June 28, (THEWILL) – The Central Bank of Nigeria (CBN) has set a daily cumulative limit for contactless payments.
The bank, in a circular on Tuesday, defined the transaction limits for contactless payment through accounts and wallets as N15,000 and a daily cumulative of N50,000.
Contactless payment systems 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.
“High-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,” CBN said.
The CBN had, in October 2022, released a ‘Draft Guidelines for Contactless Payments in Nigeria, which provides minimum standards and requirements for the operations of contactless payments in Nigeria.
Based on the guidelines, the contactless transaction is limited to only accounts or wallets that have the Bank Verification Number (BVN).
On guidelines 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
The circular signed by the Director, Payment System Management Department, CBN, Musa Jimoh reads: “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 maximum amount is N15,000 and daily cumulative limit maximum amount is N50,000.
“Higher-value contactless payments are transactions that exceed the above-stated limits and shall require appropriate verification and authorisation.
“For these transactions, existing Know Your Customer (KYC) requirements and limits on the electronic payment channels shall apply.
“Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology. Please be guided accordingly.”
