CBN Orders Banks to Enable Foreign Card Transactions on ATMs, POS Terminals

The Central Bank of Nigeria has issued a new directive compelling banks and non-bank acquirers to fully configure their ATMs, POS machines and virtual terminals to accept foreign-issued payment cards across the country.

In a circular signed by the Director of Financial Policy and Regulation, Dr. Rita Sike, the apex bank said the move is aimed at ensuring seamless transactions for holders of international cards while strengthening security around electronic payments.

Under the new guidelines, banks must implement multi-factor authentication for foreign card withdrawals and online transactions that exceed $200 daily, $500 weekly, and $1,000 monthly. They are also required to comply with approved cash withdrawal limits for ATM transactions involving foreign cards.

The CBN further directed banks to clearly disclose market-driven exchange rates and associated charges to users, noting that transactions should only be completed after the customer accepts the terms.

Acquirers are also mandated to maintain adequate liquidity to settle transactions and to pay merchants in naira. They must additionally monitor transaction patterns to detect suspicious activity, strengthen KYC and AML procedures, and ensure merchants request valid identification for transactions that appear unusual.

The directive also requires all card-accepting devices to provide contactless payment options for low-value transactions, while consumer complaints must be resolved within approved timelines. Banks are to maintain a robust and auditable chargeback process, retain transaction records for at least 12 months, and provide quarterly training to merchants on dispute handling.

The CBN urged tourists and Nigerians returning to the country who experience challenges using foreign-issued cards to report such issues to its Consumer Protection Department via complaint4cbn@cbn.gov.ng.