JUST IN: Banks Suspend Naira Cards For All Transactions

JUST IN: Banks Suspend Naira Cards For All Transactions

Banks in Nigeria have announced stoppage of use of naira card for International online and Point of Sale (PoS) transactions.

The banks also placed limits on how much a customer can withdrawal from offshore ATMs with dollar cards.

In one of the messages to customers, GTBank yesterday stated that it would no longer permit online and PoS transactions with naira cards effective December 31, 2022. It also said that use of dollar cards will have to comply with international spending requirements including a $1,000 daily limit or naira equivalent.

In the note titled “Update on Your Naira Card for International Spending”, the bank said:”We write to inform you that you will no longer be able to use your Naira Mastercard for international Oline and POS transactions effective 31st December 2022. Kindly note that you can use your GTBank dollar card for all your international spending requirements”.

The card restriction by banks is part of moves to reduce dollar spendings abroad and save foreign exchange for the economy.

First Bank of Nigeria Limited had suspended international transactions on its naira Mastercard from 30th of September.

Bank’s decision followed the consistent dollar scarcity and challenges faced by manufacturers and other real sector operators in sourcing foreign exchange from the economy.

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Recently, Zenith Bank announced that it has temporarily suspended international cash withdrawals through Automatic Transactions Machine (ATM) and PoS transactions.

Likewise, Stanbic IBTC Bank, Guaranty Trust Bank (GTB) had few years ago announced the stoppage of international transactions through Pos or ATM.

In July, Standard Chartered Bank suspended international transactions on its naira visa debit card.

Fintech firms- Flutterwave, Eversend and other fintech platforms had also stopped virtual card services for international transactions.

In March, financial institutions cut the international spending limit on naira cards from $100 to $20 monthly.