Banks need to Issue New Cards in Indonesia
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With the establishment of the national payment gateway Gerbang Pembayaran Nasional (GPN), banks need to distribute new debit cards that work using the gateway to help their customers reduce inter-bank transaction costs.
The debit cards with GPN’s red eagle logo will be available to the public in January, said BI Governor Agus Martowardojo on Monday, adding that the new cards were accepted by all merchants’ automated teller machines (ATMs) and electronic data capture systems in Indonesia.
However, BI transformation program head Onny Widjanarko said the GPN cards could not to be used for international transactions such as withdrawing money from foreign ATMs or processing payments in international stores.
Onny said old debit cards could still be used, but interbank transactions will result in higher costs.
Agus said banks charged a 2 to 3 percent fee if customers used other bank’s debit cards, but with the new cards the rate would only be about 1 percent.
He said currently there were 140 kinds of debit cards in Indonesia and 90 percent bear foreign switching network logos.
Meanwhile, transactions using debit cards in Indonesia reached Rp 17 trillion (US$1.26 billion) per day.
Questions & Answers
Q.What is the primary benefit for customers using the new GPN debit cards?
What is the primary benefit for customers using the new GPN debit cards?
Customers using the new GPN debit cards will benefit from reduced inter-bank transaction costs. The BI Governor stated that the transaction rate for these cards would be around 1 percent, compared to the 2 to 3 percent fee on older cards.
Q.Will existing debit cards become unusable once the GPN cards are introduced?
Will existing debit cards become unusable once the GPN cards are introduced?
No, existing debit cards will still be usable. However, interbank transactions conducted with old debit cards will incur higher costs than those processed using the new GPN cards, as stated by Onny Widjanarko.
Q.Can the new GPN debit cards be used for transactions outside Indonesia?
Can the new GPN debit cards be used for transactions outside Indonesia?
The new GPN debit cards cannot be used for international transactions. This includes withdrawing money from foreign ATMs or processing payments in international stores, as confirmed by BI transformation program head Onny Widjanarko.
Q.When are the new debit cards with the GPN logo expected to become available to the public?
When are the new debit cards with the GPN logo expected to become available to the public?
The new debit cards featuring GPN’s red eagle logo are scheduled to be available to the public from January. This information was provided by BI Governor Agus Martowardojo on Monday, following the establishment of the national payment gateway.
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