CBN limits transactions via contactless payments to N50,000 per day

The Central Bank of Nigeria (CBN) has imposed a daily limit of N50,000 on the use of contactless payments made either through bank accounts or digital wallets.

A maximum of N15,000 could be spent using a contactless payment method at one time, as this was another restriction imposed by the central bank.

The Central Bank of Nigeria (CBN) made this information public yesterday in a circular titled “Transaction Limits on Contactless Payments.”

The circular was signed by the Director of the Payment System Management Department at the Central Bank of Nigeria (CBN), Mr. Musa Jimoh. It stated: “Following the issuance of the Guidelines on Contactless Payments in Nigeria and in cognizance of the risks associated with contactless payments, the Bank hereby defines transaction limits above which verification and authorisation are required.

“The following shall constitute the transaction limits for contactless payments made through accounts or wallets in Nigeria: The maximum amount that can be spent on a single transaction is N15,000, and the daily cumulative limit cannot exceed N50,000.

Read Also: COAS affirms commitment of Nigerian Army to reestablish peace, security throughout Nigeria

“Higher-value contactless payments are transactions that exceed the aforementioned limits and shall require appropriate verification and authorisation. These payments can only be made using a card that is enabled for contactless payments.”

Know Your Customer (KYC) regulations and limits on electronic payment channels will still be enforced for these types of transactions.

“Limits that are above this stipulated daily cumulative limit must be conducted using technology that requires physical contact. Please adjust your behaviour accordingly.

“Contactless technology is a technology that enables an alternative payment method whereby payment instruments are used without making physical contact with devices,” the Central Bank of Nigeria (CBN) stated in its ‘Guidelines for Contactless Payments in Nigeria’ that were also issued yesterday. Users are given options that are easy, convenient, and efficient when it comes to not using cash thanks to the implementation of contactless technology in payment systems.

It went on to say that some examples of contactless payment instruments include pre-paid, debit, and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronic devices. Payment terminals that are enabled for contactless payments communicate with contactless payment devices to make the payment process easier.