Regulatory Alerts2010-02-17 | BOD/DIR/GEN/CIR/01/025Guidelines on Stored Value Prepaid Card Issuance and Operations
The Central Bank of Nigeria (CBN) has issued guidelines on the issuance and operations of stored-value/prepaid cards. Only licensed deposit-taking banks or financial institutions with clearing capacity can issue these cards. Transactions involving such cards must comply with Nigerian Financial Intelligence Unit reporting requirements. Outstanding balances can be refunded upon request. Issuing banks or institutions cannot deduct fees from the balance value of prepaid cards, and must maintain a Card Management System for effective management of stored-value/prepaid card issuance and operations. The guidelines also require all stored-value/prepaid cards to be EMV-compliant and adhere to existing CBN guidelines for transaction switching and card issuance, unless otherwise specified in these guidelines.