Cbn new policy on pos transactions
You're referring to the recent policy changes by the Central Bank of Nigeria (CBN) regarding Point of Sale (POS) transactions!
As of January 2022, the CBN introduced new guidelines for POS transactions in Nigeria. Here are the key highlights:
- Daily Transaction Limit: The CBN set a daily transaction limit of N100,000 (approximately $250 USD) for POS transactions. This means that individuals can only make transactions up to this amount per day.
- Maximum Withdrawal Limit: The maximum withdrawal limit for POS transactions is N20,000 (approximately $50 USD) per transaction. This means that individuals can only withdraw up to this amount at a time.
- Card Verification: To reduce the risk of fraud, the CBN introduced a new card verification process for POS transactions. Merchants are now required to verify the card details (card number, expiration date, and CVV) before processing the transaction.
- Merchant Verification: The CBN also introduced a merchant verification process to ensure that merchants are legitimate and authorized to accept POS transactions.
- Transaction Fee: The CBN introduced a transaction fee of 0.5% of the transaction value for POS transactions. This fee is applicable to both the merchant and the cardholder.
- Card Present vs. Card Not Present: The CBN differentiated between card present and card not present transactions. Card present transactions are those where the card is physically present during the transaction, while card not present transactions are those where the card is not physically present (e.g., online transactions). The CBN set different limits and requirements for each type of transaction.
- Compliance: The CBN requires all POS merchants to comply with these new guidelines and regulations. Failure to comply may result in penalties, fines, or even the suspension of the merchant's POS terminal.
These changes aim to improve the security and efficiency of POS transactions in Nigeria, while also reducing the risk of fraud and financial losses.