Qi Mastercard purchases abroad stopped since Sept. 19, company source says

BAGHDAD — Cardholders with Qi Mastercard cards have been unable to make purchases abroad since Sept. 19 because of system upgrades, a source at the company told 964media, confirming at least part of the complaint that Iraqi cards were failing overseas. Qi’s Visa cards continue to work outside Iraq.

“Development work is currently underway at the company, and because these upgrades took place directly on the system, there has been some disruption for all Qi Mastercard users,” said the source, who asked not to be named. “They were working normally, and users could make purchases abroad before Sept. 19, but purchases have now stopped, while Visa cards issued by Qi continue to work normally outside Iraq.” Withdrawals, payments and transfers inside Iraq are working on both, including personal, savings, employee, pension, business and gaming cards. No date was given for restoring the service.

Qi is one of Iraq’s main card issuers, widely used to pay public salaries, pensions and welfare benefits. Qi Visa cards carry a monthly limit of 6 million dinars on purchases abroad, about $4,500 at the official rate at which card spending overseas is settled. International ATM withdrawals are capped at 500,000 dinars a month for most cardholders, about $380, split into withdrawals of 200,000, 200,000 and 100,000 dinars, and at 650,000 dinars for employee and pension cards. The source said Visa cards may also fail abroad if the limit has been reached, international use has not been enabled, the card has not been activated or the balance is insufficient.

The Trade Bank of Iraq denied on Tuesday that its own cards had been suspended, after former lawmaker Majid Shankali said Iraqis abroad, including students, retirees and travellers, had been unable to use cards issued by Iraqi banks for several days.

The disruption began on the day the Central Bank said its reserves were sufficient to settle card transactions, finance trade and supply travellers with dollars at the official rate, amid a widening gap between the official rate of 1,320 dinars to the dollar and a parallel market that reached about 1,602 at the weekend. Using a card abroad is currently the cheapest way for Iraqis to buy dollars.