As parts of move to deepen adoption of various electronic payment options in the country, the Central Bank of Nigeria (CBN) is set to introduce new rules to regulate transactions.
CBN Director of Payment System Management Department, Musa Jimoh, who disclosed this on Monday in a statement 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.”
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.
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.