CBN Announces Transaction Limit For Contactless Payments
The Central Bank of Nigeria (CBN) has announced new transaction limits for contactless payments in the country, effective from June 27, 2023.
This was made known through a circular signed by Musa Jimoh, the director Payment Systems Management Department.
According to the CBN, the new development means that customers can make contactless payments of up to N15,000 per transaction and up to N50,000 per day without entering their PIN or biometric verification.
The move is aimed at enhancing the security and convenience of contactless payments, which use technologies such as Near Field Communication (NFC) and Quick Response (QR) codes to enable customers to pay without physical contact with the merchant or the payment terminal.
However, for higher-value contactless payments that exceed these limits, customers will be required to provide appropriate verification and authorisation, such as their PIN or biometric data.
The CBN said that for these transactions, the existing Know Your Customer (KYC) requirements and limits on the electronic payment channels will apply.
It also stated that contactless payments above the stipulated daily cumulative limit of N50,000 will have to be conducted using contact-based technology, such as inserting or swiping the card on the payment terminal.
The CBN said that the new transaction limits are in line with its mandate to promote a safe and efficient payment system in Nigeria and to protect the interests of consumers and other stakeholders in the industry.
The CBN also issued extensive guidelines on the operations of contactless payment in Nigeria.