, reviewing your card’s terms and conditions is important.

Can You Be Charged Both a Late Payment Fee and Interest?

Yes. In many cases, missing a payment can trigger both a late payment fee and interest charges.

Let’s look at a simple example.

Suppose you have a credit card balance of PHP 20,000 and a minimum amount due of PHP 1,000. If you fail to make the payment by the due date, the bank may:

• Charge a late payment fee based on its fee schedule.
• Continue charging interest on the unpaid balance.
• Include both charges in your next statement.

This means the cost of a missed payment can be significantly higher than the late payment fee alone.

For this reason, many financial experts recommend paying at least the minimum amount due on time, even if you’re unable to pay the full statement balance.

What Happens If You Miss Multiple Payments?

A single missed payment may result in a late payment fee, but repeatedly missing payments can have more serious consequences.

Potential effects include:

• Additional late payment fees.
• Accumulating finance charges.
• Reduced credit score.
• Suspension of card privileges.
• Lower chances of approval for future loans or credit cards.
• Collection efforts by the bank.

The longer an account remains unpaid, the more difficult and expensive it becomes to settle.

Can Banks Waive Late Payment Fees?

Yes, some banks may waive late payment fees under certain circumstances.

Fee waivers are generally considered on a case-by-case basis and may depend on factors such as:

• Your payment history.
• How long you’ve been a customer.
• Whether it is your first missed payment.
• The reason for the delay.

For example, a customer with several years of good payment behavior may have a better chance of receiving a one-time fee reversal than someone with repeated late payments.

If you believe the fee was charged unfairly or due to exceptional circumstances, contact your bank as soon as possible.

How to Avoid Late Payment Fees

The easiest way to avoid late payment fees is to pay at least the minimum amount due before the deadline.

Many cardholders find it helpful to use payment reminders and automatic payment arrangements.

Consider the following practices:

• Set calendar reminders several days before your due date.
• Enroll in automatic payments when available.
• Monitor your statement balance regularly.
• Keep your contact information updated so you receive billing notifications.
• Pay more than the minimum amount due whenever possible.

These habits not only help you avoid fees but can also reduce interest charges and improve your credit standing.

Are Late Payment Fees Worth Worrying About?

Yes. While a single late payment fee may seem manageable, the combination of penalties and finance charges can significantly increase your credit card costs over time.

For example, a missed payment could result in:

1. A late payment fee.
2. Finance charges on the unpaid balance.
3. Negative effects on your credit history.

Making payments on time remains one of the most important habits for responsible credit card use.

Related Credit Card Fees You Should Know About

Late payment fees are only one of several charges that may appear on your credit card statement. Understanding these fees can help you avoid unnecessary costs and choose the right card for your needs.

Some of the most common credit card charges include:

Credit Card Interest Rates

Interest charges apply when you carry an unpaid balance from one billing cycle to the next. Unlike late payment fees, interest is calculated based on the amount you owe and how long the balance remains unpaid.

Read next: Credit Card Interest Rates in the Philippines

Credit Card Annual Fees

Many credit cards charge an annual membership fee for maintaining the account. Some cards waive this fee permanently, while others offer waivers if you meet certain spending requirements.

Read next: Credit Card Annual Fees by Bank

Minimum Amount Due

The minimum amount due is the smallest payment required to keep your account current. While paying only the minimum can help you avoid late payment fees, it may result in substantial interest charges over time.

Read next: Minimum Amount Due vs Total Amount Due

Credit Card Grace Period

A grace period is the time between your statement date and payment due date. Understanding how grace periods work can help you avoid paying interest altogether.

Read next: What Is a Credit Card Grace Period?

Frequently Asked Questions

What happens if I pay one day late?

Many banks may still impose a late payment fee if payment is received after the due date. Processing times can also affect whether a payment is considered late.

Can I pay only the minimum amount due?

Yes. Paying at least the minimum amount due generally helps you avoid late payment fees. However, the remaining balance may continue to accrue interest.

Will a late payment affect my credit score?

Repeated late payments can negatively affect your credit profile and may influence future loan or credit card applications.

Can I request a late payment fee reversal?

Some banks may grant a one-time reversal, especially if you have a strong payment history and the missed payment was accidental.

Final Thoughts

Late payment fees are one of the most common charges imposed on credit card accounts in the Philippines. While the exact amount varies by bank, most issuers charge around PHP 700 to PHP 1,000 or use a formula based on the unpaid minimum amount due.

The best way to avoid these charges is simple: pay at least the minimum amount due before the deadline. If you accidentally miss a payment, contact your bank immediately, as some institutions may consider waiving the fee for customers with a good payment record.

Understanding your bank’s late payment fee policy can help you avoid unnecessary costs and maintain a healthy financial standing.

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