“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.”
PEGASUS REPORTERS, LAGOS | JUNE 30, 2023
The Central Bank of Nigeria, CBN, has placed a N50,000 daily limit on contactless payments either through bank accounts or digital wallets. The apex bank also limited the amount per transaction to N15,000 on contactless payments.
The CBN disclosed this this during the week in a circular titled, “Transaction Limits on Contactless Payments.
The circular signed by the Director, Payment System Management Department, CBN, Mr. Musa Jimoh stated:
“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.”
According to the ‘Guidelines for Contactless Payments in Nigeria also issued during the week by the CBN, “Contactless technology is a technology that enables an alternative payment method whereby payment instruments are used without physical contact with devices. Contactless technology in payments provides easy, convenient, and efficient cashless options for users.
The release gave an illustration of the policy thus: “Examples of contactless payment instruments include pre-paid, debit and credit cards, stickers, fobs, wearable devices, tokens and mobile electronic devices. Contactless-enabled payment terminals interact with contactless payment devices to facilitate payments.”
Speaking on the development, a financial analy who spoke on condition of anonymity said that the most affected segment by this policy will be scammers and petty fraudsters who depend trick their victims into some dubious relationship in exchane for cash transfer.
“We’er going to have a situation where it will be easier now to trace and arrest such persons as they will be requested to identify themselve before making withrawal above the stated sum”
Asked if with the daily set limit a fraudster was not likely to escape the rule. he said:
“You’re right it will not affect some very small ones among them who are scamming for a few dollars. However, whoever is going to send a large amount of funds to any prospect will certainly follow up with the transaction. Don’t forget that the practice id that once a scammer hits his anticipated target, the block all communications with the client. When this happens, the victim can petition the bank through a fraud alert to dsicontinue remittance”.
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