The Central Bank of Nigeria (CBN) has ordered banks and non-bank acquirers to upgrade their automated teller machines (ATMs), point-of-sale (POS) terminals, and online payment systems to ensure smooth use of foreign-issued payment cards across the country.
The directive, outlined in a circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, requires institutions to comply fully with global card association standards and hold the necessary certifications for seamless transaction processing.
As part of the new measures, banks must implement imulti-factor authentication for foreign card transactions exceeding $200 per day, $500 per week, and $1,000 per month, or their naira equivalents.
“In this regard, banks and non-bank acquirers shall: implement multi-factor authentication for all withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month (or its equivalent),” the circular reads.
“With respect to ATM cash withdrawal transactions, ensure compliance with approved cash withdrawal limits.
“Clearly communicate the applicable exchange rate, which shall be market-driven and based on the prevailing official rate, as well as other associated charges to users.
“Transactions should only be completed after the user has accepted the terms (with evidence obtained).
“Maintain sufficient liquidity position to settle transactions. Settle transactions for the merchant in local currency (naira).
“Implement transaction monitoring to detect unusual patterns in the use of foreign cards across all terminals.
“Strengthen know-your-customer and anti-money laundering controls for merchants handling foreign card payments.
“Require their merchants to ensure that all their copies of card-present transaction receipts are properly signed and to request for valid identity documents where a transaction appears suspicious.”
In addition, the CBN instructed banks to provide contactless payment options for low-value transactions, maintain auditable chargeback management processes, and resolve consumer complaints within approved timelines. Records of all card transactions must be retained for at least 12 months and be retrievable within 24 hours for dispute resolution. Quarterly training on chargeback and dispute management is also required for merchants and agent networks.
Tourists and Nigerians returning from abroad who experience difficulties with foreign card transactions have been advised to report issues to the CBN’s Consumer Protection Department via complaint4cbn@cbn.gov.ng.
