The Central Bank of Nigeria (CBN) has warned banks, switching companies, and other relevant parties in the Nigerian payment system against discrimination in payment cards issued by Nigerian banks.
The apex bank’s Director, Payments System Management Department, Mr. Musa Jimoh, gave this warning in a circular to all banks, switching companies, and other operators in the financial system.
The Director, in the circular titled ‘Re: Interoperability and Interconnectivity of the Payments System Infrastructure in Nigeria’, stated that the warning was aimed at reminding the operators of some of the provisions of its Guidelines on operations of electronic payment channels in Nigeria (June 2020).
On POS, he clarified that the merchant acquirers shall ensure that the purchased and deployed POS terminals shall accept all cards.
The circular reads: ‘’The Central Bank of Nigeria has observed that a number of the acceptance devices deployed by banks discriminate between payment cards. For the avoidance of doubt, all certified payment acceptance devices deployed in Nigeria are required to accept ALL transactions arising from any card issued by any Nigerian bank.
‘’The circular serves as a reminder of the following provisions of the Guidelines on operations of electronic payment channels in Nigeria (June 2020);
Section 2.4.1.3; Merchant acquirers shall ensure that POS terminals purchased and deployed at merchant/retailers location through the CBN licensed Payment Terminal Services Provider shall accept all cards (card agnostic)
Section 2.4.1.7; To achieve interoperability, all POS terminals deployed in Nigeria shall accept all transactions arising from any card issued by any Nigerian bank. Accordingly, acquirers and other service providers shall be card neutral entities that have no reason to promote or favor any card brand over the other;
Section 2.4.1.8; Every acquirer must be able to accept all cards issued by Nigerian banks, whether through a direct license or via an arrangement with any other acquirer that is licensed under the relevant card/payment schemes’’, the circular added
He advised all the affected service providers to take note of the circular on interoperability and interconnectivity of the Payment Service Infrastructure in the country.
Jimoh maintained that the circular served as notice to all banks and acquirers “to desist from the practice of discrimination, as observed breaches will attract appropriate regulatory sanctions.’’
Analysts believe that the directive will help the apex bank in its current efforts to transform the Nigerian economy into a cashless payment system.
On Tuesday, the CBN announced a new policy on over-the-counter cash withdrawal limits for individuals and companies as well as withdrawal limits for Automatic Teller Machine (ATM) and Point of Sale (POS) in furtherance of the cashless payment system.
