GTBank Suspends International Transactions On Naira Mastercards
As the dollar liquidity crisis worsens, Guaranty Trust Bank (GTCO) has announced the suspension of international online and PoS transactions on naira-denominated ATM cards effective from December 31, 2022, swelling the number of commercial banks and fintech firms which suspended naira card transactions abroad.
In a letter to its customers on Thursday, the Tier 1 lender wrote: “Dear Customer, we write to inform you that you will no longer be able to use your Naira Mastercard for international online and POS transactions effective 31st December 2022. Kindly note that you can use your GTBank dollar card for all your international spending requirements.”
Of this development, the Bank requires customers to use only dollar-denominated cards for all their international transactions but did not give any reason for this action.
According to the bank, the dollar card allows ATM Withdrawal of $1,000 daily or the equivalent in the transaction’s local currency. It added that with the dollar card, there is no limit to international PoS or online transactions. There will also be no annual spending limit.
Recall that First Bank, Stanbic IBTC, and Standard Chartered Bank have also earlier in the year announced the suspension of their overseas ATM card services. Some fintech firms including Flutterwave, Eversend, and others also stopped virtual card services for international transactions.
When First Bank announced its suspension of international transactions on its naira Mastercard virtual card and visa prepaid naira card earlier in September, the lender had told customers that “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.”
“Please use your Visa Debit Multicurrency Card, Visa Prepaid (USD) Card, and Visa Gold Credit Card to continue transacting abroad with limits of up to $10,000,” the bank advised customers in an emailed statement.
Both Stanbic IBTC Bank and Standard Chartered Bank Nigeria advised customers seeking to carry out transactions denominated in foreign exchange to apply for Dollar or Pounds Sterling debit credit cards.
In July, Standard Chartered Bank suspended international transactions on its naira visa debit card.
In March, financial institutions cut the international spending limit on naira cards from $100 to $20 monthly.
Zenith Bank Plc also sent emailed notes to customers saying: “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.
“If you have higher International spend requirements, simply visit any of our branches and request for foreign currency debit or prepaid card, which are available in US dollars, Pounds, and Euro variants.”
According to them, the dollar or pounds sterling debit or credit cards will be linked to the customers’ domiciliary accounts.
Prior to summary suspension, commercial banks had reduced the monthly total amount of forex-denominated transactions that customers could do using their naira debit or credit cards via ATMs and PoS terminals abroad as well as online payments or transactions. But as foreign exchange scarcity increasingly got worse, the lenders outrightly suspended the transactions.
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