No more international transactions on Naira cards ― Banks

No more international transactions on Naira cards ― Banks
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Banks in Nigeria have announced the stoppage of Naira cards for International online and Point of Sale (PoS) transactions, limiting how much a customer could withdraw from offshore ATMs with dollar cards.

Some banks have already told their customers about the latest development.

GTBank would no longer permit online and PoS transactions with naira cards, effective from December 31, 2022.

In its mail to customers, GTCO said: “Update on Your Naira Card for International Spending, we write to inform you that you will no longer be able to use your Naira Mastercard for International Oline and POS transactions effective 31st December 2022. You can use your GTBank dollar card for all your international spending requirements.”

This is not unconnected to the move to reduce dollar spending abroad and save foreign exchange for the economy.

First Bank of Nigeria Limited, had, on September 30, suspended international transactions on its naira Mastercard.

“Due to current market realities on foreign exchange, you will no longer be able to use the Naira Mastercard, Naira Credit Card, our Virtual card, and Visa Prepaid Naira card for international transactions. This will take effect on 30 September 2022,” First Bank said.

Standard Chartered Bank suspended international transactions on its naira visa debit card in July.

Fintech firms, Flutterwave, Eversend, and other fintech platforms have stopped virtual card services for international transactions.

In March, financial institutions cut the international spending limit on naira cards from $100 to $20 monthly.

Zenith Bank Plc sent emailed note to customers on the new payment plan abroad. The bank said: “Please be informed that we have temporarily suspended the use of Zenith Bank Naira cards for International Automated Teller Machine (ATM) cash withdrawals and PoS transactions.”

“Additionally, the monthly card spending limit for web transactions has been reviewed from $100 to $20. This review is in response to today’s economic realities.”

Stanbic IBTC Bank and Standard Chartered Bank Nigeria implored customers seeking to carry out transactions denominated in foreign exchange to apply for dollar or pounds sterling debit credit cards.

However, in the past few months, banks have reduced the total monthly amount of forex-denominated transactions that customers can do, using their naira debit or credit cards via ATMs and PoS terminals abroad as online payments or transactions.



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