CBZ to suspend local use of VISA cards, sets new limits for international payments

As of 5 January 2017, all CBZ issued VISA cards will cease to work locally (within Zimbabwe) but will continue to work outside of Zimbabwe for at ATMs, POS machines and any internet related transaction.

Not only will CBZ stop the use of VISA cards locally but it is also set to review the VISA card per day limits for international transactions. The new per day limits are as follows:

• ATM Outside of Zimbabwe: US$250 per day
• POS Outside of Zimbabwe: US$1.000 per day
• Internet Payments: US$ 500.00 per day

This means for local transactions CBZ account holders will have to revert back to using their local Zimswitch cards which Techzim assumed people have always been using or should start using seeing that the RBZ recently reduced transaction costs.

Of more concern is the clear disparity between local and international transactions coming to fold in Zimbabwe, a situation that was not present pre-bond note introduction.

Techzim expects CBZ to do the same thing FBC recently did by making VISA client deposit USD in cash if they want to use their VISA cards internationally, they will most likely suspend any local transfers into their VISA accounts and refuse bond note deposits which go against the public notion that bond notes are on par with USD.

Also, for the CBZ to succumb to “market conditions” is worrying seeing that the bank is long known for its close ties to the Government (which owns 16% shareholding) and upholding its policies and regulations.

Techzim expects to see a lot more Banks follow suit in the coming weeks.