Nigeria - the land without credit cards

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Posted: Wed Jan 10, 2007 2:03 am

I've been delaying a Lagos lad by claiming to dislike Western Union, and have been suggesting alternative payment methods. Recently I offered to pay my fees directly by credit card, and got this goofy response:

Quote:

from Global trust Securities
date Jan 9, 2007 9:42 AM
subject Re: Payment required.

William,You have to understand that this is a third world where credit cards do noe exsist.You will have to send the $1500 through western with the name I gave you.

Best Regards,
Kim Breton.

I wonder if they accept Pony Express...

Posted: Wed Jan 10, 2007 2:12 am

In Nigeria credit cards are virtually useless except at major hotels in Lagos and Abuja. Now I am not 100% sure how accurate this is, but I have been told that there is only one ATM in the country at the Mega Plaza (Idowu Martins Street), and you need a Nigerian bank card to use it.

Lagos does have over 50 banks, only the FBN does give cash advances from mastercard.

Posted: Wed Jan 10, 2007 3:26 am

We were scammed on a ski trip by some hoteliers half way up an Austrian Alp who used this excuse not to accept any kind of credit card. When questioned further they said it was because Austria "isn't part of the EU".

Posted: Wed Jan 10, 2007 4:21 am

Actually I think they have more credit card machines/atms than that, especially for a country the size and wealth of Nigeria.

I just got back from Mali, which is much poorer, and a couple years ago, there was only 1 ATM in the country, now there are about 50 in the Capitol city of Bamako.

Barclays Bank is pretty common in Nigeria, so I am pretty sure there will be ATMs.

But if you ever go to west Africa, keep in mind Mastercard is worthless, when you do find a place that takes cards, or ATM.

I guess you could get a lad on a pretty good safari, having him on a quest for a mastercard atm in west africa.

Posted: Wed Jan 10, 2007 4:35 am

firepilot wrote:

Actually I think they have more credit card machines/atms than that, especially for a country the size and wealth of Nigeria.

Hence the line I wasn't sure if what I was told was accurate. I know it doesn't seem right, but I wouldn't be surprised. The was 2002 information. They may have more.

419Eater is my life Joined: 11 Jul 2004 Posts: 385

I remember reading in the Sun News Online that the Central Bank of Nigeria is going to offer a credit card, but that the problem is that since not every Nigerian has a National Identity Card, the bank won't be able to come after people that default on payments if they don't know their real names or addresses.

M-m-max

Posted: Wed Jan 10, 2007 8:19 am

I have friends who work on contract in Nigeria and apart from them saying that acceptability of CCs virtually nil, they are frightened to use them for online purchases, for example to buy airline tickets, as they say the ISPs can capture and misuse the information.

I would not have thought this possible, but that is apparently the current rumour. Does anyone know, technically, if there is any foundation to this?

Posted: Wed Jan 10, 2007 8:28 am

Quote:

When questioned further they said it was because Austria "isn't part of the EU".

When was that? Cause Austria is a member of the EU for ten years now Wink

But you are right, credit cards are really not that widely accepted here than for example in the US. But it is increasing more and more. But usually there are loads of ATMs (Bankomat called in German) around where you can get your cash Smile

But I am sure, by now every bigger hotel accepts credit cards Wink

Posted: Wed Jan 10, 2007 10:43 am

^^^ It would have been about 12 years ago so yes, things have probably changed.

There was an ATM in the nearest village some 5kms down the mountain in the local village. And guess what, the hotel owner's brother happened to own the local taxi company and spent many happy hours driving pissed-off skiiers to and from said ATM so they could cash up. Naturally he only accepted cash too. Grrrr.

Posted: Wed Jan 10, 2007 10:54 am

^^^^ lolol....well....some of the "mountain guys" have their very special way on how to rip off..ehh...mean....service tourists. But I have to say, that these are really exceptions Smile

And in the last 12 years things have most certainly changed, exspecially when it comes to the acceptance of credit cards. On the other side, you wouldn�t expect every shed in the mountains to have their own ATM, do you? Wink

(even though at many if not most of them you can pay with your ATM card now, since they are connected)

Posted: Wed Jan 10, 2007 12:11 pm

For our non-European members: Here is a picture of an Austrian credit card (Steiermark) which might explain why this payment method isn't as widely accepted as in more developed regions of the European continent.

Posted: Wed Jan 10, 2007 12:14 pm

falnsb wrote:

... acceptability of CCs virtually nil ...

A member who is very familiar with day to day life in Nigeria posted here about a year ago that the Nigerian economy is a cash economy. No cash, no deal. The rate of forgery is so high that only cold hard cash is accepted.

This may be different when dealing with foreigners or the rich, but the economy of the street is cash-only.

Edit for Don:

1. Im schwarzen Walfisch zu Askalon,
Da trank ein Mann drei Tag',
|: Bis da� er steif wie ein Besenstiel
Am Marmortische lag.

2. Im schwarzen Walfisch zu Askalon,
Da sprach der Wirt: "Halt an!
|: Der trinkt von meinem Dattelsaft
Mehr als er zahlen kann."

3. Im schwarzen Walfisch zu Askalon,
Da bracht' der Kellner Schar
|: In Keilschrift auf sechs Ziegelstein'
Dem Gast die Rechnung dar.

4. Im schwarzen Walfisch zu Askalon,
Da sprach der Gast: "O weh!
|: Mein bares Geld ging alles drauf
Im Lamm zu Niniveh!"

5. Im schwarzen Walfisch zu Askalon,
Da schlug die Uhr halb vier,
|: Da warf der Hausknecht aus Nubierland
Den Fremden vor die T�r.

6. Im schwarzen Walfisch zu Askalon,
Da schlug die Uhr halb neun,
|: Da kam der rausgeschmiss'ne Gast
Zur Hintert�r herein.

7. Im Schwarzen Walfisch zu Askalon,
Da trank er wacker fort,
|: und wenn er nicht gestorben w�r',
Tr�nk' er noch immer dort.

8. Im schwarzen Walfisch zu Askalon
Wird kein Prophet geehrt,
|: Und wer vergn�gt dort leben will,
Zahlt bar, was er verzehrt.

Posted: Wed Jan 10, 2007 12:26 pm

^^^^ Love that song, KD and sang it many many times at my fraternity.... Very Happy

@Don: You are right, cause most of our tourists can�t handle that much written information at once. The italian tourists especially don�t like this credit cards, cause then they don�t have their hands free for talking Wink

Posted: Wed Jan 10, 2007 1:06 pm

If anyone is interested, I have the answer to my above question, having spoken to an expert in the field. Apparently the technical difficulties and expense involved for the ISP in capturing the data to/from an encrypted website are so great that the risk is virtually nil, far lower than when, for example, you pay for a meal in a restaurant.

*** BANNED *** Joined: 18 Jul 2004 Posts: 2049

Don wrote:

. . . . . Here is a picture of an Austrian credit card (Steiermark) which might explain why this payment method isn't as widely accepted as in more developed regions of the European continent.

Clever Austrians - they know how to write in cuneiform.

After my first trip to Austria I made a point of memorizing this very important phrase in case of emergency:

Quote:

Schnell wo ist das n�chste Krankenhaus? Meine penis wurde durch Blitz geschlagen!

Posted: Wed Jan 10, 2007 2:46 pm

kleindoofy wrote:

The rate of forgery is so high that only cold hard cash is accepted.

Counterfeiting money is not a problem there? That would truly surprise me. They must have some really good security measures built in?

Posted: Wed Jan 10, 2007 3:22 pm

^^^^ I'm guessing that Nigerian money is printed outside of Nigeria and it's pretty elaborate in design and color.

Color printing in Nigeria, and in West Africa in general, as I have seen it, is a joke. I very much doubt any printing shop in Nigeria would be able to make anything even closely related to legit Naira.

And who else would bother doing it? Euros and USD are counterfeited all over the world. Naira? I doubt it.

Posted: Thu Jan 11, 2007 3:48 pm

The only country I've ever been to where credit cards weren't widely accepted was Japan.

I was there six years ago, and I had to pay for almost everything with cash. I bought a round trip shinkansen ticket from Tokyo to Kyoto. The total was just under 30,000JPY (300USD). I handed the guy my credit card, and he looked at me like I was out of my mind.

Maybe things have changed in the past six years.

Posted: Thu Jan 11, 2007 4:41 pm

I was in Japan about 4 years ago and found that most places accepted credit cards. Certainly I was able to pay hotel bills and for Shinkansen tickets between Tokyo and Osaka by CC.

I don't remember about restaurants but I think I paid for some meals by CC too. It is interesting to look at the reason CC acceptance may be low, it's quite simply that it is a very safe society with extremely low levels of street crime and people feel safe carrying large sums of cash.

Posted: Thu Jan 11, 2007 5:01 pm

Well, for all those who've been wondering about ATMs in Nigeria. Visa doesn't list a single one here, nor does Mastercard here. On Nairaland there was an interesting discussion about ATMs in Nigeria a while ago...

Not quite a Newb Joined: 21 Dec 2006 Posts: 40

@kleindoofy

Actually Nigeria is reasonably up to date in colour printing technology, although they perhaps lack some of the skill sets to capitalise on it. Many of the 2nd hand printing presses leaving the UK are bound for Nigeria and other Western Africa countries, many under 10 years old. Not a great deal has changed in conventional litho printing in this time so they are fairly up to date. They still obviously lag behind the US & Europe in digital printing technology though.

Posted: Thu Jan 11, 2007 8:44 pm

^^^ As for machines being sold 2nd hand to Africa, I'm quite aware of that because I recently sold my entire darkroom (Fuji 68mm litho film developer, Fuji Color Art proof system, Thiemer contact copier, 34mm Varityper laser image processor etc.) to a guy who said he was selling it all to Africa.

Still, I judge by the products, not by the machines. Wink

Posted: Thu Jan 11, 2007 9:02 pm

Nigerian money, as well as about thirty other currencies were once printed about two miles from where I grew up. My Dad would bring home unspent money from Lower Slobovia and the only thing I could read was the amount and the name of the printing company. I remember watching huge shipments go out unguarded. As of December its all in house.

http://www.tribune.com.ng/12092006/news/news7.html

The Japanese do use credit cards but are using the cell phone instead for train fare and vending machines. They call it a Wallet.

http://www.govtech.net/digitalcommunities/story.php?id=99325

Edit- Must bait safe. Removed some telling personal information.

Not quite a Newb Joined: 21 Dec 2006 Posts: 40

@ kleindoofy.
Agreed. I've just sold an 8 year old B1 6 colour Heidelberg Speedmaster bound for Nigeria. RCI, Vario dampening, auto blanket wash etc etc.
(Not mine, my companies I hasten to add, I'm just a mere employee)

They have the technology but can they use it? Laughing

Posted: Thu Jan 11, 2007 9:51 pm

In Taiwan, only the major retailers, restaurants, hotels accept credit cards. The smaller shops accept only cash. I believe they feel it's a burden to register and pay the CC service fees. In addition, the majority of the people there use cash.

If everyone uses cash, what's the point of paying for credit card service?

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