Secure Foreign Card Transactions Nationwide, CBN Mandates Banks

The Central Bank of Nigeria (CBN) has instructed deposit money banks and non-bank acquirers to introduce multi-factor authentication for foreign-issued card transactions that exceed $200 daily.

The directive was contained in a circular dated December 18 and signed by Rita Sike, director of the financial policy and regulation department. The apex bank also extended the authentication requirement to transactions above $500 weekly and $1,000 monthly, while directing operators to configure point-of-sale (POS) terminals for foreign card usage.

According to the CBN, the policy is aimed at ensuring smooth and efficient access to local currency withdrawals, payments and transfer services for users of foreign cards across the country.

The regulator said the initiative is designed to expand access to funds, strengthen transaction security and improve user experience for tourists and Nigerians in the diaspora visiting Nigeria.

Banks ordered to enable international card acceptance

The CBN further directed banks and non-bank acquirers to configure all automated teller machines (ATMs), POS terminals and virtual terminals to accept international cards through Nigerian acquirers. Institutions were also told to fully comply with card association standards and obtain the required certifications to support seamless transaction processing.In addition, financial institutions were instructed to ensure continuous system availability to avoid transaction disruptions.

Secure Foreign Card Transactions Nationwide, CBN Mandates Banks