Section 24Sec./Art. 24

Application of Card Payment. - Upon receipt of a payment from a cardholder whose account carries different interest rates for different types of purchases (i.e. cash advances, regular purchases, balance transfers), the credit card issuer shall apply amounts in excess of the minimum payment amount first to the fees and charges, and then to the billed balance bearing the highest rate of interest, followed by the billed balance bearing the next higher rate of interest, until the payment is exhausted: Provided, That the original rates for promotional offers shall be the basis for determining hierarchy of payment.