PrivatBank introduces new restrictions for customers

PrivatBank has introduced restrictions for its clients. Now, sole proprietors who have a "key to the account" card can accept payments of no more than UAH 30 thousand per month.

What has changed?

When opening a current account with PrivatBank, each client is issued a "key to the account" card. The card looks like a regular credit card and has a unique number; it is intended for withdrawing cash from the account, but many entrepreneurs use it to accept payments from their customers. Since the card is linked to an account, all payments received on it are automatically transferred to the current account.
On March 12, PrivatBank made changes to the procedure for using the key card by an internal resolution (without notifying its customers), citing financial monitoring requirements. Entrepreneurs can continue to use the "key to the account" card, but with certain restrictions: the amount of income per month on the card is limited to UAH 30 thousand. This amount can be received in one lump sum or in installments, it does not matter. If, for example, the client pays UAH 30,001, the payment will be returned to the sender. If a sole proprietor receives three payments of 10 thousand hryvnias during a month, the next payment will not be processed.

The 30 thousand limit applies when receiving payments from other banks. That is, if your customer is a PrivatBank client and pays for the "key to the account" card in the amount of more than 30 thousand, such a payment will be accepted, since your account details in IBAN format will be automatically pulled up when creating a payment.

What does PrivatBank say?

Despite the fact that PrivatBank did not publicize this information, many users encountered this problem and started asking questions to the bank's employees. In its responses, PrivatBank refers to financial monitoring requirements and internal rules.

Bank representatives state that according to the NBU, all payments to entrepreneurs must meet certain requirements, namely that the purpose of the payment must clearly indicate what the client is paying for and on what basis. In the case of card payments, this requirement is not met.

Representatives of the bank emphasized that this restriction will not apply to cards of individuals.

How to get around the restrictions?

Representatives of PrivatBank advise that when paying with a key card, you indicate the correct purpose of the payment: what the payment is for and on what basis, so that this payment will not be included in the 30 thousand limit.

Also, to avoid problems with accepting payments, you should send your customers the details of their current account in IBAN format, not 16 digits of the card. If you are worried that your customers will not be able to pay to a current account because it is too complicated for them, then connect the "Payments of the population" service from PrivatBank. The point of this service is that you can send customers a link to payment with the details already filled in, the customer needs to enter their data, write the purpose of payment and the amount of payment.

If it is critical for you to accept card payments, then you can open several current accounts in PrivatBank and get a key card for each account, then the payment limit per month will increase by as much as you open accounts. For example, three accounts will allow you to accept 90,000 hryvnias per month instead of 30,000.
Another option is to change the servicing bank.