The Central Bank of Nigeria (CBN) released its guidelines on Automated Teller Machine (ATM) operations with a view to creating a set of standards regarding :-
– Technology specification
– ATM operations
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– ATM security
– ATM maintenance
– Regulatory monitoring
– Dispute Resolution
What are the standards set by the guidelines on ATM technology and specifications?
The guidelines state that all ATM deployers/acquirers shall comply with payment and industry data security standards (PCI DSS).
What are the standards set by the guidelines regarding ATM operations?
Some of the operating standards set by the guidelines are :-
- All ATM points shall be able to dispense all denominations of Naira.
- For deposit taking ATMs, acceptable denominations shall be displayed by the deployer.
- All ATM terminals shall be Levels 1 & 2 EMV compliant at a minimum and shall be upgraded from time to time, to comply with the latest version, within 12 months of release of the version.
- All ATM systems shall have audit trail & logs capabilities comprehensive enough to facilitate investigations, reconciliations & dispute resolutions.
- Card readers shall be identified by a symbol that represents the card, identifies the direction for which the card should be inserted into the reader, and which shall accept cards horizontally with the chip upwards and to the right.
What are the provisions of the guidelines on ATM deployment?
The guidelines state on the issue of ATM deployment that :-
- All banks or independent ATM deployers may own ATMs, however such Institutions must enter into agreements with a card scheme or a scheme operator or their designated settlement agent for acceptance and settlement of all transactions at the ATM.
- All ATM transactions in Nigeria shall be processed by a Nigerian company operating in Nigeria as acquirer-processor.
- No card or payment scheme shall compel any issuer or acquirer to send any transaction outside Nigeria for the purpose of processing, authorizing or switching if the transaction is at an ATM or at any acceptance device in Nigeria and the issuer is a Nigerian bank or any other issuer licensed by the CBN.
- Stand-alone ATMs are not allowed.
What are the provisions of the guidelines on ATM operations?
The guidelines provide that a bank or independent organization that deploys an ATM terminal for the use of the public shall ensure that :-
- ATM terminal declines or inoperability due to technical faults do not last more than 72 hours consecutively & where this is not practicable, customers shall be duly informed by the deployer.
- The help desk contacts are adequately displayed at the ATM terminals.
- All ATM charges are fully disclosed to customers.
- Cash retraction shall be disabled on all ATMs.
- Change of PIN services are provided to customers free of charge.
What are the provisions of the guidelines on ATM Maintenance?
The guidelines provide that regarding ATM Maintenance :-
- Notices are to be displayed at the ATM for planned maintenance period and disruption to service.
- An ATM maintenance register or log is kept properly.
- All ATMs and cash in the machines are insured.
- ATMs must be physically inspected by banks and independent organizations at least fortnightly.
What are the provisions of the guidelines on ATM security?
The guidelines provide that regarding security :-
– Every ATM shall have cameras which shall view & record all persons using the machines as well as every activity at the ATM, including but not limited to card insertion, transaction selection, cash withdrawal, card taking, etc.
– Where a surveillance camera is used, it should be kept secret to avoid illegal removal or damage or compromise.
– Networks used for the transmission of ATM transactions must be demonstrated to have data confidentiality & integrity.
– ATMs should not be placed outside buildings unless such ATM terminals are bolted to the floor and surrounded by structures to prevent removal.
What are the provisions of the guidelines on Dispute Resolution?
The guidelines provide that the reversal of failed on-us ATM transactions (when customers use their cards in their bank’s ATM) shall be instant & 24 hours maximum where instant reversal fails due to a technical or system glitch issue.
The refund timeline for failed not-on-us ATM transactions when customers use their banks on other Bank ATM terminals shall not exceed 48 hours.