In the National Credit Act's language, a credit card is a credit facility: credit you can draw on, repay and draw on again, up to a limit. That label decides which rules apply to it.
The maximum interest rate
Interest on a credit facility can't be more than the Reserve Bank's repo rate plus 14% a year. With the repo rate at 7.25% (from 25 September 2026), the maximum is 21.25%. When the repo rate changes, the maximum changes with it, so the rate on your card can move too.
Fees
- Initiation fee: at most R165 plus 10% of the amount above R1,000, and never more than R1,050.
- Monthly service fee: at most R60.
These caps apply to agreements made from 6 May 2016.
Straight and budget facilities
Most South African cards offer two ways to repay a purchase:
- Straight: the purchase joins your balance, and you repay it with your monthly payment, minimum or more.
- Budget: you choose, at the till, to repay a purchase in fixed instalments over a set number of months, with interest from the start.
Each bank sets its own rules for these, including the interest-free period and the budget terms available, so check your card's terms.
Minimum payments
The Act doesn't set a minimum payment. Each bank sets its own, as a percentage of the balance. Paying only the minimum takes a very long time: see why minimum payments take so long.
Your rights
You can pay extra or settle the balance at any time without penalty (section 126 of the Act). If you fall behind, interest and charges that build up while you're in default can't exceed the balance owed when you defaulted (section 103(5)).
Our credit card repayment calculator checks your rate against the legal maximum. We don't offer credit or recommend cards.
What the cap means in rand
On a R20,000 balance at the maximum 21.25%, a month's interest is R354.17. If the repo rate rose by a quarter of a percentage point, the maximum would become 21.5%, and that month's interest R358.33. Small changes add up over the years a balance can take to clear.
Sources
- Government Gazette 39379: review of limitations on fees and interest rates
- National Credit Regulator: Circular 8 of 2016
- National Credit Act 34 of 2005
- South African Reserve Bank: MPC statement, September 2026
This is general information, not tax, legal or financial advice.