The Central Bank of Egypt directed banks to stop using prepaid cards in international transactions, whether for cash withdrawals or online purchases in any foreign currency, according to some bank officials.
“Masrawy” website said, “Some of the public have circulated on social media sites in recent hours a publication to stop using prepaid cards, whether for online purchases or outside Egypt, in any foreign currency other than the Egyptian pound, and some banks have confirmed that.”
Two bank chiefs said, in response to Masrawy’s question, that there are instructions issued by the Central Bank this month to stop international transactions using prepaid cards outside Egypt or for online purchases, with the use of direct debit cards (debits linked to the customer’s account) and credit cards. Outside Egypt and in electronic payment.
And the customer pays any purchases made to him electronically (online), whether from inside or outside Egypt, in any foreign currency that falls within the international transactions due to dealing in a currency other than the local one.
The foreign exchange crisis currently facing Egypt prompted banks to reduce the limits of international transactions by using bank cards of all kinds (credit cards, direct debits, and prepaid cards), whether cash withdrawals or electronic purchases from outside Egypt in any foreign currency.
Banks also raised the commission rate for cash withdrawals outside Egypt from ATMs, by up to 13% of the total transaction value, ranging between 10% as a currency exchange commission, and 3% as a commission for using an external machine, in addition to additional fees of up to 50 pounds on each withdrawal. .
The head of one of the banks explained that the reason for stopping international transactions on prepaid cards is due to the fact that they are not linked to known bank accounts, which may lead to some manipulation or misuse by some customers in dealings outside Egypt by paying in a foreign currency.
Visa and MasterCard International for Electronic Payments operate all cards outside Egypt, including prepaid cards that bear any logo of the two companies, according to the limits allowed for this type of card from Egyptian banks.
As for the Meeza prepaid card issued by the National Payments Network, it is not activated for transactions outside Egypt and is limited to local transactions only.
This article was originally published by RT.