The Central Bank of Iraq sets regulations for the international use of bank cards
The Central Bank of Iraq sets regulations for the international use of bank cards
2025-04-07 02:58
Shafaq News/ The Central Bank of Iraq issued a new circular containing regulations for the use of bank cards (credit, debit, and prepaid) outside Iraq. This circular aims to strengthen oversight of international transactions and ensure the safety of future growth in international settlement payments.
The circular, dated Monday, April 7, 2025, and received by Shafaq News Agency, stated that the new cards will be activated for use outside Iraq 30 days after their issuance date. The relevant authorities will later be provided with lists of relevant merchant categories (MCC Codes) within the specified controls.
The Central Bank confirmed the suspension of these rules effective April 20, 2020, with the possibility of reviewing them periodically to support the sustainable growth of international settlement payments.
He also noted that the current limits on international transactions involving prepaid cards, whether issued by banks or payment service companies, will remain in effect.
On the other hand, the circular clarified that travelers will continue to receive their foreign currency (dollars) at the official Central Bank rate, in accordance with the procedures adopted within the current e-governance system.
The bank confirmed in its circular that the new limits aim to regulate the use of payment cards issued by Iraqi banks, including debit and credit cards, according to the following categories:
Retirees: $10,000 per month or equivalent.
Travel: $20,000 per month or equivalent, including airfare, hotel reservations, and car rentals.
Treatment outside Iraq: $50,000 per month or equivalent.
General uses outside Iraq: $5,000 per month or equivalent.
He added that the maximum limit for using merchant bank cards outside Iraq will be $20,000 per month or its equivalent.
He also indicated that the new cards (debit, credit, and prepaid) for international use will be activated 30 days after their issuance date, with these rules to be implemented starting April 8, 2025, and to be reviewed periodically to support the growth of international payments.
The bank explained that it will later provide the relevant authorities with the merchant category codes (MCC codes) associated with these regulations, while the current ceilings for prepaid cards issued by banks or payment service providers will remain in effect.
The Central Bank sent a copy of the circular to a number of entities, including the Banking Supervision Department, the Non-Banking Financial Institutions Supervision Directorate, government and private banks, branches of foreign banks operating in Iraq, and electronic payment service companies, urging them to adhere to the aforementioned regulations.
shafaq.com
