Phase out cards with magnetic strips by Dec

The central bank yesterday instructed banks not to issue any credit or debit card with magnetic strips from next year, with a view to safeguarding customers against fraud.

Several lenders did not replace their branded magnetic strip cards with ones with the chip-and-pin technology within the deadline of June 30, saying this would fuel their cost, said a Bangladesh Bank official.

Banks will have to start using the chip-and-pin technology for their branded cards by February next year, according to a central bank notice sent out to all lenders.

Major local banks are operating their card business by using the technology of five global brands -- Visa, MasterCard, American Express, JCB and China UnionPay.