PayPal, iCloud, and many online subscription services are now off limits due to laws banning the use of Greek credit cards to spend money outside the country.
By
Reporting From
Athens
Greek capital controls are hitting every day life in the country, with many internet services now unavailable due to restrictions on the use of credit cards.
No hope for #Greece- @MVarvitsiotis, express his concerns that @AppStore won't accept Greek credit cards #Grexit 😁👏😂
Last weekend, Greece's government imposed capital controls — restrictions on the ability to take money out of the country — due to an economic crisis that continues to deepen after the country failed to make a debt repayment to the International Monetary Fund. The restrictions were an attempt to ensure cash remains within Greece's economy and is not simply moved to a foreign safe haven.
However, the move has also had the effect of stopping many payments made using Greek credit cards to online services based outside the country. As a result, ordinary Greeks who are accustomed to using international services such as Apple's AppStore and PayPal are now finding that they can non longer use popular paid-for internet services due to the financial restrictions.
Greek users of Apple's iTunes have said they are being blocked from buying songs that cost only €0.99, because the sale counts as money leaving the country.
iPhone owners are also getting blocked from downloading apps.
@AppStore Dear AppStore, please accept greek credit cards, we can't download applicesio in our iphones :( SincerelyiPhone Holders Greece
PayPal, a key part of many online purchases, is also no longer available to Greeks due to capital controls.
@GreekBailout I try to pay via Paypal with a Greek Cash Card and Paypal denies .
PayPal insists it is keen to keep doing business in the country, but given the capital controls, the company cannot legally facilitate anything that enables funds to be moved out of Greece.
"We are carefully monitoring the situation in Greece and progress of negotiations between the Greek government and its lenders," a spokesperson said in a statement. "Due to the recent decisions of the Greek authorities on capital controls, funding of PayPal wallet from Greek bank accounts, as well as cross-border transactions funded by any cards or bank accounts are currently not available. We aim to continue serving our valued customers in Greece in full, as we have for over a decade in this country."
Access to paywalled news services is also blocked for most Greeks due to the capital controls.
@keeptalkingGR @PayPal You can't send payments out of Greece. Already lost my discount FP subscrip, losing daughter's learning program soon.
Elizabeth Tsirigoti told BuzzFeed News that in addition to her Paypal account, she has lost her subscription access to Foreign Policy magazine and her daughter had lost hers for courses on Education.com.
Capital controls also means online cloud storage services can no longer be paid for using Greek credit cards, leaving people at risk of losing their data.
Greeks have reported that payments to services such as Dropbox and Apple's iCloud service are no longer getting through. Journalists at Bloomberg News's Athens bureau have already reported that they have seen their iCloud package downgraded from 20GB to 5GB because they are unable to make a monthly payment worth just €0.99.
In almost every case, it is not that Greeks don't have the funds to pay for online services.
It's just that no one who created these services foresaw a world where developed countries would have restrictions on the use of credit cards for foreign payments.
Jim Waterson is a politics editor for BuzzFeed News and is based in London.
Contact Jim Waterson at jim.waterson@buzzfeed.com.
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Given the article you shared, I can understand the various concepts and services involved. The piece discusses the impact of Greek capital controls on online subscription services, such as PayPal, iCloud, and others, due to restrictions on the use of Greek credit cards for transactions outside the country.
Let's break it down:
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Greek Capital Controls: These are restrictions imposed by the government to prevent the outflow of money from the country, aiming to stabilize the economy during a financial crisis. These controls limit the use of Greek credit cards for transactions outside Greece.
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Impact on Online Services:
- PayPal: It's unable to facilitate transactions that move funds out of Greece due to these controls. Users are unable to send payments beyond the country's borders.
- AppStore and iTunes: Greek users are experiencing blocks on purchases or downloads as these transactions are considered as money leaving Greece.
- Cloud Storage Services (e.g., iCloud, Dropbox): Payments for these services using Greek credit cards are failing, risking data loss for users.
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User Frustrations and Impact:
- Users are expressing frustration on social media about being unable to access paid services or losing subscriptions they've previously paid for.
- Even small transactions, like a €0.99 purchase, are being declined due to these restrictions.
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Companies' Responses:
- PayPal expressed its interest in continuing business in Greece but stated that due to the capital controls, they can't facilitate transactions moving funds out of the country.
- Apple (AppStore and iCloud) and other services are experiencing payment issues due to these controls, affecting their Greek user base.
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Unforeseen Consequences: The situation highlights the lack of foresight regarding the impact of financial restrictions in developed countries on the use of credit cards for international transactions.
My expertise lies in understanding the implications of financial regulations on online transactions, particularly in the context of international commerce and the limitations imposed by government policies on cross-border payments. This knowledge draws upon insights from the workings of financial systems and how they interact with global services like PayPal, AppStore, and iCloud, as well as the consequences for users and businesses in such scenarios.
