Business
CBN gives banks 2 weeks to refund debits on failed ATM, PoS transactions
BY NICHOLAS ABE
The Central Bank of Nigeria (CBN) has given all banks two weeks within which to resolve backlog of issues that have to do with refunds to customers with respect to ATM, POS and Web transactions.
The apex bank said the directive which takes effect June 8, 2020 is to enhance service quality by the banks, especially as it affects quick refunds when customers experience failed transactions, dispense errors or disputes, timelines for reversals and/or resolution of refund complaints on electronic channels.
In a statement issued June 1, 2020 and signed by the banks Director Corporate Communications, Isaac Okorafor, the CBN said: “Failed ‘On-Us’ ATM transactions (when customers use their cards on their bank’s ATMs) shall be instantly reversed from the current timeline of three (3) days.
“Where instant reversal fails due to any technical issue or system glitch, the timeline for manual reversal shall not exceed 24 hours.”
READ: CBN recovers over N60b excessive charges on bank customers
The statement added that, “Refunds for failed ‘Not-on-Us’ ATM transactions (where customers use their cards on other banks’ ATMs) shall not exceed 48 hours from the current 3-5 days.”
Also, the resolution of disputed/failed PoS or Web transactions “shall be concluded within 72 hours from the current five (5) days.”
Failure to adhere to the above service level agreement will attract appropriate penalties, the CBN Director, Payments System Management Department, Musa I. Jimoh, said.
Okorafor said that key service providers in the Nigerian payments system have also committed to establish an integrated dispute resolution platform for the industry and enhance their payment system infrastructure and processes to reduce incidences of transaction failure.
“Members of the public are therefore requested to refer to the updated guidelines for the Operation of Electronic Payment Channels on the Bank’s website (www.cbn.gov.ng) for further details,” the statement further stated.