CBN Prohibits Accounts, Wallets Without BVN From Accessing Contactless Payment System

Tbe Central Bank of Nigeria has released the guideline for its contactless payment system.

Contactless payment allows consumers to pay for goods and services using their debit or credit cards with RFID technology without requiring the user to enter a personal identification number (PIN) or sign for a transaction.

Mobile wallets, tokens are among the popular forms of contactless payment.

Contactless credit cards have a chip embedded in them to allow them emit short-range radio waves.

It works in a manner that allows consumers place their card close to an NFC-enabled POS system, hence payment information is shared and approved.

With the new CBN guideline dated October 25, Nigerian banks are expected to tap into the world of contactless economy through issuing contactless payment cards on a large scale.

The apex bank’s guideline titled ‘Draft Guidelines for Contactless Payments in Nigeria‘, provides minimum standards and requirement for the operations of contactless payments in Nigeria.

CBN warned in the guideline that only licensed issuers and acquirers shall indulge in contactless payments.

Some of the guidelines for acquirers and issuers is the limitation of contactless transactions to only accounts or wallets that have the Bank Verification Number.

“Acquirers, issuers who engage contactless payments in Nigeria shall ensure that all their contactless devices are connected to an account or wallet that have Bank Verification Number,” CBN said.

Also, the CBN will set transaction limits which banks acquirers must adhere with.

The CBN also warned acquirers, banks, switching companies and other stakeholders to ensure resolution of disputed contactless transactions within the specified time set by the apex bank.

On issuers, the CBN said they shall be liable for fraudulent transactions on contactless payment arising from their negligence or connivance.

On the guideline for merchants, the CBN said any amount above the stipulated limits per transaction will request for customer’s authorisation such as PIN, token and biometrics.

“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,” the document said.