Published: 12:00 AM, 27 October 2026
Making International Air Ticket Payments More Convenient Through Cards
International travel has become an increasingly important part of Bangladesh’s economic and social landscape. Students travelling abroad for education, professionals attending business engagements, migrant workers managing travel arrangements, and individuals visiting other countries for various legitimate purposes all require efficient access to international payment facilities. As global commerce and digital payments continue to evolve, payment convenience has become an important factor in ensuring competitive pricing, transparency and ease of transactions.
Against this backdrop, Bangladesh Bank’s recent circular dated September 29, 2026, regarding the use of international cards for purchase of air tickets from airlines operating in Bangladesh represents a significant step towards modernizing the payment arrangement for overseas travel. The circular builds upon the existing framework under which resident Bangladeshi nationals are allowed to use international cards for purchasing air tickets for travel abroad and introduces greater flexibility by recognizing the global payment arrangements used by international airlines.
Previously, the facility for purchasing air tickets through international cards was linked with the requirement that ticket sale proceeds be acquired through payment service arrangements with Authorized Dealer (AD) banks operating in Bangladesh. This arrangement ensured that foreign currency earnings from ticket sales were captured through domestic banking channels. While the objective of ensuring proper monitoring and compliance remained important, the evolving nature of international airline payment systems required a more flexible approach.
Most international airlines operate through globally integrated acquiring and settlement arrangements. These systems are designed to facilitate secure and efficient processing of card payments across multiple jurisdictions. Requiring every international airline to establish a separate local acquiring arrangement may create operational challenges, increase costs and potentially affect the efficiency of payment processing. More importantly, it may limit travellers’ ability to access airline sales channels that often provide competitive fares, flexible options and direct booking facilities.
The revised framework addresses this issue by allowing purchases of air tickets from foreign airlines operating in Bangladesh through international cards even where ticket sale proceeds are settled through established international acquiring and payment settlement arrangements outside Bangladesh. This approach recognizes the practical realities of the global aviation and payment ecosystem while maintaining necessary regulatory oversight.
A key feature of the revised arrangement is that eligibility of transactions will be identified through approved Merchant Category Codes (MCCs) of respective airlines. MCCs are internationally recognized transaction classification codes used in card payment systems to identify the nature of a transaction. The use of MCCs provides a technology-based mechanism for distinguishing eligible airline ticket purchases from other international card transactions.
Under the new arrangement, AD banks will recognize the approved MCCs of respective airlines for identifying eligible transactions. This will facilitate the replenishment of international cards after verification of eligible air-ticket purchases. The approach provides a balance between customer convenience and regulatory discipline by ensuring that the facility is available only for genuine airline ticket transactions.
An important aspect of the circular is that the facility is kept outside the applicable travel entitlement. International cards issued under travel quota arrangements can therefore be replenished up to the amount utilized for eligible air-ticket purchases, subject to verification by the concerned AD bank and appropriate arrangements with the cardholder under the existing banker-customer relationship. This ensures that travellers do not face a reduction in their available travel entitlement merely because they have used their international cards for purchasing air tickets through permitted channels.
The circular also maintains an important distinction between foreign airlines and locally owned airlines. The facility for settlement through international acquiring arrangements outside Bangladesh will apply to foreign airlines operating in Bangladesh. For Bangladeshi airlines, ticket sales for travel from Bangladesh to destinations outside Bangladesh will continue to follow the applicable requirements relating to local acquisition and settlement of ticket sale proceeds. This distinction helps ensure that domestic foreign exchange flows arising from locally owned airline operations remain appropriately managed.
From the perspective of foreign exchange management, the revised arrangement does not create an unrestricted outward remittance facility. Instead, where ticket sale proceeds of foreign airlines are settled abroad, such proceeds will be properly accounted for and adjusted against the remittable surplus earnings of the respective airlines in accordance with applicable foreign exchange regulations. This ensures that the foreign currency obligations arising from airline operations remain within the established regulatory framework.
The reporting framework also remains intact. AD banks are required to report transactions under the facility to Bangladesh Bank in accordance with the prescribed reporting routine, including through the relevant TM modules. This reporting mechanism will enable Bangladesh Bank to monitor transaction flows, ensure regulatory compliance and maintain appropriate oversight.
The policy change reflects a broader transition in Bangladesh’s foreign exchange management approach—moving towards greater integration with international payment practices while retaining necessary safeguards. In an increasingly digital global economy, regulatory frameworks need to accommodate technological developments and internationally accepted payment models. At the same time, such flexibility must be supported by transparent reporting, transaction identification mechanisms and institutional accountability.
For travellers, the revised arrangement is expected to improve convenience by enabling direct purchase of air tickets through airline channels without unnecessary payment-related constraints. Greater access to global airline payment systems can also support fare transparency and market competitiveness by allowing customers to compare and select available options more easily.
For airlines, particularly international carriers, the circular provides operational flexibility by recognizing existing global payment infrastructures. It reduces the need for separate local payment arrangements while ensuring that regulatory reporting and foreign exchange compliance obligations continue to be met.
The introduction of MCC-based transaction identification demonstrates how regulatory objectives can be achieved through technology-enabled solutions rather than relying solely on traditional transaction routing requirements. Such approaches can contribute to a more efficient foreign exchange ecosystem where compliance is strengthened through better information flows and data-based monitoring.
Bangladesh’s aviation and payment sectors are expanding alongside increasing international mobility. As the country’s engagement with global markets grows, payment systems supporting international travel will need to become more seamless, secure and customer-focused. The latest circular is a step in that direction, combining the objectives of traveller convenience, competitive market access and prudent foreign exchange management.
The experience gained from implementing this framework may also provide useful lessons for future reforms in other areas of cross-border payments. By aligning domestic regulations with global payment practices while preserving effective oversight, Bangladesh can continue to develop a modern and responsive foreign exchange management system.
Mehdi Rahman writes on foreign
trade and monetary policies.
