Another Zimbabwean bank stops use of debit cards outside the country

Standard Chartered Bank, Zimbabwe’s oldest bank, on Tuesday became the latest to suspend the use of Visa debit cards outside the country with "immediate effect."

Many locals had become increasingly reliant on their international cards to access cash abroad and from neighbouring countries. The country’s liquidity crunch resulted in most banks imposing stringent withdrawal limits, making it difficult to access savings.

Border towns such as Musina in SA and Francistown in Botswana, where international banks have operations had become popular with Zimbabweans looking to access cash.

Standard Chartered Zimbabwe said its decision was reached to "ensure best use of the increasingly scarce foreign currency" disbursed in line with the priority list issued by the Reserve Bank of Zimbabwe if and when it is available.

The bank’s move follows a similar one by CBZ bank, the country’s largest bank by deposits, which last month suspended use of its visa card payment system. EcoCash, a subsidiary of telecoms company Econet Wireless, recently reduced its daily cash limit of mobile money processed via its MasterCard service to $500 (R6, 650).

Economists expect the trend towards the suspension of international card payment platforms to increase as banks battle with depleting foreign currency reserves in their nostro accounts.

Standard Chartered Zimbabwe said its clients who wished to travel outside Zimbabwe and would want to make use of their visa cards would have to apply for "special consideration" prior to travel.

The bank would need to be notified 72 hours before departure.

"Customers are requested to submit evidence of all the expected expenses to be incurred whilst travelling outside the country … all advance applications will be reviewed in line with the priority list guidelines on external payments announced by the RBZ in 2016," the bank said.

In its results for the half-year to June 2016, presented in August last year, Standard Chartered Zimbabwe reported a profit after tax of $6m versus $1.2m in the previous matching period.

Chairman Samuel Rushwaya ascribed the "significant lift" to cost efficiencies implemented.