Understanding the Central Bank of Nigeria's New Contactless Payment Guidelines

The Central Bank of Nigeria (CBN) has unveiled new contactless payment policies as part of a substantial effort to improve security and encourage seamless transactions. These guidelines have a significant effect on many parties participating in the ecosystem of contactless payments. In this blog article, we'll look at how PayContactless, a leading payment solution, makes it easier for companies to adopt these rules and accept contactless payments.

‍

‍

Stakeholders and their Roles:

The CBN's guidelines define the roles and obligations of many parties, including issuers, acquirers, payment schemes, switching businesses, payment terminal services providers, aggregators, merchants, and customers. In order to provide a hassle-free experience, PayContactless serves as a catalyst for businesses to implement and comply with these rules more quickly.

‍

‍

Issuers:

To make contactless payments easier to activate, PayContactless collaborates closely with issuers. Businesses can easily link their bank accounts with PayContactless, ensuring that payments are initiated with customers' full consent and also adhering to the strict security and technological requirements required by the CBN.

‍

Acquirers:

PayContactless makes it effortless for acquirers to ensure compliance with new regulations. Businesses are able to conduct contactless transactions while adhering to to the required rules and protocols established by Central Bank of Nigeria (CBN) thanks to our comprehensive payment processing system's seamless integration with acquirers such as Sterling bank, UBA, and Fidelity Bank..

‍

Payment Schemes and Switching Companies:

PayContactless works alongside major payment schemes like Mastercard and Visa as well as switching companies like NIBSS and ISW. Our technology makes sure that transactions are properly routed and risk-managed, resulting in a seamless and secure payment experience for both customers and businesses.

‍

Payment Terminal Service Providers and Aggregators:

PayContactless makes it easier for aggregators and payment terminal service providers (PTSPs) to fulfill CBN requirements. In order to guarantee that payment terminals are current, compliant, and operate at their best, we offer thorough support and assistance. PTSPs and aggregators like Interswitch and FLW can effectively control payment processing risk and assure frequent terminal updates with PayContactless.

‍

‍

Merchants:

PayContactless enables merchants to have  the ability to accept contactless payments easily and in accordance with CBN regulations. Customers will have a simple and reliable payment experience thanks to the businesses' ability to show clear pricing information and contactless symbols thanks to our user-friendly interface. By integrating PayContactless, merchants can efficiently have  their devices ready to take contactless payments, creating a seamless checkout experience.

‍

‍

Know The Limits

For single transactions, the limit is set at 15,000 NGN. This means that for purchases below this amount, you can simply tap your card or device to make a payment without the need to enter your PIN.

However, if your purchase exceeds the 15,000 NGN limit, you will be prompted to enter your PIN for added security. It's important to keep this in mind to ensure a smooth payment experience.

Additionally, there is a daily cumulative limit of 50,000 NGN. This means that if your total spending for the day reaches or exceeds this amount, any subsequent transaction, regardless of the value, will require you to enter your PIN. This ensures enhanced protection for your transactions and helps prevent unauthorised use of your payment instrument.

‍

Conclusion

The introduction of the CBN's new contactless payment regulations marks a significant step in the direction of enhancing security and standardizing procedures across Nigeria's payment ecosystem. By providing a comprehensive payment solution, PayContactless takes satisfaction in making it easier for businesses to implement these rules. Businesses can confidently adopt the new regulations, optimize their processes, and provide consumers a safe and smooth payment experience with PayContactless.It's time to unlock the full potential of contactless payments with PayContactless

‍