• The federal government regulates minimum payment laws.credit card image by jimcox40 from Fotolia.com
  
  The federal government has established rules and laws to regulate credit-card companies. Many of these laws deal with minimum payments and how credit-card companies may calculate and receive payments. Understanding these laws helps consumers avoid surprises, and that knowledge may prevent missed payments. Knowing your rights as a credit-card holder can help with other issues that may arise.
  
  

Amount of Payment

• As of 2005, according to Credit Source Online, minimum credit-card payments must cover all taxes and fees and at least 1 percent of the principal balance. This law was passed because some consumers were making smaller payments to cover only the finance charge, preventing them from paying off the balance for a long time, sometimes 30 years or longer. The regulation ensures that consumers are paying off part of the principal, not just interest and fees. Credit-card companies can, and often do, choose to make the minimum principal payment higher than 1 percent, however.
  
  

Minimum Payment Warning

• Starting in 2010, credit-card companies are required to have a minimum payment warning on all billing statements. According to the Truth in Lending Act, this warning states, "Minimum Payment Warning: Making only the minimum payment will increase the amount of interest you pay and the time it takes to repay your balance." The warning must note how long it will take to pay off the credit card if only minimum payments are made and will specify the amount of the monthly payment needed to pay the card off in three years. The amount of interest you'll pay with each of these options must be included in the warning.
  
  

Entire Balance Due

• Credit-card companies require the entire balance be paid by the next monthly due date in some circumstances. This occurs when the amount owed is less than the minimum stated in your credit-card agreement. As an example, assume $10 is the minimum balance required to make a 1 percent principal payment, but your total balance is only $9. Your minimum payment in this case may not be fees plus 1 percent, but rather the full $9. This minimum balance varies, depending on the credit-card company. The minimum balance requirement is stated in your credit-card agreement or can be obtained by calling the credit-card company.
  
  

Skip Payment Program

• Skip-payment programs are offered by some companies as incentive to apply for their card. This program allows a credit-card user to skip his minimum balance payment in a given billing cycle (usually the December or January billing cycle, because of holiday spending) without incurring the usual fees and credit hits. Not all companies offer this option, and guidelines vary for those that do. Consumers should understand all the terms and provisions of the program before utilizing this option. As of 2010, companies are required to send a "change in terms" notice to consumers who use these programs, according to AllBusiness.com.