The Central Bank of Nigeria (CBN) has issued an exposure draft of the guidelines for contactless payments in Nigeria to ensure that contactless payment participants follow the highest applicable standards and execute the necessary risk management processes and measures.
This information is contained in a circular titled “Exposure Draft to the Guidelines for Contactless Payments in Nigeria,” issued by the apex bank.
Contactless payments have been recognized as a cutting-edge payment alternative for the safe and effective performance of low-value, high-volume transactions. These payments entail the completion of financial transactions without physical touch between the payer and the acquiring equipment.
According to the CBN, the draft guideline was conceived to ensure that participants in contactless payments implement appropriate risk management processes and measures while keeping to the best relevant standards.
The apex bank disclosed that the draft guideline is “exposed to all banks, other financial institutions, payments service providers and the general public for comments. The comments should reach the director, Payment System Management Department, CBN no later than November 5, 2022”.
Sidelines:
The guidelines are to provide minimum standards and requirements for the operations of contactless payments in Nigeria, as well as specify the roles and responsibilities of stakeholders involved in contactless payments in Nigeria.
Industry stakeholders are expected to comply with some specified standards like PA DSS – Payment Application Data Security Data, PCI PED – Payment Card Industry Pin Entry Device.
Operators are required to maintain certification to the standards in the circular, and regularly review the status of their systems, applications, network, and other devices, to ensure they remain compliant at all times.
Given the fact that contactless payments can be used to carry out high-volume transactions, operators who engage in contactless payments are saddled with the responsibility of preventing the use of their networks for purposes associated with money laundering and other financial crimes.
Value and charges applicable to a payment transaction must be communicated to the customer before the completion of a transaction.
