BB allows overseas payment with int’l credit card

May 31, 2013

The Bangladesh Bank on Thursday decided to allow international credit cardholders to purchase goods and services online in foreign currency.
The BB in a circular said that the cardholders could spend $1,000 a year in addition to unused yearly travel quota under the online payment system.A Bangladeshi citizen can carry $2,000 in travelling to the SAARC countries and $5,000 to other countries.
But a single online transaction will not exceed $100 or its equivalent, said the BB.
Online payment for purchase like downloadable application software and e-books would be limited to the available unused annual travel quotas of the international credit cardholders plus an additional amount not exceeding $1,000 annually, the circular said.
A BB official told New Age on Thursday that any cardholder could buy anything legal with a value of up to $100. ‘The dual currency cardholders who are under travel quota system will also get the benefit of the system,’ he said.
He said that the central bank had introduced initial phase of the e-commerce with foreign countries by allowing online purchase of goods and services.
The clients earlier could purchase the goods and services by opening letters of credit with the banks, a BB official said.
The country’s commercial banks generally issue three types of international credit cards to their clients under three quotas — travel quota, exporter retention quota and resident foreign currency deposit quota, he said.
‘A significant number of clients of the banks are holding the international credit cards under the travel quota. For the reason, the e-commerce between Bangladesh and foreign countries may accelerate in the quickest possible time,’ he said.
The BB circular said that the international credit cardholders would take all the responsibilities of each transaction and paying duties and taxes, if applicable in case of purchasing goods and services.
Another BB official said that the decision to allow the e-commerce with foreign countries had taken considering the young generation.
The BB also issued a separate press release on the day in which it cautioned that the clients should take cautionary steps in purchasing goods and service in order to avoid unscrupulous traders.
The central bank partly opened foreign exchange transactions by allowing online transfer of funds for academic purposes by credit cards in July 2011.
In December 2012, it allowed international credit cardholders for travel related payments abroad, online payment of fees and online hotel booking.

-With New Age input

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