How are credit-card payments applied when balances have different interest rates?

When a credit card debt contains billed balances with different interest rates, the BSP rule sets an order for the portion paid above the minimum payment amount. That excess goes first to fees and charges. It then goes to the billed balance with the highest interest rate, followed by the next-highest rate, until the payment is used up.

Promotional balances use their original rates

For promotional offers, the original promotional rates are used to determine the payment hierarchy. The rule gives the order for allocating amounts above the minimum payment; it does not say that every peso of the minimum payment itself must follow this same sequence.

What the rule covers

The cited provision applies when a bank credit-card account carries different rates for categories such as cash advances, regular purchases, and balance transfers. It explains allocation order, not whether unpaid credit card debt is valid, how a disputed charge should be resolved, or what a cardholder's required minimum payment will be. Those questions depend on other rules and the account agreement.