2023-10-10 09:59:00
12:59 PM Tuesday, October 10, 2023
Written by Manal Al-Masry:
Most banks operating in Egypt will stop activating the use of direct debit cards (Debit) linked to customer accounts outside Egypt, starting tomorrow, Wednesday, in response to verbal instructions issued to them by the Central Bank, according to banking sources that Masrawy spoke to and a text message that he reviewed.
The Central Bank obligated, via a text message, to banks to close international direct debit card transactions without exception, no later than tomorrow.
While there are a few banks remaining, the instructions will be implemented sequentially over the next few days until the middle of the month.
A number of banks announced, starting last week and throughout the current week, the cessation of transactions on this type of card, including the Arab African International Bank starting last Thursday, the National and Misr Banks starting yesterday, Monday, the Commercial International and Cairo Banks starting today, Tuesday, Alexandria Banks starting tomorrow, and other banks. The other.
Some of the bankers attributed the Central Bank’s closure of all direct debit cards outside Egypt to come following it discovered misuse by some customers of using cards outside Egypt, including using bank cards for others without leaving the country at a time when Egypt is facing a foreign exchange shortage crisis and working to reduce the depletion of the dollar. The spread of black market currency trading.
Yesterday, Cairo International Airport Customs announced the arrest of an Egyptian passenger carrying 117 Visa cards in different names and accounts in various banks. Immediately upon his arrival from the UAE, he tried to pass through customs officers, and when his bags were searched, the cards were found and legal measures were taken once morest him.
These instructions mean limiting the use of direct debit cards to local transactions only, without using them outside Egypt in cash withdrawal transactions from ATM machines, electronic purchases from merchants through POS machines, or purchases from the Internet in foreign currency.
The sources said that the Central Bank allowed banks to use credit cards known as “Credit Cards” for customers, which are issued by guaranteeing a portion of customers’ savings at the bank, or to transfer the salary to the bank outside Egypt, to withdraw cash from ATMs and make POS purchases.
The Central Bank’s suspension of direct debit cards outside Egypt came following it obligated banks four months ago to stop prepaid cards outside the country, citing misuse by customers and the difficulty of tracking the person who received the transaction due to issuing this type of card with a photo of the ID card only, without the need to open a bank account.
The Russian-Ukrainian war caused the exit of regarding $22 billion in indirect foreign investments during the past year, which were financed by the banking system, which led to pressure on the currency.
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