The Central Bank of Nigeria has raised the daily cumulative limit for contactless payment to N50,000.
Contactless payment system are credit cards and debit cards, key fobs, smart cards, or other devices like smartphones and other mobile devices, that use radio-frequency identification or near-field communication for making secure payments.
There are low-level and high-level contactless payments, according to its “Draft Guidelines For Contactless Payment” released by the government- controlled bank last year.
The apex bank defines “High-value contactless payments are transactions that exceed the above-stated limits and shall require appropriate verification and authorization. Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology.”
The apex bank said in the guidelines that it has powers to review the daily contactless transaction, from time to time, after consultation with key stakeholders in the banking and financial sector.
“The bank shall determine the transaction limit and cumulative daily limits for contactless payments from time to time. Stakeholders shall be permitted to set limits in line with the bank’s limits,” CBN said in the document.
According to a circular released on Tuesday, signed by Musa Jimoh, director, CBN payments system management department, the apex bank said any transaction above N50,000 will require ” verification and authorisation” as a way to combat fraud.
Any transaction above this, the apex bank said will be carried out using “contact- based technology,” adding that existing know-your-customer, KYC, requirements and limits on the electronic payment channels shall apply, accordingly.
The circular said: “Following the issuance of the guidelines on contactless payments in Nigeria and in cognisance of the risks associated with contactless payments, the bank, hereby, defines transaction limits above which verification and authorisation are required.
“Transaction limits for contactless payments through accounts/wallets in Nigeria shall be as follows: transaction limit 15,000, daily cumulative limit N50,000.
“Higher-value contactless payments are transactions that exceed the above-stated limits and shall require appropriate verification and authorisation.
“Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology,”
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