Does Iraq not use credit ? Do they not accept credit cards ?

Answer 1

No, Iraq does not accept credit or debit cards. The primary reason is that they do not have the IT or electronic transfer/validation capabilities (infrastructure in place). Also, don't plan on using Traveler's Checks in Iraq or in most off the Arab countries. When I brought some to Kuwait with me prior to my working in Iraq, the hotel (a major hotel) wouldn't accept them. The Kuwaiti Bank I have an accout with said I could deposit them but it would take up to 6 months before they cleared. I signed them and sent them to my USA bank to deposit!

In Iraq I worked primarily on US military bases and you could us credit cards, debit cards, TC's and even personal checks. The military and AFFES (the military PX/BX) had a system set up to accomplish this capability.

Iraq is basically as CASH & CARRY or bartar economy. And they prefer US dollars or Kuwati Dinar vs. the new Iraqi dinar.

Answer 2

They do accept credit. In 2005 visa was instituted in the country and initially issued 30,000 credit cards. not sure how frequently they are used though, but they are accepted.