The Central Bank of Nigeria (CBN) has directed banks and non-bank acquirers to upgrade all ATMs, POS terminals, and virtual payment platforms to accept international cards and ensure seamless transactions across Nigeria.
The directive, issued in a circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, mandates full compliance with card association standards and possession of necessary certifications for efficient transaction processing.
CBN also instructed banks to implement multi-factor authentication for foreign card transactions exceeding $200 per day, $500 per week, and $1,000 per month.
“In this regard, banks and non-bank acquirers shall implement multi-factor authentication for all withdrawals and online transactions exceeding the stated limits,” the circular reads.
The regulator further directed banks to enforce approved cash withdrawal limits, transparently communicate applicable exchange rates and associated charges, and complete transactions only after users accept the terms. Banks are also required to maintain sufficient liquidity to settle merchant transactions in local currency.
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The circular emphasised the need for continuous monitoring of unusual transaction patterns, enhanced know-your-customer (KYC) and anti-money laundering (AML) measures for merchants, and proper documentation of card-present transactions, including signed receipts and identity verification for suspicious activities.
Acquirers are also required to equip terminals with contactless payment options for low-value transactions and ensure consumer complaints are resolved within stipulated timelines.
“Acquirers shall implement and maintain robust, auditable chargeback management processes aligned with card-scheme rules and CBN guidelines, including timely case intake, evidence collation, refund execution, and post-incident analytics,” the statement said.
All transaction documentation, including terminal approval slips, signed merchant receipts, and item or service descriptions, must be retained for at least 12 months and be retrievable within 24 hours for dispute resolution. Acquirers are also mandated to provide quarterly training to merchants and agents on chargeback and dispute-handling procedures.
Banks and non-bank acquirers are required to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU) and recalibrate fraud-monitoring systems to minimise false declines on legitimate transactions.
The CBN urged tourists and returning Nigerians experiencing difficulties with foreign-issued cards to report complaints to its Consumer Protection Department via [email protected].
