Wednesday February 21st, 2024
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Credit Card Use Abroad Suspended for Failure to Provide Proof of Usage

Last October, the CBE had initially directed banks to restrict the use of 'direct debit cards' for customers abroad.

Cairo Scene

The Central Bank of Egypt (CBE) has issued new instructions to banks regarding the use of credit cards abroad. The instructions target customers who have failed to provide proof of credit card usage while abroad within 90 days from the date of opening the usage limits.

In a letter addressed to banks on Sunday, February 11th, the CBE reiterated its commitment to halt the use of credit cards and list customers on the platform managed by the Egyptian Credit Bureau and the CBE’s credit registration system.

Banks are now obliged to suspend the use of credit cards abroad for customers listed in the daily report generated by the Egyptian Credit Bureau, according to the CBE’s instructions. Additionally, customers listed on the aforementioned platform will not be issued new credit cards nor will the usage limits of existing cards be opened for foreign usage.

To ensure compliance, the CBE stressed the importance of sending text messages to customers who fail to submit the necessary documents within the specified timeframe before the cards are suspended.

These new controls, introduced in line with instructions issued on October 29, are aimed at regulating the usage of credit cards for international travel. These measures aim to deter any attempt at fraud or non-compliance with the specified usage instructions.

Last October, the CBE had initially directed banks to restrict the use of 'direct debit cards' for customers abroad, limiting their usage to within Egypt only. However, the bank later eased restrictions and removed the requirement for customers to provide proof of travel before departure.