BB allows int'l credit cards

The central bank has allowed use of international credit cards for online purchase of goods and services.

Such cards holders can now make online payment not exceeding $100 or its equivalent for a single transaction, according to a Bangladesh Bank order.

Online payments for such purchases shall be limited to the available unused annual travel quotas of the international credit card holders plus an additional amount not exceeding $1,000 annually, the order added.

Bangladesh Bank Governor Atiur Rahman revealed the decision while talking to The Daily Star Thursday.

"We have done this particularly for the young generation who are so much digital. They will benefit the most."

In addition, professionals like journalists and online activists will also benefit from the move, he added.

"This is one step forward towards digitalisation of financial transactions," said Atiur.

Over the next three months, the central bank will observe the activities and users' reaction, and will do the needful on that basis, he added.

Earlier in July 2011, the central bank partly freed up foreign exchange transactions by approving online transfer of funds for academic purposes by credit card.

Later in December 2012, it allowed international credit card holders for travel related payments abroad, online payment of fees, online hotel booking etc.

"It will be the responsibility of ICC [international credit card) holders using the online purchase option to fulfil tax/duty payment obligations if any; they should also undertake such transactions with due caution against risks being defrauded by unreliable unscrupulous vendors," said the BB order.