Okuzeka
Finance & Banking vocabulary · Payments & Cards

Minimum payment

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, minimum payment means: The smallest amount a credit card holder must pay by the due date to keep the account in good standing. Interest is usually charged on the rest.

In Turkish: asgari ödeme tutarı, asgari ödeme

How it is used

Used on card statements and in collections. Customers make or miss the minimum payment, and regulators often set rules for how it is calculated. Paying only the minimum keeps the card active but makes the debt last longer.

Example sentences

  1. If you miss the minimum payment, a late fee will be added to your card.

  2. The minimum payment on this statement is 1,500 lira.

Common collocations

  • make the minimum payment
  • miss the minimum payment
  • minimum payment due
  • pay only the minimum
  • credit cardA plastic or digital card that lets you buy now and pay the bank later. You can spend up to a limit and pay interest if you do not repay the full amount on time.
  • credit limitThe maximum amount a bank allows a customer to borrow on a credit card or a credit line.
  • outstandingNot yet paid or settled. An outstanding loan or invoice still has money owed on it.
  • compound interestInterest calculated on both the original amount and the interest already added, so the total grows faster over time than with simple interest.

More terms: Payments & Cards

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This page explains English vocabulary for learners. It is not financial advice.