The Central Bank of Nigeria (CBN) has directed banks and non-bank acquirers to implement multi-factor authentication for foreign card transactions exceeding $200 per day.
In a circular dated December 18 and signed by Rita Sike,
director of the financial policy and regulation department, the CBN asked banks
to implement the same authentication measure for transactions above $500 per
week and $1,000 per month, and configure point-of-sale (POS) terminals for
foreign card use.
The regulator said the move is part of efforts to ensure
uninterrupted and efficient local currency withdrawals, payments, and transfer
services for users of foreign-issued payment cards across Nigeria.
The apex bank said the measures are aimed at improving
access to funds, enhancing security, and boosting user experience for tourists
and Nigerians in the diaspora visiting the country.
BANKS DIRECTED TO CONFIGURE ATMS, POS TO ACCEPT
INTERNATIONAL CARDS
The CBN also directed banks and non-bank acquirers to
configure all automated teller machines (ATMs), POS, and virtual terminals to
accept international cards with Nigerian acquirers, comply fully with card
association standards, and possess the necessary certifications to enable
seamless transaction processing.
The organisation also instructed institutions to maintain
system availability to guarantee uninterrupted transaction processing.
“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, banks and non-bank acquirers were asked to
report suspicious transactions to the Nigeria Financial Intelligence Unit
(NFIU), and recalibrate fraud-monitoring systems to reduce false declines on
legitimate transactions.
The circular also said card acceptance devices must be
equipped with contactless payment options for low-value transactions and that
consumer complaints be resolved within approved timelines — warning that
unresolved escalations to the apex bank would attract sanctions.
“Furthermore, acquirers shall implement and maintain robust,
auditable chargeback management processes aligned with applicable card-scheme
rules and CBN guidelines (including but not limited to timely case intake,
evidence collation, refund execution, and post-incident analytics),” the apex
bank said.
“Require, verify, and retain documentation (including
terminal approval slip and signed merchant receipt, and item/service
description) for card transactions for use in dispute resolution and
chargebacks. The records shall be retained for a minimum of 12 months and be
readily retrievable within 24 hours of request by the Acquirer or Scheme.
“Provide quarterly training to their merchants and agent
networks on dispute handling and chargeback processes.”
The regulator advised tourists and Nigerian returnees
experiencing challenges using foreign-issued cards to report such incidents to
the CBN’s consumer protection department via complaint4cbn@cbn.gov.ng.
The CBN said it will monitor compliance with the directive
and impose appropriate sanctions on institutions found to be in breach.
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