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Business News

CBN introduces new rules for e-payment channels users

In a bid to encourage more people to use e-payment channels, especially PoS machines, CBN has disclosed that it would introduce new rules. 

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After suspending N50 PoS charge, CBN introduces new rules , Musa Jimoh, CBN’s Directive Actively Puts Fintechs in the Centre for the Drive of Financial Inclusion but What Could Go Wrong

In a bid to encourage more people to use e-payment channels, especially Point of Sale (PoS) machines, the Central Bank of Nigeria (CBN) has disclosed that it would introduce new rules.

This disclosure was made in a statement signed by the CBN Director of Payment System Management Department, Musa Jimoh.

Accion Venture offers 30% of investment fund to African Fintechs driving financial inclusion

Jimoh said the move was part of the bank’s plan to deepen the adoption of various electronic payment options available to users to develop the payment system.

According to the statement, the bank said that the use of a single messaging format for PoS transactions was already posing a challenge in introducing the use of pre-authorisation as a mode of payment in Nigeria.

For merchants, the new CBN guide would ensure they obtain the Acquirer Device Validation certification or the applicable testing completion notification from the CBN licensed card schemes.

The CBN circular read: “By this directive, all PoS terminal must have the capability for transaction pre-authorisation and sales completion. All card issuers are required to build the capability and enable the processes for pre-authorisation and sales-completion of transactions. Card schemes are also required to provide online simulators for acquirers and issuers to test their systems, when necessary.”

[READ MORE: CBN may announce new recapitalisation plan soon)

Jimoh explained that although the new rule took immediate effect, the deadline for compliance is slated for July 31, 2020. After the deadline, non-compliant merchants risk sanctions as stated by the apex bank.

What you should know:  Data obtained from the Nigeria Interbank Settlement System (NIBSS) recorded that the total volumes of PoS transactions for 2017 stood at 146.3 million which was worth N1.4 trillion. Also in 2018, 285.9 million transactions were recorded which is worth N2.3 trillion. Finally, 187.7 million PoS transactions were recorded for six months-January to June in 2019 worth N1.4 trillion.

Recall that Nairametrics reported that depositors across banks did transactions over the instant payment and PoS machines worth N97.32 trillion from January to November 2019.

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

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