CBN To Banks: Your ATMs Must Accept Foreign Cards

The Central Bank of Nigeria, CBN, has directed commercial banks in the country and other financial institutions, OFIs to configure their Automated Teller Machines, ATMs to accept international debit and credit cards. Such foreign cards, the apex bank said must have necessary certifications and conform with international best standards.

The Yemi Cardoso-led CBN issued the directive in a circular signed by Dr Rita Sike, Director, Financial Policy and Regulation Department.

According to the apex bank, banks and non-bank acquirers must also ensure that they created a multi-factor authentication mechanism for foreign card transactions above   $200 per day, $500 per week and $1,000 per month, noting that banks must ensure compliance with approved cash withdrawal limits, regarding ATMs withdrawals.

Commercial banks and non-banking operators, the CBN siad, must also  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.

CBN noted that operators must ensure that card acceptance are equipped with contactless payment options for low-value transactions and that consumer complaints must be resolved within approved time limits.by

The apex bank said “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).”

“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.”

“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 statement 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 apex bank noted in the circular.

Meanwhile, sources in the CBN informed the magazine on Monday that the directive is expected to take effect next year, as the banks are expected to put critical infrastructure in place to support the new regime.