CBN Orders Banks To Allow ATMs, POS Terminals for Foreign Card Transactions

• The CBN has directed Nigerian banks to reconfigure ATMs, PoS and virtual terminals to accept international cards
• The apex bank also noted that multi-factor authentication is required for foreign card transactions above $200 daily
• Card acceptance devices must support contactless payments for low-value transactions

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has directed banks and non-bank acquirers to reconfigure all automated teller machines (ATMs), point-of-sale (PoS) terminals and virtual payment platforms to seamlessly accept foreign-issued payment cards across the country.

The directive was captured in a circular signed by Rita Sike, the Director of the Financial Policy and Regulation Department.

The apex bank noted that the directive is aimed at ensuring uninterrupted and efficient transactions for users of international cards.

Under the new guidelines, the apex bank said all card acceptance devices must be compliant with card association standards, possess the required certifications and be configured to work with Nigerian acquirers.

Banks to allow dollar withdrawal

As part of measures to strengthen transaction security, the CBN mandated banks and non-bank acquirers to implement multi-factor authentication for foreign card transactions exceeding $200 per day.

The same authentication requirements will apply to transactions above $500 per week and $1,000 per month, Vangard reports.

Part of the circular reads:

“In this regard, banks and non-bank acquirers shall implement multi-factor authentication for all withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month (or its equivalent)."

For ATM transactions, the regulator stressed strict compliance with approved cash withdrawal limits.

It also instructed acquirers to clearly disclose applicable exchange rates, described as market-driven and based on the prevailing official rate, as well as all associated charges. Transactions were to be completed only after customers had accepted the terms.

The CBN further directed acquirers to maintain sufficient liquidity to settle transactions and ensure merchants are paid in local currency (naira). Banks were also asked to deploy transaction monitoring tools to detect unusual usage patterns involving foreign cards and to strengthen know-your-customer (KYC) and anti-money laundering (AML) controls for merchants handling such payments.

Merchants are to be required to ensure card-present transaction receipts are properly signed and to request valid identification where transactions appear suspicious.

More directives to banks

In addition, the apex bank said card acceptance devices must support contactless payments for low-value transactions, while consumer complaints must be resolved within approved timelines.

The circular also emphasised chargeback management, directing acquirers to implement “robust, auditable” processes aligned with card scheme rules and CBN guidelines, including timely dispute resolution, evidence collation and refunds.

Acquirers were instructed to retain transaction records including terminal approval slips, signed receipts and item or service descriptions for at least 12 months, with the ability to retrieve such records within 24 hours upon request.

Also there will be quarterly training for merchants and agent networks on dispute handling and chargeback processes was also mandated.

The CBN further directed banks and acquirers to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU) and recalibrate fraud-monitoring systems to minimise false declines on legitimate transactions.

Tourists and Nigerians returning from abroad who experience difficulties using foreign-issued cards were advised to report such incidents to the CBN’s Consumer Protection Department via complaint4cbn@cbn.gov.ng.

CBN announces 4 new cash withdrawal, deposit rules

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has revised its cash withdrawal and deposit rules, effective January 1, 2026.

Under the new guidelines, banks and other financial institutions are expected to comply with the updated cash-related rules, which overhaul several existing policies.

One of the major changes is the removal of cumulative deposit limits, meaning customers can now deposit any amount without paying excess deposit fees.