The minimum payment is the smallest amount a credit-card issuer requires a cardholder to pay by the due date.
A card statement normally shows the current balance, the minimum payment, and the payment due date. The minimum is calculated under the issuer’s terms and may include a percentage of the balance, interest, fees, a fixed minimum, or combinations of these elements.
Paying only the minimum generally keeps the account from being treated as late, but it can leave principal outstanding for a long time. Interest may continue to accrue according to the card agreement, and new purchases can add to the balance. Paying the statement balance in full can avoid purchase interest when the card’s grace-period terms apply.
The minimum payment is not the same as the statement balance or credit limit. Missing it may result in late fees, penalty consequences, or credit-reporting problems, depending on the issuer’s policies and applicable law.