While the Greek crisis won’t affect tourists, many Greeks abroad – either on vacations or studying – are feeling “trapped” as Greece-based banks interpret capital controls in different ways. Some are placing limits to all Greek accounts that restrict daily withdrawals from ATMs at 60 euros, regardless of where the account holder is located.

This has caused a great deal of confusion with a number of Greek travelers left “high and dry”, without access to cash, while others report business as usual as they continue to pay for food and buy petrol without problems.

A group of 40 Greeks who arrived in Washington D.C. on June 23 after prepaying for their tickets and accommodation found that they were unable to spend more than $US20 via their cash card per day. The Greeks in question are athletes of the Police-Fire Brigade who are in Washington to participate in international sports championships and are set to return to Greece on July 9. Naturally, being in such a predicament, a number of the group want to speed up their return to Greece but are finding it impossible to use their credit cards, says one member of the team, when speaking to the daily Eleftheros Typos.

One global payments industry expert, who declined to be named, said that different banks interpret the rules in different ways. “Some of the Greek banks are taking the view that no transactions are allowed abroad and declining all payments, whether at ATMs or in shops. Others are allowing individuals to take out €60 at an ATM, but at point-of-sale [such as shops and hotels] are authorizing the transaction. Others are allowing ATM transactions above €60 plus all point-of-sale transactions.”

The Guardian refers to Georgios Gatos, who runs a web-based yacht hire business, Incrediblue.com. He states that there were problems paying suppliers, as corporate debit cards consider these transactions as transfers abroad.

Cross-border debit and credit card transactions require requests sent via Visa or Mastercard to banks in Greece that decide to authorize or decline the payment. Confusion enters the equation when different banks take different positions on capital controls.

The embassy of Greece in London said that no vacationers had contacted the embassy. Piraeus Bank in Athens said account holders have been able to access cash at foreign ATMs.

The Foreign Ministry …to the rescue:

On the instructions of Foreign Minister Nikos Kotzias, successive meetings were held at the ministry on June 30 to assist Greek citizens abroad in dealing with practical issues that have arisen following the implementation of the Act of Legislative Content (ALC) on the “Long-term bank holiday”.

Specifically, it was decided that the requests of Greek students studying abroad should be submitted, in accordance with the ALC, by the interested parties, to the Bank Transaction Approval Committee (paragraph 4 of the ALC).

The requests concerning hospitalization of Greek citizens who are abroad shall also be submitted, in accordance with the ALC, by the interested parties, to the Bank Transaction Approval Committee (paragraph 4 of the ALC).

The Secretariat General for Greeks Abroad is drawing up a special regulation for restoring the smooth flow of pensions to Greeks living abroad, to whom applies, in principle, whatever applies to all Greek citizens.

With regard to Greek tourists who are currently abroad, the Finance Ministry drew up a solution providing for the servicing of credit cards of Greek banks and covering the needs of Greek tourists, in accordance with the relevant limit that is to be set by the Bank Association.

Finally, instructions have been issued to all Diplomatic and Consular Missions to remain vigilant and provide all possible assistance to Greek citizens.

Of course, none of the mess would have happened if capital controls had not been necessary in the first place…