The Central Bank of Nigeria (CBN) has directed banks and non-bank acquirers to configure all automated teller machines (ATMs), point-of-sale (POS) terminals, and virtual payment platforms to accept foreign-issued payment cards seamlessly across the country.
The directive was contained in a circular signed by the Director of the Financial Policy and Regulation Department, Dr Rita Sike, as part of efforts to ensure uninterrupted and efficient transactions for users of international cards in Nigeria.
According to the CBN, all card acceptance devices must comply with global card association standards and possess the required certifications to process foreign card transactions through Nigerian acquirers.
The apex bank also mandated banks and non-bank acquirers to implement multi-factor authentication for foreign card transactions exceeding $200 per day, $500 per week, and $1,000 per month, or their naira equivalents.
“For ATM cash withdrawals, banks must comply with approved withdrawal limits,” the circular stated.
It further directed financial institutions to clearly disclose applicable exchange rate-based on prevailing official market rates and all related charges to customers before completing transactions.
Transactions, the CBN stressed, must only proceed after users have accepted the stated terms, with evidence retained.
The regulator also instructed banks to maintain sufficient liquidity to settle transactions and ensure that merchants are paid in local currency (naira).
In addition, banks and acquirers were told to deploy transaction-monitoring systems to detect unusual usage patterns of foreign cards across all terminals and strengthen know-your-customer (KYC) and anti-money laundering (AML) controls for merchants handling foreign card payments.
Merchants are required to ensure card-present transaction receipts are properly signed and to request valid identification where transactions appear suspicious.
The CBN further noted that card acceptance devices must support contactless payments for low-value transactions and that consumer complaints must be resolved within approved timelines.
Financial institutions were also directed to establish robust and auditable chargeback management processes in line with card scheme rules and CBN guidelines, including timely evidence collation, refunds, and post-incident analysis.
Transaction records must be retained for a minimum of 12 months and be retrievable within 24 hours upon request.
Banks and acquirers were instructed to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU) and recalibrate fraud-monitoring systems to reduce false declines on legitimate transactions.
The CBN advised tourists and returning Nigerians experiencing difficulties using foreign-issued cards to lodge complaints with its Consumer Protection Department via website.