Credit Cards In Afghanistan: A Financial Inclusion Conundrum

Credit cards are available in Afghanistan, although they are not widely used. Data from 2011 to 2021 shows that the average percentage of people aged 15 and over with a credit card was 0.82%, with a maximum of 1.39% in 2014. The latest value from 2021 is 0%. Credit cards available in Afghanistan include Visa and MasterCard, which can be used for online transactions, ATM withdrawals, and purchases at Point of Sale (POS) terminals. UnionPay cards are also accepted at most ATMs in Afghanistan for cash withdrawals in local currency and US dollars.

Credit card usage statistics in Afghanistan

Credit cards are available in Afghanistan, with some banks offering Mastercard and Visa credit cards. However, the usage of credit cards in the country is very low. According to data from TheGlobalEconomy.com, the average percentage of people aged 15 and above who had a credit card in Afghanistan from 2011 to 2021 was only 0.82%. The maximum percentage during this period was 1.39% in 2014, while the latest value from 2021 is 0%. This is in stark contrast to the world average in 2021, which was 22.26% based on 121 countries.

The low credit card usage in Afghanistan could be due to a variety of factors, including the country's status as one of the poorest in the world and the unstable social factors caused by years of conflict. Additionally, cultural and religious factors may also play a role in the low adoption of credit cards in the country. It is worth noting that UnionPay cards, which can be used for cash withdrawals at most ATMs in Afghanistan, are also accepted in the country.

Afghan United Bank offers a MasterCard Premium All-in-One Card that can be used at Automated Teller Machines (ATMs), Point of Sale (POS) terminals, and for online transactions. This card provides added security with a dynamic one-time password sent to the cardholder's registered phone number for online transactions. It also offers free withdrawals from AUB ATMs and free POS transactions worldwide.

Another bank, AIB, offers a Visa Classic Credit Card with defined daily limits of $5,000 for purchases (POS and online) and a per-window limit of $10,000. The card also has a daily cash withdrawal limit of $2,000 through ATMs and a grace period of 10 days for bill payment.

Types of credit cards available in Afghanistan

Afghanistan International Bank (AIB) offers three types of MasterCard-branded credit cards: Titanium, Platinum, and Classic. These cards are designed for worldwide use and are available for the first time in Afghanistan. The bank issues these cards to give holders the option to borrow funds, with interest charged on purchases of goods and services. The borrowing limits are pre-set by the bank according to the individual's credit rating.

The Titanium Credit Card has a credit limit ranging from $500 to $9,999, while the Platinum Credit Card offers higher limits, starting from $10,000 and going up to $30,000. The Classic Credit Card has the lowest credit limit, which starts at $300 and can go up to $3,000. These cards offer various benefits, including password protection, CHIP security, and one-time passwords for online transactions.

Additionally, Bank Alfalah Afghanistan offers Silver and Gold Credit Cards with the Visa logo. UnionPay cards are also accepted at most ATMs in Afghanistan for cash withdrawals, and some ATMs accept UnionPay chip cards.

While credit cards are available in Afghanistan, it is important to note that they are not widely accepted for payment. Local currency shortages are frequent, and it is recommended to check with suppliers before receiving goods and services.

Credit card security in Afghanistan

Credit cards are available in Afghanistan, though they are not widely accepted for payment. Credit cards available in Afghanistan include the Afghanistan International Bank (AIB) Master Classic Credit Card, the MasterCard Titanium, Platinum and Classic credit cards, and the Alfalah VISA Classic & Gold Credit Card.

UnionPay cards are accepted at most ATMs in Afghanistan for cash withdrawals. However, cardholders should be cautious of commission fees, which may include a service fee charged by the issuer and/or a service fee charged by the ATM acquirer in Afghanistan. It is recommended to consult the issuer about possible caps on withdrawal amounts.

Credit card alternatives in Afghanistan

Credit cards are not widely accepted in Afghanistan, and there are frequent shortages of local currency. However, there are some alternatives to credit cards that can be used in the country. Here are some options:

Debit Cards

Major international companies like Visa and Mastercard offer debit cards that can be used in Afghanistan. Local banks such as Bank Alfalah and Afghanistan International Bank (AIB) also provide debit cards that can be used for everyday payments.

Prepaid Cards

Prepaid cards are another option for those seeking an alternative to credit cards in Afghanistan. AIB offers prepaid cards that can be used for online transactions and at ATMs and POS terminals worldwide. Additionally, UnionPay prepaid cards can be used at most ATMs in Afghanistan for cash withdrawals in local currency or US dollars.

Mobile Payments

Mobile payment services, such as My Money by Afghan Wireless, allow users to top up their mobile accounts, send and receive funds, and pay for goods and services. This can be a convenient alternative to credit cards, especially for those with access to mobile devices.

Cash

Given the limited acceptance of credit cards and frequent shortages of local currency, carrying cash can be a practical alternative in Afghanistan. However, it is essential to be cautious and aware of your surroundings when conducting transactions with physical currency.

International Money Transfer Services

Some international money transfer services, such as Ding, continue to operate in Afghanistan. These services enable users to send money to their loved ones in the country. However, it is important to note that payouts will be made in local currency.

Credit card usage by Afghans outside of Afghanistan

Credit cards are not widely accepted in Afghanistan, and there are frequent shortages of local currency. Some ATMs and banks continue to function, but with restrictions on the amount of cash that can be withdrawn.

Some Afghan banks offer credit cards to their customers, such as the Afghan United Bank, which offers a MasterCard Premium All-in-One Card. This card can be used worldwide at ATMs, for Point of Sale (POS) transactions, and online.

Afghans outside of Afghanistan may be able to obtain a credit card from a bank in their country of residence, subject to that bank's terms and conditions.

Frequently asked questions