What is the Minimum Amount Due on a Credit Card and How is It Calculated?

Are you a first-time credit cardholder? Then high up on your to-do list should be understanding the most common credit card terminologies universally used by banks.

There’s a lot of jargon to get through. You can start by taking to heart the most basic terms to help you stay on top of your finances. Case in point: At the end of every billing cycle, you’ll receive your credit card statement, which has two prominent figures, i.e., the total amount due and the minimum amount due on your credit card.

This article will delve deeper into what the latter is and how it is calculated. Keep reading to find out more!

What is the Minimum Amount Due on a Credit Card?

The minimum amount due (MAD) is a fixed feature across all credit card statements. If you’re managing multiple credit cards from various banks, you may also know it by its other name: minimum payment.

But what is the minimum amount due on a credit card statement? It’s essentially a fraction of the total outstanding amount that you as a cardholder must pay on or before the payment due date. 

How the Minimum Due Works on a Credit Card

This figure is a fixed percentage (typically 5%) of the total outstanding amount, and it’s calculated on the date that the statement of account is generated. The percentage can be higher depending on certain factors, like if you spend more than your credit limit or if you miss paying off your balance from the previous month’s billing cycle.

Credit card providers offer the minimum amount due feature as a contingency in case you’re unable to repay the total bill amount that you owe. The way it’s calculated ensures that you can still, even partially, repay your outstanding credit card balance every month.

Paying the minimum amount due is mandatory to avoid any additional late fee charges, ensure the integrity of your credit score, and remain in good standing with your credit card issuer. You can find the minimum amount due printed on your monthly billing statement or highlighted in your online banking app. You may also call your issuer to inquire about your total balance and minimum amount due.

Related: Say Goodbye to Late Payments with These Credit Card Payment Methods

How to Calculate the Minimum Amount Due Per Bank in the Philippines

There’s no one way to figure out what the minimum amount to pay for a credit card is. Banks have different ways of computing the minimum amount due for each card, and each bank’s formula is usually tucked away in its own terms and conditions. 

So when you start comparing credit cards, make sure to consider this question: how is the minimum amount due calculated on the credit card you’re eyeing? 

While there’s no standard minimum amount due for every bank, you can see a pattern forming once you start looking at each bank’s minimum amount due computation. Here’s a list of the top credit card providers in the Philippines and how they set the minimum amount due for their cards. 

📌 UnionBank MAD Computation

The UnionBank credit card minimum amount due has two separate computations depending on the type of credit card you have.^[1] The first one is applicable to the following credit cards:

• Rewards Credit Card
  
• Reserve Visa Infinite
• Reserve World Elite Mastercard
• Miles+ Visa Signature
• Miles+ World Mastercard
• Rewards Platinum Mastercard
• Cash Back Visa Platinum
• Cash Back Titanium Mastercard

If you have any of the UnionBank credit cards above, your minimum amount due will be ₱500 or the sum of the following, whichever is higher:

• Any past-due amount
• Billed monthly interest component of interest-bearing installment/s
• Billed interest charge
• Billed late payment charge
• Total amount due, which includes the monthly installment for that month if you have an existing installment plan, minus the first four items on this list, multiplied by the required payment percentage of 1%
• 1% of the unbilled principal of the installment transactions

If your UnionBank credit card is not on the list above, your minimum amount due will be ₱400 or the sum of the following, whichever is higher:

• Any past-due amount
• Any overlimit amount
• Billed monthly interest component of interest-bearing installment/s
• Total amount due (which includes the monthly installment for that month if you have an existing installment plan) minus the first three items above, multiplied by the required payment percentage of 4%

Whichever UnionBank credit card you have, if your total amount due and minimum amount due on your credit card are less than or equal to ₱400, you must pay that exact amount to ensure that your minimum amount due will not be greater than the total amount due. 

📌 Metrobank MAD Computation

The Metrobank credit card minimum amount due is pretty straightforward compared to other banks. If you have a peso account, the minimum amount due for a Metrobank credit card is ₱850 or 3% of the outstanding balance, whichever is higher. If you have a dollar account, your minimum due is US$20 or 3% of the outstanding balance, whichever is higher.^[2]

📌 HSBC MAD Computation

If your provider is HSBC, the way to calculate the minimum amount due of your credit card is to find the sum of the following; otherwise, your minimum payment due for your credit card is ₱500.^[3]

• 1% of the full current amount you owe (which includes retail purchase, cash advance, cash advance fees, and other fees/charges excluding annual fee, finance and late charge, overlimit fee)
• One-twelfth (1/12) of your annual fee, if applicable
• 100% of the monthly installment amount (principal and interest) overlimit fee, finance charge, and late charge
• Any past due amount or overlimit amount

📌 Security Bank MAD Computation

Getting the Security Bank credit card minimum amount due is fairly easy as well. This bank has also recently updated its formula.^[4] As of May 2023, your credit card minimum amount due is ₱500 or the sum of the following, whichever is higher:

• Interest for installment transactions, if applicable
• Transaction fees (e.g., cash advance fee, SimplyPay fee, quasi-cash fee) 
• Service fees (e.g., overlimit fee, account maintenance fee, ADA fee)
• Interest charge
• Late payment fee, if applicable
• Total amount due minus the first five items above multiplied by the required minimum pay percentage of 3%

📌 BPI MAD Computation

The minimum amount due on a BPI credit card requires some computation to get. Essentially, if your total outstanding balance is less than or equal to ₱850, your minimum amount due is equal to your outstanding balance.^[5] 

If it exceeds ₱850, you have to get 3.57% of the difference between the total outstanding balance and the sum of the new retail purchase, cash advance transaction, and adjustments posted during the statement month. The formula looks like the following.

Minimum amount due on a BPI credit card = (Total Outstanding Balance) - [(New Retail Purchase + Cash Advance Transaction + Adjustment Posted for the Month)] x 3.57%

📌 RCBC MAD Computation

RCBC also has a specific way on how to calculate the minimum amount due for its credit cards.^[6] It can either be ₱500 for peso accounts or US$15 for dollar cards or the amount computed using the following formula, whichever is higher.

Minimum amount due on an RCBC credit card = [(Total Statement Balance - Transactions Posted on the Current Statement - Amount Past Due - Current Late Charge) x 3%] + [(Amount Past Due + Current Late Charge + Current Over Limit Amount)]

The minimum payment due on the credit card will also be rounded down based on the type of credit card you have and the total amount of your monthly due. Below are the designations for each card type and the minimum amount due.

For Peso Credit Cards

For Dollar Credit Cards

📌 PNB MAD Computation

The PNB credit card minimum amount due was just updated in 2022  to make payments easier and allow for more flexible financing for all PNB cardholders.^[7] The good news is that if you own a PNB Ze-Lo Mastercard, your minimum amount due just got slightly lower. You now get 2.5% of your total amount due or ₱200, whichever is higher.

If you have the following PNB credit cards, the minimum amount due also got updated to 3% of the total amount due or ₱500 or US$50, whichever is higher. 

• Essentials Mastercard
• Platinum Mastercard
• Cart Mastercard
• Classic Visa
• Gold Visa
• Diamond UnionPay
• PAL Mabuhay Miles NOW Mastercard
• PAL Mabuhay Miles Platinum Mastercard
• PAL Mabuhay Miles World Mastercard (NOW, Platinum, and World)
• The Travel Club Platinum Mastercard and other co-branded credit cards
• Business Credit Card (Phase 2)

📌 AUB MAD Computation

AUB stands out from other banks when it comes to giving its cardholders control. Not only can you set your monthly due date and how often you pay in a given month, but you can also set the minimum amount due for your credit card if you own an AUB Easy Mastercard or an AUB Classic Mastercard. The amount will depend on the payment frequency you choose.^[8]

Note that a standard computation for the minimum amount due still applies, so you still have to get the sum of the following. If the actual MAD amount is higher than any of the minimum amount due options, then you have to pay for the sum of the following instead:

1. Installment transactions billed, if applicable
2. Fees and finance charges
3. A percentage of the total amount due minus items 1 and 2
4. Past total amount due, if applicable

If you own an AUB Gold Mastercard or an AUB Platinum Mastercard, your minimum amount due is ₱500 or the sum of the above, whichever is higher. 

📌 Bank of Commerce MAD Computation

As a bank that offers dual currency credit cards, Bank of Commerce also has a separate minimum payment percentage for each account. 

If you have a peso credit card, your minimum amount due is 5% of the total amount due or ₱500, whichever is higher. If you have a dollar credit card, your minimum amount due is 3% of the total amount due or US$50, whichever is higher.^[9]

📌 Robinsons Bank MAD Computation

Rounding off this list is Robinsons Bank and its small roster of capable credit cards.^[10] If you own a Robinsons Bank credit card, the minimum amount due for your credit card is either of the two, whichever is higher:

• The sum of the following:
  • 3% of the total statement balance
  • Membership fee, if applicable
  • Past due amount, if applicable

• The sum of the following:
  • Overlimit amount
  • Past due amount, if applicable

Final Thoughts

Using a credit card can be exciting and rewarding, but there might come a time when you won’t be able to keep up with your monthly payments. That’s completely fine—what’s important is how you bounce back from the setbacks, so you can keep enjoying the benefits of having a credit card. One way to cover your bases is to understand what the minimum amount due for your credit card is and how best to manage it.

While minimum amount dues exist as a safety net for cardholders, it’s still better to pay more than the minimum if you can—or if your budget allows it, always pay your monthly dues in full. This will help you avoid falling into a cycle of revolving debt. 

Aside from the minimum amount due, you should also know other important fees and charges related to your credit card. Doing so will allow you to better manage your finances and maintain a good credit score.

See also: Credit Card Dos and Don’ts: What Should You Do and Not Do with Your Card?

Sources:

• ^[1] UnionBank Credit Card Terms and Conditions
• ^[2] Metrobank Cardholder Advisory on Select Fees and Charges
• ^[3] HSBC Credit Card Terms
• ^[4] Security Bank: How Much Is the Minimum Payment Required?
• ^[5] BPI: Updates on the Minimum Amount Due Computation for Credit Cards
• ^[6] RCBC Credit Card Fees and Charges
• ^[7] PNB Credit Cards Minimum Amount Due Update
• ^[8] AUB Credit Cards Terms and Conditions
• ^[9] Bank of Commerce Credit Cards
• ^[10] Robinsons Cashback Card Terms and Conditions