The Central bank of Nigeria has identified the predominant use of single messaging format for PoS transactions as an obstacle to the use of pre-authorisation as a mode of payment in Nigeria.
In a circular on, ‘Pre-authorisation of cards in Nigeria,’ it stated that in order to enable pre-authorisation and sales competition of card transactions, the CBN gave new directives.
It stated that all merchant acquirers were required to obtain Acquirer Device Validation certification or the applicable testing completion notification from CBN licensed card schemes.
By this directive, it added, all PoS terminals must have the capability for transaction pre-authorisation and sales completion.
“PTSA (NIBSS) to ensure that only banks that have conducted and obtained PoS terminal validation certificate for pre-authorisation and sales-completion from the relevant card schemes, had their PoS terminals registered on the Central Terminal Management System,” it stated.
Card schemes were also required to provide online simulators for acquirers and issuers to test their systems when necessary.
This circular takes immediate effect, but with a deadline of July 31, 2020 for full compliance after which appropriate sanctions would be imposed for contraventions and non-compliance, it stated.