Trending

CBN Issues Regulatory Framework for Non-Bank Acquiring in Nigeria by Agwu, C. J

In furtherance of its mandate to promote a sound financial system and facilitate the development of electronic payment system in Nigeria the Central Bank of Nigeria has issued the Regulatory Framework for Non-Bank Acquiring in Nigeria

The Framework dated May 25, 2021 and addressed to all deposit money banks, payments service providers and other financial institutions in the country, sets out the procedures for the operation of Non-Bank Merchant Acquiring in Nigeria, including the rights and obligations of the parties involved in the process. It also compels Non-Bank Merchant Acquirers to meet the minimum standards of operations, as approved by the Bank.

This Regulatory list Participants to be  i. Non-Bank Acquirer,  ii. Settlement Bank/Sponsor Bank,  iii. Merchant’s Deposit Money Bank,  iv. Card Schemes,  v. Other Payment Schemes, and the vi. Nigeria Central Switch (NCS

Only Licensed Switching and Processing Companies, other than Acquiring Banks, will be allowed to process and settle transactions on behalf of merchants in Nigeria under the framework. The Central Bank shall approve non-Bank Acquirers, as it deems necessary, from time to time.

The CBN requirements to provide Non-Bank acquiring in Nigeria are that the company shall be a CBN-licensed Switching Company or any other company as approved by the Bank. In addition, the company shall provide the following documentation, namely Evidence of engagement with a card scheme, Due Diligence and Merchant Onboarding Process, Merchant Risk Monitoring Framework, Sponsorship letter from one Settlement Bank, Draft merchant agreements, Details of its settlement arrangements,  Service Level Agreement (SLA) with Settlement Bank, Business Continuity Plan and any other document(s) as may be required by the Bank.

You can download the Regulatory Framework for Non-Bank Acquiring in Nigeria HERE

Leave a Reply

Send in Your Business News to BusinessTrumpet News!