Online transactions hampered by new credit card rule
A new rule requiring customers to obtain a certificate before completing a transaction online is causing people a lot of grief with businessmen in the IT sector suffering in particular.
Bangladesh Bank issued the circular last week according to which, customers must seek authorisation to make online purchases using foreign currency by filling up a form and submitting it to their respective banks.
The measure was adopted to prevent the purchase of cryptocurrency online, lottery tickets, gambling and misuse of the international credit card, according to the central bank.
But bankers and customers have slated the rule as 'impractical' and time-consuming while increasing the costs of transaction for all concerned. The authorities should have discussed the issue with banks issuing the rule, they added. "The decision is not practical at all," Mutual Trust Bank Managing Director Anis A Khan told bdews24.com.
Bangladesh Consultant is a company that provides domain and hosting services
and develop websites for its customers. "We have to buy themes regularly for the domain and hosting services using an international credit card," Baki Billah, director of Bangladesh Consultant told bdnews24.com.
"We have stopped providing the service to our customers due to the new rule. It is practically impossible to fill up the form and submit it to the bank for each transaction.
"The new circular by the central bank is hampering our business," said Mushfiqur Rahman, Managing Partner of Spectrum Software and Consulting Limited.
"We need to buy toolkit worth $500 to 1000 frequently for the software we use. Sometimes we buy them thrice a day."
Besides, the international credit card is needed to make immediate transactions, he said.
The government has permitted members of Bangladesh Association of Software and Information Services (BASIS) to spend up to $30,000 per year but the business will now be affected by the circular, said Mushfiqur, vice president of BASIS.
A customer has to fill up the online transaction form or OTF and submit it either through a mobile app, an internet platform or as a hard copy before purchasing goods or services online using an international credit card, according to the circular issued by the foreign currency policy department of Bangladesh Bank.
The respective bank will then scrutinise the form and activate the credit card if no irregularity is found. The credit card will be deactivated automatically once the transaction is complete.