CBN gives banks new deadline on refund of debits from failed ATM, PoS transactions

OBINNA EZUGWU

The Central Bank of Nigeria (CBN) has given banks in the country 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 bank gave the directive in a statement by its Director of Corporate Communications, Isaac Okorafor on Monday.

The directive, according to the statement, takes effect June 8, 2020 and is aimed at enhancing 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.

“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,” the statement said.

“Where instant reversal fails due to any technical issue or system glitch, the timeline for manual reversal shall not exceed 24 hours.”

The bank 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.”

According to Okorafor, 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.

Meanwy, Musa I. Jimoh, the bank’s Director, Payments System Management Department warned that failure to adhere to the above service level agreement will attract appropriate penalties.