JUST IN: CBN Impose Daily Transaction Limit for Contactless Payments

The Central Bank of Nigeria (CBN) has set a maximum daily transaction limit of N50,000 for contactless payments.

TRACKNEWS reports that in a circular released on Tuesday and signed by Musa Jimoh, the director of CBN’s payments system management department, the apex bank emphasised the need for verification and authorisation for transactions that surpass the specified limits due to the associated risks of contactless payments.

The circular states, “In light of the issuance of guidelines on contactless payments in Nigeria and considering the risks associated with contactless payments, the bank hereby defines transaction limits that require verification and authorisation.”

For contactless payments through accounts and wallets in Nigeria, the transaction limit is set at N15,000, with a daily cumulative limit of N50,000. Transactions exceeding these limits are classified as higher-value contactless payments and require appropriate verification and authorisation.

Furthermore, the CBN emphasised that transactions exceeding the limits would be subject to the existing know-your-customer (KYC) requirements and limitations of electronic payment channels. The apex bank added that transactions surpassing the stipulated daily cumulative limit would need to be conducted using contact-based technology.

Contactless payments offer a secure and convenient method of conducting transactions without the need for physical contact between the payment device and the payment terminal.

This payment method encompasses a range of devices, including prepaid, debit, and credit cards, key fobs, mobile electronic devices, and wearable devices. By utilising near-field communication (NFC) technology, users can simply tap or wave their payment device near the terminal to complete a transaction.

It is worth noting that the CBN has recently implemented various policies aimed at fortifying the bank following the dismissal of former governor Godwin Emefiele. Most recently, on Sunday, the CBN instructed commercial banks to collect and verify customers’ social media handles as part of their KYC procedures.