Holiday cash crisis: SOGEBANK freezes global debit card use since November

SOGEBANK has left thousands of its customers stranded and frustrated after suspending international transactions on its Visa debit cards for nearly two months with no end in sight. The disruption that began in early November is causing significant hardship for clients relying on their cards for overseas and online transactions, especially over the holiday season.

Introduced last February, the international transactions service was designed as a modern solution for Haitians, enabling them to make international payments in stores, online, or withdraw cash abroad. It quickly became a vital tool, especially for Haitians in the United States—many of whom, including those on the Biden administration’s humanitarian parole program, rely on U.S. dollar accounts from Haiti. However, the indefinite suspension has left them unable to access their funds. According to sources familiar with the issue, technical and security problems, including hacking, have disrupted the banking system and contributed to the ongoing crisis.

Initially, customers trying to pay for transactions or withdraw money from ATMs abroad with their Visa debit cards saw their transactions declined, with funds in their checking accounts abruptly becoming unavailable without advance notice of a problem. Frustrated, many flooded the bank’s customer service with calls, WhatsApp messages, and emails. By Nov. 15, SOGEBANK issued a notice indicating that international transactions on debit cards were temporarily unavailable due to service improvement operations without providing a timeline for their resumption. 

“As part of the continuous improvement of our services, we would like to inform you that international transactions on your debit cards are temporarily unavailable,” SOGEBANK said in the public notice. “This pause is necessary to optimize the future use of this functionality.” 

Nearly eight weeks later, the service remains unavailable, leaving thousands in limbo while their money is being held at the bank. A subsequent notice issued on Dec. 5 reiterated the unavailability of international transactions. However, similar to the first one, the second notice failed to provide a timeline for resolving the problem.

SOGEBANK, formally known as Société Générale Haïtienne de Banque, S.A., managed by the Groupe Sogebank, was formed on April 26, 1986, when the Royal Bank of Canada sold its Haiti-based operations to a group of Haitian investors from the economic elite.  In less than 40 years, it has grown to become one of Haiti’s three largest commercial banks, along with Unibank S.A. and Capital Bank S.A.

Bank promises fall flat as customers express desperation

When launching the service earlier this year, SOGEBANK touted the card as a groundbreaking solution for global transactions. “This card is the response to the many requests from our customers who wish to have a payment facility open to the international market,” said the bank president and director general, Robert Moscoso, at the time.

Many people who knew they would need it while abroad or for online purchases were thrilled and seized on the service option. Now, their happiness becomes a nightmare. The prolonged suspension and lack of transparency have eroded customer trust and confidence. SOGEBANK’s notices continue to ask customers to limit card use to local transactions but fail to provide a concrete timeline for when international services will resume.

For one, running away from the escalating gang-led insecurity in Port-au-Prince, Johnson Souffrant left Haiti in September and relied on his debit card to pay for food and other necessities. He  works virtually for a nonprofit organization as a project manager, which allows him to credit his SOGEBANK account regularly. The situation has left him struggling to navigate life abroad. 

“This card was my only way to pay for food and other essentials. Now, I feel completely abandoned,” he said.

With no resolution in sight, SOGEBANK’s clients are left hoping for a swift response to address their financial concerns and restore confidence in the bank’s services. Until then, they remain frustrated and uncertain, unable to access their funds as they once did.

“I don’t know what to do. For over six weeks, I have been unable to do my shopping, and the bank does not guarantee a resolution within a reasonable time,” added Souffrant.

Similarly, small business owners in Haiti who rely on the cards for importing goods have been severely affected. “I opened this account to pay for my business supplies. With this suspension, I’m forced to use a credit card, which comes with high fees,” Esther Jean-Paul, a clothing retailer, told The Haitian Times.

Beyond the suspension, customers have raised concerns about the debit card’s security. Some reported unauthorized withdrawals from their accounts or unauthorized online transactions.

Garry Auguste, who currently lives in West Palm Beach, Florida, says he is one of the victims. “While I can’t make any transactions,” Auguste said, “upon checking via an ATM here, I realized that $600 had been withdrawn from my account within a week without my knowledge,” adding that the bank refused to provide a statement of his transactions online.

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