CBN limits daily contactless payment to N50,000

The Central Bank of Nigeria (CBN) has limited the daily cumulative and single contactless payments, made through bank accounts or digital wallets to ₦50,000 and ₦15,000, respectively.

The higher-value contactless payments are transactions that exceed the above-stated limits and will require appropriate verification and authorisation.

The transaction limit for contactless payments took effect on Tuesday, June 27, 2023.

The apex bank’s director of the Payments and Systems Management Department, Musa Jimoh, disclosed this in a circular to banks, other financial institutions, and payment service providers.

“For these transactions, existing know-your-customer (KYC) requirements and limits on the electronic payment channels shall apply, adding that limits above this stipulated daily cumulative limit shall be conducted using contact-based technology.

“Banks shall determine appropriate transaction and daily cumulative limits for contactless payments from time to time”, noting that stakeholders shall be permitted to set limits in line with the bank’s limits,” the circular reads.

According to the CBN, contactless payment transactions under the stipulated limits per transaction/day may not require customer authorisation such as a Personal Identification Number, token, biometrics, etc., whereas higher-value contactless payments will require customer verification such as a PIN, mobile code, biometric identifier, etc., according to the CBN.

“Stakeholders shall implement a risk-based approach to setting volume and transaction limits. The risks attached to a customer will be based on KYC due diligence carried out during the customer onboarding process.”

It also noted that stakeholders shall provide customers with a choice to specify limits for the value of transactions that they would perform, and such limits shall not be higher than the maximum limits specified from time to time.

“Customers who wish to perform transactions above the maximum limit should request in writing to the bank and provide indemnity that reflects the risks involved. The bank shall approve, subject to its internal risk management policies,” CBN added.

The apex bank noted that it released the guidelines in furtherance of its mandate to ensure the safety and stability of the Nigerian Financial system and promote a resilient and stable payments system.

Guardian