CBN sets N15,000 limit per contactless transaction — Here’s what you need to know

The Central Bank of Nigeria (CBN) has limited the amount per transaction to N15,000 on contactless payments.

The apex bank also placed a N50,000 daily limit on contactless payments either through bank accounts or digital wallets.

The CBN disclosed this in a circular titled, “Transaction Limits on Contactless Payments” signed by its Director, Payment System Management Department, Musa Jimoh.

What is Contactless Payment?

A contactless payment is a wireless financial transaction in which the customer makes a purchase by moving a security token like a credit/debit card in close proximity to the vendor’s point of sale (POS) reader.

CBN described the contactless payment to involve “the consummation of financial transactions without physical contact between the payer and the acquiring devices, has been identified as an innovative payment option for safe and efficient conduct of low-value and large-volume payments.”

CBN in its directive, stated; “Following the issuance of the Guidelines on Contactless Payments in Nigeria and in cognizance of the risks associated with contactless payments, the Bank hereby defines transaction limits above which verification and authorization are required.

“Transaction limits for contactless payments through accounts/wallets in Nigeria shall be as follows: Transaction limit maximum amount is N15,000, and daily cumulative limit maximum amount is N50,000.

“Higher-value contactless payments are transactions that exceed the above stated limits and shall require appropriate verification and authorization.

“For these transactions, existing Know Your Customer (KYC) requirements and limits on the electronic payment channels shall apply.

“Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology. Please be guided accordingly.”

It added: “Contactless technology is a technology that enables an alternative payment method whereby payment instruments are used without physical contact with devices. Contactless technology in payments provides easy, convenient, and efficient cashless options for users.

“Examples of contactless payment instruments include pre-paid, debit and credit cards, stickers, fobs, wearable devices, tokens and mobile electronic devices. Contactless-enabled payment terminals interact with contactless payment devices to facilitate payments.”