Yuletide: CBN orders banks to enable smooth ATM, POS transactions for foreign cards

They were also required to maintain system availability to avoid failed transactions.

The Central Bank of Nigeria (CBN) has ordered banks and other financial institutions to ensure uninterrupted use of foreign-issued payment cards across ATMs, point-of-sale (POS) terminals and online platforms nationwide.

The directive, contained in a Thursday circular issued by the CBN’s Financial Policy and Regulation Department and signed by its Director, Rita Sike, is expected to improve access to funds, security and user experience for tourists and Nigerians returning from the diaspora.

“In furtherance of ongoing efforts to facilitate access to funds and convenience, security, and user experience in foreign card usage for diasporans and tourists visiting Nigeria, all banks and non-bank acquirers of value are hereby directed to ensure uninterrupted and efficient local currency withdrawal, payment, and transfer services for users of foreign-issued payment cards nationwide,” the CBN said.

Under the circular, banks and fintechs were instructed to ensure that all ATMs, POS and virtual terminals were configured to accept international cards, complied with card-scheme standards and possessed the required certifications.

They were also required to maintain system availability to avoid failed transactions.

The central bank said institutions must “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),” while ensuring compliance with approved ATM cash withdrawal limits.

The CBN further directed banks and acquirers to clearly disclose exchange rates and charges to customers before completing transactions, maintain sufficient liquidity to settle transactions, and ensure that merchants were paid in local currency.

They are expected to “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,” the CBN said, adding that transactions should only be completed after customers have accepted the terms.

To curb fraud and abuse, the circular required institutions to strengthen know-your-customer and anti-money laundering controls, monitor unusual transaction patterns, recalibrate fraud-monitoring systems to reduce false declines on legitimate foreign card transactions, and ensure that card-acceptance devices supported contactless payments for low-value transactions.

Banks were also directed to require signed receipts for card-present transactions and request valid identity documents where transactions appeared suspicious.

Suspicious transactions must be reported to the Nigerian Financial Intelligence Unit in line with existing regulations.

For acquirers, the CBN mandated robust and auditable chargeback management processes, retention of transaction records for at least 12 months, and quarterly training for merchants and agent networks on dispute handling and chargebacks.

The regulator warned that unresolved customer complaints escalated to the CBN would attract sanctions.

Tourists and Nigerians returning from the diaspora who experienced difficulties using foreign cards were advised to report such incidents to the CBN’s Consumer Protection and Financial Inclusion Department.

“The CBN will monitor compliance with this directive and will impose appropriate sanctions on any institution found in breach, in accordance with extant regulations,” it said.

PREMIUM TIMES reports that the move comes during the yuletide period, when a surge in visits by Nigerians living abroad and foreign tourists typically leads to increased reliance on foreign-issued cards for cash withdrawals and payments.

In previous festive seasons, transaction failures and unclear charges have been a common source of complaints.