(MENAFN- Daily News Egypt) The Central bank of Egypt (CBE) has issued new regulatory instructions to simplify the use of credit cards for travel purposes.
According to a statement from the CBE, banks are required to activate the maximum credit limit for credit card users traveling abroad as soon as customers notify the bank's service center. This is in line with the bank's regulatory procedures.
Until the bank receives notification from customers to activate the credit card limit, there will be a monthly maximum limit set for credit cards, as determined by each bank.
The purpose of this step is to meet the needs of citizens and make it easier for them to use credit cards for expenses while traveling abroad. It also aims to prevent misuse of these cards, such as cash withdrawals from abroad without actually traveling.
Local banks have begun informing their customers about these instructions and how to comply with them.
The National Bank of Egypt (NBE), the largest bank in the country, explained that customers who want to use their credit cards in foreign currency while traveling must visit the nearest branch and provide proof of travel at least 48 hours before their departure. This allows the bank to set appropriate limits for their cards during their travel period.
The bank requires several documents to verify this, including a valid passport, a confirmed round-trip airline ticket, a valid visa (if required), and any other documents deemed necessary by the bank.
Once a customer submits a request, they will be able to use their credit cards as usual. However, the request is subject to acceptance or rejection based on the bank's evaluation.
If a customer is already outside of Egypt before the issuance of these instructions, they must notify the bank via a phone call to the call center and provide the necessary documents as proof.
For customers who want to use their credit cards for education or medical purposes, they must submit documents to support their claim.
For customers with current or new credit cards located within Egypt, as well as those who are abroad for reasons other than education or medical treatment and have not submitted travel documents, they can use their credit cards in foreign currency with a maximum limit of $250 per month for purchases or cash withdrawals, or the equivalent in other foreign currencies.
The maximum amount for a single transaction in foreign currency is determined by the individual credit card's limit. If a customer has multiple NBE credit cards, the monthly maximum limit for all cards combined will be the limit set for their card.
The foreign currency usage limits for cards are subject to the credit limit or specifications of each card, whichever is lower.
The bank has also announced that the use of its credit cards has been restricted at certain stores, such as those selling electronic wallets in foreign currency and jewelry stores. However, the use of foreign currency cards is still allowed for other transactions, including purchases and cash withdrawals.
The bank has emphasized that there is a 10% commission for using credit cards in foreign currency (markup fees). This commission applies to all transactions conducted using the Dynamic Currency Conversion feature.
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