The Central Bank of Nigeria has directed Deposit Money Banks to
henceforth destroy Automated Teller Machine cards trapped in their ATM terminals.
The CBN also gave banks 24 hours to reverse debit entries arising from
failed transaction attributable to system-related issues.
The directives were contained in a 14-page ‘Guidelines for card
issuance and usage in Nigeria’ released by the Banking and Payment System
Department of the CBN on Tuesday.
The CBN guidelines read, “Any trapped card in the ATM shall be rendered
unusable (by perforation) by the acquirer and returned to the issuer on the
next working day.
“All debit entries arising from failed transactions attributable to
system-related issues must be auto-reversed. Where auto reversal is not
feasible, manual reversal must be carried out within 24 hours.”
“The security of the payment card shall be the responsibility of the
issuer and the losses incurred on account of breach of security or failure of
the security mechanism shall be borne by the issuer, except the issuer
establishes security breach on the part of the card holder.”
Consequently, banks are to ensure ATM cards are issued from card schemes
that have demonstrable fraud management systems.
Specifically, the CBN guidelines said banks were to ensure they deploy
“robust fraud monitoring tools that have the capacity to monitor customer
transaction trends, real -time operations and option of blocking suspicious
transactions.”
The guidelines further read, “Liability shift rules shall apply when
Nigerian issued EMV cards are used fraudulently on EMV compatible terminals
where magnetic stripe fallback is enabled, or at non-EMV compatible terminals
where the transactions is read as a fully magnetic stripe transaction.
“Card issuers are required to monitor their card production procedures
to ensure that their EMV cards are properly produced. The issuer shall take
full liability for any fraud from a fall back transaction that occurred as a
result of improperly produced chip card.”
The central bank said the new guidelines were introduced to enable
financial institutions and card processors to upgrade their card operations to
ensure optimum security and customer friendliness, among others.
In the application of customer fees for services rendered, banks were to
be guided in their operations by the CBN’s ‘Guide to bank charges’.
“Card issuers are expected to continuously educate cardholders on the
following, among other things: security tips for safeguarding cardholder
information; costs and charges associated with owning and using a payment card;
contact numbers to the card issuer’s 24/7 contact centre in order to report
cardholder issues or problems; dispute resolution process across the bank’s
products and channels,” the CBN said
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Useless policy, are they (CBN) not aware that people paid 4 those ATM? Or they want to create avenue for banks to generate money. If they cannot gaurantee security of those trapped ATMS then they shuld stop the usage so that we can go back to days of cheques and Passbooks.we ar good in copying but not good in implimetation. ATM are being sucessfully used in other part of the world one wondered why Nigeria's case is different.
ReplyDeleteIt is only in Nigeria that ATM gives you money before your card. In Europe and other countries your card is returned 1st before your money. The banks know this but because they are thieves , they woun't adopt it. If your card comes out it shows the transaction is complete and your cash must follow
ReplyDeleteIf a card is trapped who's fault is it, if a tranctn fail d card shld return n nt trapped, some of d ATM machine need to be check cos d re gud in trapn ppl card.
ReplyDeleteLol hahahaha
ReplyDelete