Scotiabank lowers US credit card limits, restricts overseas VISA debit card usage

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Scotiabank, Independence Square, Port of Spain. FILE PHOTO -

Scotiabank says it will reduce the US spending limit on its credit cards and restrict the usage of its Visa Debit card for overseas transactions as it navigates the forex crunch facing TT.

In an e-mail sent to some customers on October 30, the company said, “As we continue to navigate the Foreign Exchange considerations prevailing within our country, please be advised that effective December 1, 2024, the maximum US dollar spending limit per calendar month on your Scotiabank credit card will be reduced.”

It explained holders of its Aero Mastercard Black will be given a US $5,000 limit while all other personal cards will have a US $2,000 limit.

It added, “This change includes all transactions conducted outside of TT along with all international online transactions.”

The bank said all local transactions conducted online or at merchants in TT dollars remain unaffected.

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Scotiacard Visa Debit users were also informed of changes which will prevent them from using the card overseas.

Citing the same foreign exchange considerations, the bank said, “We are writing to advise that effective December 1, 2024, the option to use your Scotiacard Visa Debit for overseas point of sale (POS) transactions and ATM withdrawals will no longer be available.

“We recognise that the situation has been challenging we thank you for your continued understanding throughout these adjustments.”

The bank, in its e-mail to credit-card users said, “Further details will be sent to some credit cardholders advising of other adjustments.”

The message to debit card users provided no further information regarding solutions for those who plan to travel but do not have a credit card.

Newsday contacted Scotiabank’s public and corporate affairs manager Cindy Mohammed but got an automated response as she was out of office until next week.

The person to be contacted during her absence, Yanique Forbes-Patrick, a member of the public affairs and communications for the English Caribbean asked to be given until November 1 to respond.

The bank, up till press time, had also not posted anything on social media or on its website to notify all customers.

This reporter called Scotiabank’s help line to verify the message.

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The customer service representative (CSR) confirmed it was true and, after it was pointed out that some customers had not yet received the message, said, “Not everyone will get the message at the same time.”

The CSR added, “Some customers will get it now and others will get it afterwards.”

The limit comes as other banks struggle to access US currency.

In October 2023, Finance Minister Colm Imbert admitted there was a shortage of foreign exchange and attributed the problem to increasing demand.

Speaking at the TT Manufacturers’ Association (TTMA) Post-Budget Discussion at the Hyatt Regency hotel on October 3, 2023, Imbert said, “There is an appetite to buy foreign goods, there is a demand for foreign exchange, and you have shortages.”

He added he was seeking a solution to the problem.

“I met with the TT Chamber of Commerce and Industry yesterday and I asked them to give me some ideas and suggestions on how we deal with the forex problem we have. I met with the commercial banks, and I asked them for some ideas. I have been given some excellent proposals and I have also asked the EximBank to give me some ideas as well.”

He suggested he was nearing a solution but, more than one year later, has not yet revealed it.

Scotiabank is now the third bank in just over a year to lower their limits, with all citing the difficulty in acquiring foreign exchange.

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In a credit card notice posted to its website dated July 15, RBC Royal Bank said it planned to reduce the foreign currency spending limit for its credit card customers effective September 1.

The total monthly limit was reduced from the equivalent of TT $51,000 (US $7,500) to TT $41,000 (US $6,000) or the maximum of the account’s credit limit, whichever is less.

In the bank's notice to its customers, RBC said, "Given current foreign currency supply constraints, we are striving to balance the requirements of our credit card clients with the availability of foreign exchange supplies.”

In September 2023, Republic Bank, in a notice sent to customers, advised of changes to come into effect effective September 21, 2023.

The bank said the US-dollar limit on its credit cards will be reduced from US$10,000 to US$5,000 per cycle.