Clampdown calls for hard cash
ZIMBABWE is tightening usage of Visa and MasterCard credit and debit cards as some banks now require that depositors fund their accounts with hard cash for use outside the country although retailers in the country have been benefiting from the cash shortages, with sales volumes at OK Zimbabwe increasing.
The introduction of bond notes, which trade at par with the US dollar, has failed to stem the liquidity crisis in Zimbabwe as banks continue to run out of cash.
Zimbabwean credit and debit card holders have been required to apply for activation of their cards for use while travelling outside the country.
But CBZ Bank, one of the country’s biggest banks, has now further restricted withdrawals and usage on Visa cards. “In line with market developments we would like to advise that effective August 1, 2017 we have reviewed the terms and conditions of the international visa cards,” CBZ said in a note to depositors holding Visa cards.
The bank has moved to restrict its Visa card holders to $200 per day on ATMs and $1 000 for online payments and foreign Point Of Sale purchases. Zimbabwean authorities have previously said banks should localise Visa and MasterCard credit cards.
MultiChoice, which said this week it was not moving out of Zimbabwe, has also experienced disruptions on its payment platforms with some banks now tightly restriction payments for the DStv platform using foreign currency.
Some banks now require that DStv account holders bring foreign currency to pay for their MultiChoice accounts but the South African pay television operator has said account holders may also ask their relatives and friends in South Africa to pay for them using rand accounts.
Although the cash shortages in Zimbabwe have been disruptive for banks and MultiChoice, it appears retailers in the country have benefited from this. OK Zimbabwe, the Zimbabwean competitor of Pick n Pay, said on Thursday that revenues for the quarter to the end of June grew by 19 percent.
Alex Siyavora, chief executive officer of OK Zimbabwe, told shareholders, “Our promotions were successful and contributed meaningfully to the quarter’s performance.”