The Central Bank of The Bahamas, Clearing Banks Association, credit unions, digital wallet providers and others in the financial services industry may be competitors on many levels but there is one thing we all agree on – The age of digital payment solutions is here.
Payment systems are a vital part of our daily lives; they allow people and businesses to move money between each other often in exchange for goods and services. When we say digital payment, we refer to any transaction that is electronic in nature. These options include
For decades, how we paid and got paid changed very little. Fast forward to today and we have an array of payment options, from traditional cash to modern contactless card payments. The digital age has revolutionized the way we pay, the way we do business, and the way we interact with each other.
Payment systems have changed and evolved substantially in a relatively short period of time. Once only available on a desktop computer with slow dial-up internet, banking today can be conducted from any smart device with instant response. Not only are we able to use any device, laptop, cell phone, or tablet, but we can handle our financial obligations or receive funds wherever we are, from just about anywhere in the world. Today, we have more options than ever to pay or get paid in ways that are faster, safer, greener.
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Whilst we are the economic regulator of payment systems, other authorities or organisations may be better placed to answer certain queries about payments and the payments industry as a whole. Please note, we are unable to intervene in disputes with retailers or other suppliers or get money back on behalf of customers. If you wish to dispute a payment (e.g. to request a refund or if you think you have paid someone you did not intend to), you should contact the Payment Service Provider itself (e.g. the bank or card issuer) in the first instance. If you think you have been scammed, then you may also wish to contact Action Fraud.
If you wish to complain about the conduct of the firm, including if the firm has rejected your request for a refund or you are unsatisfied by their attempts to recover your funds, then you should follow their formal complaints process. If, after doing this, you are still dissatisfied with the way your complaint has been handled by the firm then you can complain to the Financial Ombudsman Service. If you wish to complain about the conduct of a regulated firm, you may also wish to contact the FCA, which is the conduct regulator for Payment Service Providers in the UK. Finally, there are some circumstances regarding complaints about a payment systems operator (e.g. Visa, Mastercard, Pay.UK) in which we are the relevant authority. You can read more about this in ‘I have a complaint, what should I do?’.
Payments system modernization refers to the process of upgrading the infrastructure for payments in The Bahamas, to allow for convenient, efficient, fast transfer of funds through electronic or digital channels. It covers changes in Bahamian laws to permit new forms of payments and to allow the licensing and supervision of new providers of payments services.
How we pay for goods and services must continue to evolve, to become inclusive, easier, faster and safer. A modern digital payment systems does just that.
A digital payment transaction is any payment for goods or services by electronic means, rather than by cash or cheque. Some examples of digital payments methods include
Digital payments offers more immediate access to payment funds, and eliminates the time taken to cash or deposit checks, as well as any associated fees. Increased security of transactions, and easier recourse to recover lost or stolen funds. They are also better record keeping for accounting and management of funds.
Through practices which safeguard against fraud and theft, and which allow individuals to regularly monitor their accounts, digital payments can be more secure than cash and cheques. In instances of theft, digital transaction are also more traceable, and more readily allow financial institutions to return lost funds.
There are many safe practices to reduce your risk of fraud. All financial institutions offer sound advice on this topic. They include keeping your account password and PIN strictly private, being on guard against scams that attempt to steal your password and personal information, keeping your devices locked, protecting your devices against viruses and malicious software (like ransomware), and avoid using untrusted Wi-Fi services to conduct financial transactions.
Simply put, online banking is banking carried out with the use of mobile devices or computers, rather than accessing banking services via the teller window or the ATM. Mobile banking includes accessing your bank account over the internet on your computer, tablet or mobile phone to pay bills, transfer funds, open an account, apply for a loan, or any other service you would traditionally visit the a bank to complete. If you are using a smart phone or tablet, your financial institutions may offer a special app for you to do secure transactions.
Yes. Fees for online banking can vary across institutions, depending on the type of transactions being done. Some services may also be discounted for senior citizens. Please consult your individual institution for their fee structure.
As long as you have an existing bank account, you can apply for online banking. The process will vary from institution to institution. Your bank or credit union will provide you with detailed instructions.
No. Online banking can be done using the secure browsers on your computer, mobile phone or tablets. Your commercial banks may also have a special app that you can use on your mobile device.
Yes. All banks provide bill paying services for major utilities companies. Institutions also provide direct bill payments for many other companies. Also, you can use your online access to make wire transfers (third part transfers) to any business or individual that has a local account at any bank in The Bahamas.
Online banking uses secure, encrypted channels to send messages between your computer and your bank’s platform or computer system. Secured connections will always display a locked padlock icon next to the displayed website address in your web browsers. The customer confidentiality is the same for online banking as in-branch banking.
For anyone to access your account, they would need to know the password or PIN that you use to log on to your account. By following secure practices, you can minimize the risk of anyone accessing your password. Your passwords are personal to you only, and should never be shared with others. You should also choose a password that is difficult for other persons to guess. As an added layer of security, your financial institution may also offer two factor authentication or allow you to create a secondary password or PIN that changes each time you log onto your account, usually delivered by SMS text, email, or special code provided by an app that is kept on your phone. Without your personal password and secondary PIN, your bank account cannot be accessed if you were to lose your phone.
Yes. You do need internet access to use online banking.
It is best practice to log in and monitor your account on a frequently basis. You should immediately query your financial institution for any transaction that you do not recognise.
An EFT is a digital transfer of money from one bank account to another, a payment completed via credit or debit card or through a digital wallet. Neither cash nor and physical cheques are used in the process.
ACH direct deposit, ACH direct payment, & ACH direct debits.
EFTs are a very safe and convenient way to send money and receive payments.
The ACH or automated clearing house sends payments between local banks in The Bahamas. Transfers must be $50,000 or less. These include instructors for direct deposits of salaries and other payments bill payments via wire transfers, settlement of cheques, SandDollar digital wallet deposits.
ACH transfers can take from less than a day to up to 3 working days to complete. The speed can vary depending on your individual institution.
There are several differences between ACH and wire transfers. First, while ACH transactions are processed through an interbank system or a clearing house for verification, wire transfers go directly and electronically from one bank account to another. Further, ACH transfers are normally handled in batches and can be slower than wire transfers—which are individual requests and is faster. Wire transfer is typically used for high-value transactions.
Yes. You will need a bank account or a digital wallet.
Transfers between accounts at different banks go through the ACH or the RTGS systems. Funds can also be wired or transferred between different accounts at the same bank. The service charges will vary across institutions. (Please consult your individual institution for more information.)
Transfers between banks or inter-bank transfers can take anywhere from same day to up to 3 working days. (Individual institutions may vary)
It is always a good practice to verify the account to account to which you are sending funds by wiring a very small amount first, and to receive a confirmation from the recipient. However, if you make an error consult your bank immediately. Your institution will have procedures in place to investigate and correct erroneous transfers.
If you transfer the wrong amount of money, but it was to the correct recipient, the most direct remedy is to ask the recipient to return the funds. Consult your branch immediately.
A debit card is linked directly to a savings or chequing account. It is issued by your bank or financial institution and linked to one of the internationally recognised brands such as Visa or MasterCard. Local debit cards can be used to make payments, and to access ATM services.
When payments are made these are deducted from your account.
A debt only allows you spend up to what is available in deposit account or what is pre-paid on the debit card.
A credit card is not linked to a deposit account. It is based on a line of credit provided by the financial institution. When used for payments the funds are transferred by your financial institution to the recipient. You, the payer, as the credit cardholder are obligated to repay the bank. You must also pay interest to the financial institutions on any outstanding credit card balances.
Yes. Fees for having a debit card will vary from institution to institution.
Yes. ATM fees vary from institutions to institution.
Are my debit card transactions protected?
Debit cards which have an international credit card brand attached to them can also be used internationally. Safety risk can always be minimised if you follow the advice given by your bank. Moreover, the kinds of risk to which you are exposed could be less than using cash. Some losses are not recoverable with cash, whereas your digital records allow your bank to do investigations that can help you recover from debit card fraud.
Fees will vary from institution. However, the most common cost of using your card abroad is the foreign exchange conversion fee. It includes the stamp tax, the forex fees charged on each transaction and the VAT on the forex fees. Forex fees are normally a set percentage of the transaction value.
Refunds or reversal of charges, will have to follow the process that is established by your financial institution. In some instances however, this includes making direct queries with the merchant with whom you transacted. “Stop payments” are not issued on card transactions.
Transaction may be monitored on your account statement. In addition your institution might allow you to receive email or text notification each time a transaction is done with your card.
You should immediately raise all queries concerning your account with your financial institution.
Lost debit cards should be immediately reported to your financial institution.
What is a “chip card”?
Your financial institutions will provide secure means for you to create a new pin for your card. For this assistance, you should communicate with them through contacts and channels they have provided.
Fraud would be any unauthorised use of your debit card to make payments or withdraw funds.
For fraud to occur, the perpetrator would need to gain direct access to your card or account information.
If you know or suspect that your card has been used fraudulently, you should immediately contact your financial institution. They may take a number of immediate steps, including freezing or cancelling your card. Afterwards a process of investigation should begin to recover lost funds. In the event of fraud, your financial institution may also issue you a new card, with a different account number.
A credit card is an instrument issued by bank or financial institution (the issuer) that allows you make payments or withdraw cash, which are paid on your behalf up front by the issuer. In turn you are obligated to repay your issuing bank later.
Credit cards can be used to make payments to merchants, in person, at the point of sale or on online e-commerce sites. Each payment request has to be authorised by your card’s issue, with the branded international credit card networks providing the secure channels to relay authorisation. To complete payments, you as card holder would also have to provide information to the merchant such as a PIN, CVV code or signature. Any purchase made will only be authorised up to the credit limit on your card.
There is a grace period, in which your bank will allow you to repay your credit balances in full, without any interest charges. If you miss this period and are only able to make partial repayment, interest charges will be added to your remaining balance each month. If you pay less than the minimum amount indicated on your statement, within the date that is due, your bank may also charge late payment fees.
A credit card is substitute for cash and for using your own funds. It provides a layer of record keeping and a means of recourse if there are disputes with a merchant, or outright cases of fraud. However, it does represent a loan on which interest is charged. As a line of credit, it can help you make emergency payments, if you are short on funds. However, you should always follow a disciplined approach, and make regular payments against your credit card balances.
Financial institutions have been very innovative with credit card products. The most common distinction is based on the credit card limit. Most persons are familiar with “regular” and “Gold” cards. Gold cards have higher credit limits in the thousands of dollars. Regular cards can start off at less than $1,000 and commonly are significantly less than $10,000 on the upper end. Annual fees may vary according to the type of card, as well as the reward perks (earning airline miles, or getting cash back). In the other mix locally, credit unions also offer card to their members.
Card rewards can take a variety of form. The common formula is that rewards are earned in direct proportion to each dollar of purchases. For example banks might provide a cashback refund of a few cents for each dollar spent, or some fraction of airline miles for each dollar of spending. If you choose a rewards program, there might also be an annual membership fee for the program.
Choose your card based on affordability, and intended usage. A good approach is to start off with a card with a low credit limit, and to consider adding rewards and other options ad you get more experience.
Each financial institution will have an applications process for credit card. Once you make a direct enquiry, and complete the application your bank will decide if you qualify for the card, and what credit limit should apply.
The card limit is the maximum amount of unpaid balances that you can carry on your account. The difference between your actual balance and the credit limit, is the maximum amount of purchases that car issuer will allow you to make. By making payments on your account, you can restore available credit for future transactions.
You can follow the process disclosed by your financial institution to apply for an increase in your credit limit.
Your bank or card issuer will disclose the annual rate of interest on your credit card. Each month interest will be charged based on the outstanding balance on your card, at the monthly rate of interest. The monthly interest rate is usually the annual rate divided by 12.
You can request a lower interest rate card from your bank. However, your bank might only charge a lower rate for cards that are considered a “Gold” or premium. You can also ask about the option of obtaining cash secured card, which would require you to maintain a fixed deposit, equal to at least the credit limit.
Interest is only charged on unpaid balances. To avoid interest payment, you should pay your monthly bill in full before each due date.
Sign up for online banking, and email and text alerts. Banks allow you to monitor your credit statement statements online, as frequently as you might choose. In addition, depending on your options, you can receive text and email alert each time a purchase or charge is made using your card.
Yes. Your credit cards can be used for international transactions. The transaction can be done safely and secure, one you follow the security guidelines given by your institution. At the same time you may have the option to restrict the use of your card abroad, to limit the chances of fraud. Your financial institution will instruct you on how to manage such features, if they are available
Like debit cards, international credit card usage incur foreign exchange fees and VAT charges on fees. Your bank can provide you with its fee schedule for such transactions.
Stop payments are not possible with card transactions. However, you can take other direct steps with your financial institutions to obtain a reversal if there is fraud. Merchants are also able to issue refunds from payments, if there are errors with the transaction, or if it agrees with their cancellation or return policy for purchases.
Credit card statements are issued monthly by your bank or financial institution. They should provide a full listing of all transactions, by date, on your account sine your last statement was issued. The statement will show, among other things, how much you owe (outstanding balance), any payments made since the last statement, interest and fees charged on the account, and new purchases or refunds on your card. The statement will also indicate the minimum amount that you must pay, which is always an amount greater than any new interest charges on the account.
You should immediately query the charge with you bank or financial institution.
Your financial institution will have various options to pay your bill. The most convenient option is to pay your bill though the online banking portal. However banks also have a range of convenient transactions including bill payment that can be done at smart ATMs. Your bank may also allow you to pay your bill over the counter with cash, or by cheque.
The grace period is the time given to allow to pay off credit card balance in full, without incurring any interest charges.
Cash withdrawals are considered “cash advances”. You should consult your banks for any fees that may apply. Fees might also apply for ATM services. Cash advances however, may not have a grace period for interest charges.
You should immediately inform your issuing bank or financial institution. This will protect your account for further charges or use, until a new card is re-issued.
You will have to directly request that your financial institution cancel the card. This will prevent any new charges from being made against the card.
Credit card fraud, is any unauthorised use of your card. You should monitor your account regularly to detect suspicious activity.
You should immediately inform your issuing bank or financial institution. This will protect your account from further charges or use, and allow proper investigations to take place to reverse the transactions.
A digital wallet is electronically stored funds in a secured account that can be used to make or receive payments from other wallets or deposit accounts. A financial transactions app, usually on a mobile phone or tablet, can be used to operate the wallet. While the device allows you to access the funds in wallet, the funds are usually kept on a secured central computer, not on the mobile device.
A digital wallet securely stores your payment information and passwords. It allows one to make electronic transactions with another individual or business to purchase goods and services or to transfer funds.
To create a digital wallet, you will have to install the app from digital wallet provider and complete the activation. The SandDollar app provided by Central Bank also allows you to complete the setup of your wallet, and select from one of the digital wallet providers as your preferred financial institution.
A digital wallet provides the benefits of a physical wallet, without having to handle physical cash. However it also offers more safety and convenience. You can transact with select businesses which have non-cash means of payments, as well as transfer funds to and from bank accounts. Digital wallets such as SandDolllar, also allow you to better track your spending. If you lose your phone, your funds would not also be lost.
A mobile wallet allows you to send and receive payments instantly. You must use a password to secure your wallet, and you must use a PIN each time you instruct a payments. For convenience, wallets allow you to send and receive funds by scanning a QR code, or by texting the funds to alias or telephone number of the recipient. The range of features and means by which funds can be transferred will vary across financial institutions, and may include additional depending on the sophistication of phone and the payments terminal used by businesses.
All mobile wallets can send and receive SandDollars. Mobile wallets can be used at any business that accepts SandDollars, or businesses that accept the “tokens” issued by individual payment services providers (funds denominated different from SandDollars). Mobile wallets can also send and receive funds from bank accounts.
To set up a mobile wallet, you will need a smart phone or tablet, with a camera, operating either with Android or iOS software. The mobile applications, including SandDollar can be downloaded from the Apple App or Google Play store.
Yes. Wallets used encryption to send and receive transactions. They also require the users to maintain a password on their accounts and to use either a PIN or biometrics (facial recognition, or finger print scans) to complete each transaction.
If your device is lost or changes, your payments provider has a set procedure for you to connect to your wallet on a new device.
Yes. Common ways in which you can send money to another wallet includes, scanning a QR code that is displayed on the other wallet device, texting the funds to the alias or wallet address of the account, or sending the funds trough the ACH to the wallet address.
Your alias is a unique easy to remember name that you create when you setup your wallet or SandDollar account. It will look similar to an email or social media handle (for example MIKE87@SandDollar.bs or MYPSP@SandDollar.bs+12421234567).For some wallet providers this is generated automatically as you mobile phone number.
Mobile wallets in the Bahamas operate with Bahamian dollars, either exclusively with SandDollar or with a combination of SandDollar and private tokens issued by the wallet providers. All wallet providers are licensed and regulated by the Central Bank.
Each time you make a payment you will need to use a password and PIN, or password and biometrics to authorise the transaction. Following additional safe practices, such as keeping your password and PIN private, and always using a PIN to keep your device locked—will also protect your account.
No. The Central Bank is not taking the country cashless. However, the Central Bank wants to ensure that all persons and entities inside The Bahamas have options to make and receive payments digitally. This is to allow individuals to be fully included when transactions are done on digital platforms, and to allow them to reduce their dependence on cash and cheque payments, which can be costlier for individuals who do not have, regular, direct access to physical banking services.
Cheques are not being eliminated. The Central Bank is working with commercial banks, the government, business community and other stakeholders to improve the efficiency of and access to digital payments in The Bahamas.