The Philippines is experiencing growth in online transactions, and credit cards are becoming one of the acceptable payment options across every industry in the country. It’s particularly becoming a popular payment choice for e-commerce and online gaming platforms.
Filipino players seamlessly use it for purchases and deposits. But to what extent is the payment choice reliable in the Philippines? Let us dig into some intricacies of the payment gateway for Filipinos.
The Growth of Credit Card Payments in the Philippines
The convenience of credit card payment gateways in the Philippines cannot be overstated. The card can be used for shopping, paying bills and depositing on platforms like online sites that accept credit cards in the Philippines.
In 2023, Bangko Sentral ng Pilipinas (BSP) reported that the number of active credit cards in the country exceeded 11 million.
Statista also stated that credit card and charge payments in the country have reached 1.7 trillion PHP as of Q4 of 2023.
This is a great indication that consumer attitude has shifted in recent years as there is a positive growing adoption of cashless transactions in the country. The shift is a result of an increase in confidence in digital platforms and the ease which comes with making payments online over the traditional bank process.
What is Straight Payment in a Credit Card?
In the Philippines, one of the common terms attributed to credit cards is straight payment. What does it mean? It simply refers to a one-time payment format purchase charged to a credit card. It’s unlike installments that spread out credit accrued over several months. For example, individuals can buy a product for 5000 PHP and use straight payment. It means the amount will appear in full on their next credit card bill.
It’s particularly good for players who want to avoid interest fees. There won’t be interest fees once the payment is made fully by the due date.
How Does Credit Card Payment Work in the Philippines?
Credit card payment works in the Philippines as it is in other regions but with some specific characteristics and terminology. There are some actors in the process. Let’s break it down.
The bank will issue a credit card to any interested person. These are typical credit cards like VISA, MasterCard and JCB. Then, merchants like restaurants, restaurants or online platforms like casinos will partner with Philippines banks to accept the card issued to the cardholder as a payment method.
The merchant will install a payment gateway, a technology that can securely process the card details. Whenever the cardholder makes a purchase, they will swipe or input their card through the payment technology. The merchant’s payment gateway will contact the acquiring bank. The bank will forward the transaction information to the card network. The network will then be sent to the issuing bank.
The issuing bank will verify the card details by making important checks like the available credit limits and if the card has no encumbrances like being reported lost or stolen. Then, the issuing bank will send back authorization responses to the card network and be forwarded to the acquiring bank. If the transaction is approved, the acquiring bank will settle the payment with the merchant. This can be a daily or monthly settlement. The issuing bank will forward the transaction details to the cardholder.
All these are processed within a few seconds, but what happens behind the scenes is multiple confirmations of users’ information between 3 different networks.
You may be thinking, how many days to reflect credit card payment?, it usually takes between 1 to 3 business days for payments to reflect. This depends on your issuing bank. However, delays can happen during holidays or on weekends.
What Happens if I Only Pay the Minimum Payment on My Credit Card?
In the Philippines, paying only the minimum amount due is allowed by credit card companies. But there is a consequence. Though there won’t be a fine for paying late, the remaining balances will accumulate interest. For example, if a cardholder accrues up to 10,000 PHP but has to pay 500 PHP as a minimum, the balance of 9500 PHP can accumulate interest of up to 4% in a month. As the BSP emphasizes, “It is always better to pay more than the minimum to avoid high-interest charges.”
The Security of Credit Card Payment Gateways in the Philippines
The Philippines offers many credit card payment gateways that provide a secure platform for transactions. The best among them are PayMaya, Dragonpay, and GCash. These top philippines gateway are encrypted with modern technologies and can have fraud detection resources to protect users.
The gateway payment is also available for online casinos. Some Philippine casino platforms do give special incentives to players who use credit cards as payment methods. As a Philippines player, the best gaming experience is to look for casino online sites that accept credit card in Philippines. This is because credit card payment provides a fast and convenient way to deposit funds.
In essence, a payment gateway is not only available in the Philippines but it’s widely adopted. In fact, the data from the Credit Card Association of the Philippines (CCAP) shows that “credit card spending increased by 39% to reach P853 billion in the first half of 2023, up 29% year-on-year.”