The Central Bank of Nigeria (CBN) has reviewed its guidelines for the operation of electronic payment channels in the country and has directed banks and payment service providers to resolve customers’ chargeback complaints on electronic channels within the new recommended timelines starting from 8th June 2020.
The apex bank stated this in a circular issued on Sunday and endorsed by Musa I. Jimoh, its Director of Payments System Management.
According to the directive, addressed to all banks and payment service providers, the reversal of failed on-us ATM transactions (failed transactions when customers use their cards on their bank’s ATMs) shall be immediate from the current timeline of 3 days.
However, in a situation where an instant reversal fails because of technical issues of system glitches, the timeline for manual reversal shall not be more than 24 hours.
Similarly, the timeline for the reversals of failed not-on-us ATM transactions (failed transactions when customers use their cards on other banks’ ATMs) shall not exceed 48 hours from the current 3 to 5 days.
The central bank added that refunds on disputed/failed POS/Web transactions shall be effected within 48 hours from current 5 days.
“All Switches are to adjust the chargeback cycle in their dispute resolution systems to 24 hours from 72 hours.
“All Acquirer-initiated refunds shall henceforth be initiated by all banks within 48 hours.
“Processors are to provide daily settlement reports latest 8.am on T+1 basis.
“NIBSS shall send daily reports on reversals to processors on or before 10pm each day,” the document read in part.
The CBN also ordered banks in the country to clear their backlogs of all ATM refunds within one week and within two weeks for POS & Web customers’ refunds respectively with effect from 8th June 2020.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
In Niger, communities suffer as multi-billion naira Auna Dam project remains uncompleted despite 38 years of investments
In Niger State, the over 20 communities around Auna River have had their hopes for fresh water, electricity supply and...
INVESTIGATION: Years after, 15km Eleme-Onne end of East-West Road remains death-trap despite billions released
In this report, ARINZE CHIJIOKE chronicles the sufferings of road users on the 15km Eleme-Onne end of the East-West Road...
Gaza attacks intensify as 12 Thais, 10 Nepalese killed in Israel
The current violence in Israel has claimed the lives of at least 12 Thai people and 10 Nepalese individuals. Eight...
INVESTIGATION: Poorly executed classroom projects force children out of school in Niger State
Once a vibrant hub of learning for pupils, Kodo Primary School now resonates a stark contrast to its former days...
SPECIAL REPORT: Shell’s inaccurate data raises questions around efforts to control methane emissions in Nigeria
Much worse for the environment than carbon dioxide, despite global efforts to control methane, emissions continue soaring. With over a...