GTBank Blocks Customers From Using Naira Mastercard For International Transactions

Customers of Guaranty Trust Bank (GTBank) have been blocked from conducting international transactions on the naira Mastercard.

The financial institution revealed this in an email sent to account holders titled, ‘Important Update on Your Naira Card for International Spending.’ 

Guaranty Trust Bank said starting from Saturday, December 31, 2022, the firm’s customers will no longer be able to perform foreign transactions on electronic channels such as Point of Sale (PoS), Auto Teller Machine (ATM)with the use of the naira Mastercard. 

Prior to GTBank’s decision, Standard Chartered Bank also suspended foreign transactions on its naira visa debit card at the start of the third quarter. 

Also, Flutterwave and Eversend halted usage of their virtual card services for international transactions, with United Bank for Africa (UBA) and Zenith Bank cutting down their monthly limit on naira cards to $20 from $100.

The email to customers reads, “We write to inform you that you will no longer be able to use your naira Mastercard for international online and POS transactions effective 31st December 2022.”

GTBank further stated that customers interested in performing foreign transactions should make use of the commercial bank’s dollar card to access foreign exchange. 

In the statement, it said, “Kindly note that you can use your GTBank dollar card for all your international spending requirements.” 

It was gathered that with the dollar card, account holders can access $1,000 (or equivalent in the transaction local currency) for their daily international transactions.

Nigerian banks are reviewing their monthly dollar spend limit due to a shortage in foreign reserves. While the international reserves increased from $36.966 billion on Wednesday to $37.075 billion on Thursday, it is reportedly not enough to meet the demands. 

As a result of foreign exchange scarcity, commercial banks and other financial institutions are rationing forex by limiting the number of people that can access the foreign currency for international transactions.