spot_img
spot_img
27.2 C
Lagos
Saturday, July 2, 2022

Banks must Now Provide Instant Refund for Failed ATM Transactions – CBN

Must read

The Central Bank of Nigeria (CBN) has reviewed its Guidelines for the Operation of Electronic Payment Channels and now requires banks and payment service providers to instantly resolve customer chargeback complaints of failed on-us ATM transactions.
On-us ATM transactions refers to when customers use their cards on their bank’s ATMs.
The previous timeline was 3 days.
“However, where instant reversal fails due to technical issues of system glitches, the timeline for manual reversal shall not exceed 24 hours,” the CBN said in a circular dated, May 29,2020.
The CBN has also directed that the timeline for refunds on failed not-on-us ATM transactions when customers use their cards on other bank’s ATMs shall not exceed 48 hours from current 3-5 days.

The revised timelines are effective June 8,2020.
Participants in the payments system are also to comply with the following additional requirements, according to the CBN :
a) All Switches are to adjust the chargeback cycle in their dispute resolution systems to 24 hours from 72 hours
b) All Acquirer-initiated refunds shall henceforth be initiated by all banks with within 48 hours.
c) Processors are to provide daily settlement reports latest 8 a.m. on a T+1 basis.
d) NIBSS shall send daily reports on reversals to processors on or before 10 pm each day.
All banks are to clear backlog of all ATM customer refunds within one (1) week and within two (2) weeks for Point of Sale (POS) & Web customer refunds effective June 8, 2020, the CBN said.
Failure by banks to adhere to the above service level agreements will attract appropriate penalties, the CBN said.
“The CBN will continue to monitor developments and will issue appropriate directives in its quest to improve quality and efficiency in the Nigerian payment system,” the statement signed by Musa Jimoh, Director, Payments Systems Management Department, said.

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -spot_img

Latest article