CBN instructs banks to reconfigure ATMs, POS terminals for foreign card use
Story by Martha Gwary
To ensure seamless and efficient transactions for holders of foreign-issued payment cards in Nigeria, the Central Bank of Nigeria (CBN) has instructed banks and non-bank acquirers to reconfigure all automated teller machines (ATMs), point-of-sale (POS) terminals, and virtual terminals. These devices must accept international cards via Nigerian acquirers, fully comply with card scheme standards, and hold the required certifications for smooth processing.
The CBN announced this in a circular signed by Dr Rita Sike, Director of the Financial Policy and Regulation Department.
Among other measures, the CBN has required banks and non-bank acquirers to introduce multi-factor authentication for foreign card transactions exceeding $200 per day. Banks must also apply the same authentication for transactions above $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 $200 per day, $500 per week, and $1,000 per month (or equivalent),” the circular states.
It further specifies: “With respect to ATM cash withdrawals, 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.
“Complete transactions only after the user has accepted the terms (with evidence obtained).
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“Maintain sufficient liquidity to settle transactions. Settle transactions for merchants in local currency (naira).
“Implement transaction monitoring to detect unusual patterns in foreign card usage across all terminals.
“Strengthen know-your-customer and anti-money laundering controls for merchants handling foreign card payments.
“Require merchants to ensure that all copies of card-present transaction receipts are properly signed and to request valid identity documents where a transaction appears suspicious.”
The circular adds that card acceptance devices must support contactless payments for low-value transactions and that consumer complaints must be resolved within approved timelines.
“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),” it states.
Acquirers must “require, verify, and retain documentation (including terminal approval slip, 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 merchants and agent networks on dispute handling and chargeback processes.”
The CBN has directed banks and non-bank acquirers to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU) and to recalibrate fraud-monitoring systems to minimise false declines on legitimate transactions.
The regulator has urged tourists and Nigerian returnees facing issues with foreign-issued cards to report them to the CBN’s Consumer Protection Department via complaint4cbn@cbn.gov.ng.
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