By Favour Nnabugwu
The Central Bank of Nigeria (CBN) has reviewed its guidelines for the operation of electronic payment channels in the country and has directed banks and payment service providers to resolve customers’ chargeback complaints on electronic channels within 24:hours from 8th June 2020.
The apex bank stated this in a circular issued on Sunday and endorsed by Musa I. Jimoh, its Director of Payments System Management.
According to the directive, addressed to all banks and payment service providers, the reversal of failed on-us ATM transactions (failed transactions when customers use their cards on their bank’s ATMs) shall be immediate from the current timeline of 3 days.
However, in a situation where an instant reversal fails because of technical issues of system glitches, the timeline for manual reversal shall not be more than 24 hours.
Similarly, the timeline for the reversals of failed not-on-us ATM transactions (failed transactions when customers use their cards on other banks’ ATMs) shall not exceed 48 hours from the current 3 to 5 days.
The central bank added that refunds on disputed/failed POS/Web transactions shall be effected within 48 hours from current 5 days.
“All Switches are to adjust the chargeback cycle in their dispute resolution systems to 24 hours from 72 hours.
“All Acquirer-initiated refunds shall henceforth be initiated by all banks within 48 hours.
“Processors are to provide daily settlement reports latest 8.am on T+1 basis.
“NIBSS shall send daily reports on reversals to processors on or before 10pm each day,” the document read in part.
The CBN also ordered banks in the country to clear their backlogs of all ATM refunds within one week and within two weeks for POS & Web customers’ refunds respectively with effect from 8th June 2020.