Meetings are intensifying at the Central Bank of Lebanon with relevant parties from banks and financial institutions in preparation for the complete termination of lollar cards on point-of-sale devices and e-commerce platforms, limiting them to cash withdrawals according to Circular 151. Concurrently, there is preparation to accept all cards issued by local banks in US dollars on any point-of-sale device in Lebanon. If the transaction is approved, it will be settled in "fresh" US dollars rather than lollars. The Central Bank has informed all relevant banks and financial institutions without exception to prepare their institutions and banks technically and program their devices to accept fresh cards as an alternative, pending the circular that will soon be issued by the Central Bank in this regard.
Payment card companies are notifying their customers of the new procedure; in this context, customers of "Ariba" received an email indicating that the Central Bank has informed all banks and financial institutions that payment cards issued in US dollars by local banks in Lebanon, which are processed on point-of-sale devices and e-commerce platforms, will be accepted if they are sourced from "fresh" dollars and will be settled in accounts accordingly. The message also clarified that lollar cards would be completely discontinued on point-of-sale devices, while they will still be accepted for cash withdrawals according to Circular 151 without any modification, and there will be no changes regarding transactions in Lebanese pounds.
According to sources from the Central Bank, the goal of this step is to encourage the use of fresh dollar cards among merchants, positively impacting the economy, noting that there will be a strong emphasis on not increasing the commissions on payment cards in US dollars, ensuring they remain within global standards. It was pointed out that lollar cards will continue to function as usual at ATMs for cash withdrawals at the rate of 8,000 liras for every lollar, while the acceptance of lollar cards at sales outlets will cease, and the use of fresh dollar cards will resume at all points of sale.
The same sources confirmed that "the direction is to re-encourage and facilitate the use of fresh dollar payment cards on point-of-sale devices in Lebanon as a first phase, and Lebanese currency payment cards in a nearby second phase." The Central Bank sources clarified that the primary aim of any decision that might be made regarding the halting of local dollar cards through POS is to encourage the use of fresh dollar cards and cards in Lebanese currency, while also intending to limit the exploitation of lollar cardholders by some merchants.
They revealed that there is a serious study ongoing to promote the use of payment cards in Lebanese currency, for example, in pharmacies, which is crucial for Lebanese individuals holding payment cards who wish to use them easily as they did before the crisis. They noted that there are options to be adopted, including providing pharmacies with the amounts they collect through payment cards as cash through banks or converting it via the Sayrafa platform to enable pharmacists to purchase medicines in hard currency.
