The Central Bank of Nigeria has issued a circular stating the transaction limits for contactless payments. According to the apex bank, the limit per transaction is N15,000 while the cumulative daily limit is N50,000.
For higher-value contactless payments, i.e. transactions that exceed the above stated limits, appropriate verification and authorisation would be required. Existing KYC requirements and limits on payment channels shall apply. Limits above the stipulated daily cumulative shall be conducted using contact-based technology.
Contactless payment is a payment method that allows consumers to conveniently and securely pay for goods and services by simply tapping a contactless-enabled credit card, smart card, or device on a compatible payment terminal. This form of payment eliminates the need for physical contact or the insertion of cards into a machine, making transactions quick and effortless.
Contactless payment offers a seamless and efficient cashless alternative, providing users with a hassle-free experience. It supports various instruments, including contactless-enabled pre-paid, debit, and credit cards, as well as key fobs, mobile electronic devices, and wearable devices. With contactless payment, individuals can enjoy the benefits of a fast, convenient, and secure cashless payment method.
Musa Jimoh, the Director, Payments Systems Management Department of Central Bank, also issued guidelines along with the circular. The guidelines were issued in furtherance of its efforts to standardize operations in the payments system, while encouraging the deployment of innovative products and sustaining the financial system stability.
He also stated that the guidelines were conceived to ensure that participants in contactless payments implement appropriate risk management processes and measures while keeping to best relevant standards.
The participants affected by the guidelines include: acquirers; issuers; payment schemes; switching companies; Payment Terminal Service Providers (PTSPs); Payment Terminal Service Aggregators (PTSAs) e.t.c.
He enjoined all the participants to ensure strict compliance with the guidelines.
The limit take effect from June 27, 2023.
