Panama’s system blocks scholarship card payments at casinos and gas stations

Panama’s Institute for Training and Use of Human Resources (IFARHU) uses a tracking system that automatically rejects attempts to pay with scholarship cards at establishments not included in the list of approved ones. These include casinos, gas stations, restaurants and other unauthorized merchant categories.

Automatic payment verification

As The Rio Times reports, citing TVN Noticias, about 5% of transactions made with such cards were declined. IFARHU Director General Carlos Godoy said that the system checks every payment attempt against a list of approved merchant categories and automatically rejects transactions that do not meet these requirements.

The system records the location where the payment attempt was made. Declined transactions do not mean that the funds have already been spent: the payment is stopped before it is processed, so the money does not reach the merchant.

More current news is available on the UA.News Telegram channel Telegram.

Permitted spending and monitoring

IFARHU transfers education grants, known as becas, to students’ payment cards. They are intended for spending at approved establishments and on permitted goods, including food, school supplies, educational materials and uniforms.

According to TVN Noticias, about 70% of approved transactions are made at supermarkets, while the remaining 30% are for school supplies, materials, uniforms and other expenses. IFARHU described the checks as ongoing monitoring of the program. No sanctions, suspension of payments, recovery of funds or investigations were reported.