11:40 p.m
Saturday 01 October 2022
I wrote – Manal Al-Masry:
Banking sources told Masrawy that banks are currently studying limiting the use of direct debit cards linked to the customer’s account known as “Al-Dabt”, and “Credit Card” on cash withdrawals outside Egypt because of the noticeable increase in withdrawals in dollars and euros.
The sources added that the banks are currently studying preparing a proposal to increase the commission rate and fees on cash withdrawals outside Egypt using credit and debit cards, as well as reducing the permissible limits for cash withdrawals outside Egypt, then submitting it to the Central Bank for approval.
Banks allow their customers to use their various types of bank cards denominated in Egyptian pounds outside Egypt to purchase or withdraw cash in the currency of the country in which the customer is located through an international SWIFT system that allows the exchange of any card currency in the currency in which the customer is present in return for a commission deduction to provide the service.
Banks accept a commission on the use of bank cards outside Egypt for cash withdrawals from automated teller machines “ATM” at a rate of 6% of the total value of each withdrawal, ranging from 3% commission for exchanging currency from EGP to the currency of the country in which the customer is located, and 3% commission for using a machine outside Egypt.
This comes in addition to fees approved by some banks, ranging from 20 pounds to 50 pounds for each withdrawal, along with the commission.
Each bank sets a maximum limit for cash withdrawals via bank cards outside Egypt per day and month, with more flexibility on electronic purchases.
The sources explained, to Masrawy, that the banks’ study of increasing commissions on cash withdrawals outside Egypt using bank cards came following a meeting held with the Central Bank during the past few days to discuss many issues, including the presence of more cash withdrawals than usual outside Egypt, especially through the credit card dedicated to purchases. .
The sources stated that the banks will move to reduce cash withdrawals outside Egypt by using credit, especially since this type of card is intended for electronic purchase rather than withdrawal, which reflects the existence of uses that may be unjustified and not intended for its purpose.
The banks’ move to limit the use of debit and credit cards reminds us of the decision of Tariq Amer, the former central bank governor, before the decision to liberalize the exchange rate 7 years ago – during the currency shortage crisis – to discover wrong practices on the use of cards outside Egypt, which necessitated the legalization of their use conditions.
According to the latest report of the Central Bank, the number of bank cards issued by the banking system of all three types reached 55.645 million cards until the end of last June.
The number of credit cards issued by the banking system recorded only 4.810 million cards, while the number of direct debit cards was recorded last, and 22.960 million cards, and the number of prepaid cards jumped to 28.3 million prepaid cards at the end of the first half of this year.
