Regulatory Alerts2012-10-29 | BPS/DIR/GEN/CIR/01/011Revised Guidelines on Stored Value/Prepaid Card Issuance and Operations
The Central Bank of Nigeria (CBN) has established guidelines for the issuance and operation of stored-value and prepaid cards in Nigeria. These guidelines aim to promote transparency, security, and consumer protection in the use of such cards. Key highlights from the CBN guidelines include: 1. Issuers must obtain minimum Know Your Customer (KYC) information for each cardholder, which includes their name, phone number, and address. For stored-value cards, this information must be validated. 2. The maximum amount that can be loaded on a stored-value card per day is N50,000, with a maximum balance of N250,000 at any time. 3. Prepaid cards issued will operate under the same KYC requirements as stored-value cards, but loadable limits and daily balances are determined by the issuing bank. 4. The maximum withdrawal and spending amount for prepaid cards is set by the issuing bank. 5. These guidelines apply to both individual and corporate cardholders, with full KYC required for corporate customers. 6. All stored-value and prepaid cards must be EMV-compliant (Chip and PIN enabled). 7. The CBN's Guidelines for Transaction Switching and Card Issuance and the POS Card Acceptance Services guidelines also apply to stored-value and prepaid cards, unless otherwise specified in these guidelines.