23:40
Saturday 01 October 2022
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I wrote – Manal Al-Masry:
Bank 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. due to the significant increase in withdrawals in dollars and euros.
The sources added that banks are currently studying preparing a proposal to increase the fee and fees on cash withdrawals outside Egypt using credit and debit cards, as well as reducing the limits allowed for cash withdrawals out of Egypt. from Egypt, then presenting it to the Central Bank for approval.
Banks allow their customers to use various types of Egyptian pound-denominated bank cards outside of Egypt to purchase or withdraw cash in the currency of the country where the customer is located via an international SWIFT system that allows for the exchange of any currency of the card in the currency in which the customer is present against a deduction of the commissions for the provision of the service.
Banks accept a fee on the use of bank cards outside Egypt for cash withdrawals from ATMs at a rate of 6% of the total value of each withdrawal, ranging from the 3% fee for the currency exchange from EGP to the currency of the country where the customer is located and a 3% commission for using a machine outside of Egypt.
This is on top of the fees approved by some banks, which range from £ 20 to £ 50 for each withdrawal, along with the fee.
Each bank sets a maximum limit for cash withdrawals via bank cards outside of Egypt per day and per month, with more flexibility on electronic purchases.
The sources explained, to Masrawy, that the banks’ study on increasing fees on cash withdrawals outside Egypt via bank cards came after a meeting held in recent days with the Central Bank to discuss many issues, including which the presence of more cash withdrawals than usual outside Egypt, especially through the credit card dedicated to purchases. .
Sources say banks will move to reduce cash withdrawals outside Egypt using credit, especially as this type of card is intended for electronic purchase rather than withdrawal, reflecting the existence of uses that may be unwarranted and not intended for its purpose.
The move by banks to restrict 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 shortage crisis of currency – to uncover wrong practices on the use of cards outside Egypt, which made it necessary to legalize their conditions of use.
According to the latest Central Bank report, 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 last recorded, 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.
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