The Central Bank of Nigeria has issued new directives aimed at improving the use of foreign-issued payment cards across the country, as part of efforts to ensure smoother and more reliable transactions for visitors, returning Nigerians, and other cardholders.

According to a circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, the apex bank instructed all banks and non-bank acquirers to configure their automated teller machines, point-of-sale terminals, and virtual payment platforms to accept international cards routed through Nigerian acquirers. These systems must also comply fully with global card association standards and hold the required certifications to support seamless transaction processing.

Meanwhile, the CBN introduced stricter authentication requirements for higher-value foreign card transactions. Banks and acquirers are now required to apply multi-factor authentication to withdrawals and online payments that exceed 200 dollars per day. The same security measures must also apply to transactions above 500 dollars per week and 1,000 dollars per month, or their naira equivalent.

In the circular, the regulator emphasized that ATM cash withdrawals must continue to comply with approved withdrawal limits. It also directed banks to clearly disclose applicable exchange rates and related charges to customers before completing any transaction. The exchange rate, the CBN noted, must be market-driven and aligned with the prevailing official rate. Transactions should only proceed after customers have accepted these terms, with verifiable evidence retained.

Furthermore, banks and non-bank acquirers were told to maintain sufficient liquidity to settle foreign card transactions promptly, while ensuring that merchants receive settlements in local currency. To strengthen oversight, the CBN mandated enhanced transaction monitoring to identify unusual or suspicious usage patterns involving foreign-issued cards across all terminals.

The regulator also called for stronger know-your-customer and anti-money laundering controls, particularly for merchants that regularly process foreign card payments. Merchants must ensure that card-present transaction receipts are properly signed and that valid identification is requested where transactions raise concerns.

In addition, the CBN stated that all card acceptance devices should support contactless payments for low-value transactions. Consumer complaints related to foreign card usage must be handled within approved timelines.

On dispute management, the apex bank directed acquirers to establish robust and auditable chargeback processes that align with card scheme rules and existing CBN guidelines. These processes should cover timely case intake, evidence gathering, refunds, and post-incident analysis. Acquirers must also retain relevant transaction records, including terminal approval slips, signed receipts, and service descriptions, for at least 12 months. Such records must be retrievable within 24 hours when requested.

To reinforce compliance, banks and acquirers are required to provide quarterly training for merchants and agent networks on dispute resolution and chargeback procedures.

The CBN also instructed financial institutions to report suspicious transactions involving foreign cards to the Nigeria Financial Intelligence Unit and to recalibrate fraud monitoring systems to reduce unnecessary declines on legitimate transactions.

In closing, the regulator encouraged tourists and Nigerian returnees who experience difficulties using foreign-issued cards in Nigeria to report their complaints to the CBN Consumer Protection Department via complaint4cbn@cbn.gov.ng.