By Omobayo Azeez
As part of its efforts to realize gains of cashless policy in the country, the Central Bank of Nigeria (CBN) has introduced measures on pre-authorisation of card usage in the Nigerian electronic payment system.
The apex bank stated in a circular on Monday that it had identified the predominant use of single messaging format for Point of Sales (PoS) transactions as an obstacle to the use of pre-authorisation as a mode of payment in Nigeria.
In order to enable pre-authorisation and sales-completion of card transactions, the Apex bank directed all merchant acquirers to obtain Acquirer Device Validation certification or the applicable testing completion notification from CBN licensed card schemes.
By this directive, it added, all PoS terminals must have the capability for transaction pre-authorisation and sales completion.
“PTSA (NIBSS) to ensure that only banks that have conducted and obtained PoS terminal validation certificate for pre-authorisation and sales-completion from the relevant card schemes, had their PoS terminals registered on the Central Terminal Management System,” stated the circular signed by Musa Jimoh, director, payment system management department at CBN.
The apex bank also directed all card issuers to build capability and enable the processes for pre-authorisation and sales-completion of transactions; as well as provide online simulators for acquirers and issuers to test their systems when necessary.
This circular takes immediate effect, but with a deadline of July 31, 2020 for full compliance after which appropriate sanctions would be imposed for contraventions and non-compliance, it stated.
