FBC suspends MasterCard transactions to stop double dipping

FBC Bank has suspended real-time gross settlement RTGS) transfers onto its prepaid MasterCard facility, citing abuse by some customers, as banks tighten cash withdrawal restrictions amid an intensifying banknote crisis.

FBC’s prepaid MasterCard is a debit card that can be used to make both local and international payments as well as withdrawals. The card is not account based and is available to the bank’s depositors and those who do not hold FBC Bank accounts.

Zimbabwe is currently in the throes of a deep dollar shortage, forcing banks to tighten measures. The impeding introduction of local bond notes in October have prompted a run on banks as people fear the return of local currency.

FBC spokesperson Priscilla Sadomba said that some card holders were using the prepaid MasterCard to breach the bank’s cash withdrawal limits.

The bank has daily withdrawal limit of $200.

“As you well know, the nation is currently experiencing cash challenges and Nostro funding limitations. In light of this, maximum daily withdrawal limits have been implemented across the banking sector,” Sadomba said.

“Besides its use locally, the MasterCard is a tool which enables people to transact via the internet and it allows for cash withdrawals and POS (transactions) when outside Zimbabwe. Now what some unscrupulous individuals have been doing, is doing RTGS transfers from their bank accounts onto the prepaid MasterCard,” she said.

Sadomba said card holders would then send their cards outside the country to make cash withdrawals there.

“So in order to stop those individuals who are trying to circumvent the system by double dipping, we have had to implement this measure,” she added.-The Source

Related stories:

Britain warns citizens visiting Zimbabwe about possible cash shortages

IMF to assess impact of introducing bond notes in Zimbabwe

Reserve Bank of Zimbabwe to force businesses to bank cash

Ecocash to be hit by cash crisis

UK says bond notes could be damaging to confidence in Zimbabwe economy

Multi-currency system is dead says RBZ

Zimbabwean company says “bond notes” are adding to uncertainty

Chinamasa says Zimbabwe will not be a “fishing pond” for US dollars

Zimbabwe hires German firm to print bond notes

Zimbabwe’s bumpy, costly road to a cashless future

The government’s hidden hand in Zimbabwe’s cash crisis 

Chinotimba says give people bond coins if they do not like bond notes

Chinamasa tells Parliament that bond notes are above board

Zimbabwe says it needs bond notes because “we are feeding looters”

Zimbabwe scraps plans to convert export earnings into rand, euro

Tsvangirai calls emergency national executive meeting Thursday to decide way forward on bond notes

It’s a stimulus package- Mangudya says

Tsvangirai to convene his cabinet tomorrow to discuss proposed bond notes

Bond notes -a legal perspective

How people pay in Zimbabwe

Zimbabwe stems illicit outflows

Cash shortages – the real causes and the wrong diagnosis

New bond notes-key questions answered

Industry embraces bond notes

Mangudya full statement on the introduction of bond notes

Highlights of RBZ intervention on cash shortages

MDC says Mugabe is bringing back Zimbabwe dollar through the back door

Zimbabwe to introduce bond notes as cash shortages bite

(463 VIEWS)