The Central Bank of Nigeria CBN released the Guidelines on Web acceptance services as a means of providing a regulatory framework for supervising the safe operation of Web-based card acceptance services in furtherance of e-commerce and digital payments.
This article will be specifically focused on the provisions of the Guidelines regarding :-
– The applicability scope of the guidelines
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– The objectives of the guidelines
– The stakeholders of the Web-based card acceptance value chain and their roles and responsibilities.
– Consumer Protection/Dispute Resolution
– Charge back period for Web-based transactions
What is the applicability scope of the Web-based card transactions guidelines?
The guidelines shall be applicable to all forms of transfers of monetary value on the website of a merchant or a payment aggregator in fulfillment of consideration for the purchase of goods and services on the internet.
What are the objectives of the guidelines?
The objectives of the guidelines are :-
- To provide minimum standard requirements for the processing of transactions on the web.
- To promote the safety and effectiveness of web acceptance services and thereby enhance user confidence in the service.
- To identify the roles and responsibilities of stakeholders.
- To encourage the development of effective, low risk, low cost and convenient payment and financial services to customers and businesses through the internet.
Which entities are named by the guidelines as stakeholders in web-based card transactions and what are their respective roles and responsibilities?
- Issuer
Roles and Responsibilities
– To be responsible for the issuance of the cards. Only licensed deposit taking banks shall serve as issuers of payment cards.
– To provide additional security measures to cardholders who intend to utilize their cards for transactions via the web.
– To maintain internal records over a minimum period of 7 years to enable audit trails on card-related transactions.
– To not enable a card for web transactions unless requested by the customer.
- Merchant (Website owner)
Roles and Responsibilities
– To ensure that the terms and conditions for its products and services are properly communicated and conspicuously displayed on its website.
– To ensure that it cooperates with the acquirer in implementing appropriate security measures.
– To provide the customer with clear instructions on the process for making payments on its website.
- Payment gateway providers
Roles and Responsibilities
– To provide services with respect to the processing of online payment transactions related to the sale of goods and/or services.
– To be responsible for the security of the data related to the payment instrument that is possessed, stored, processed or transmitted on behalf of cardholders.
– To hold all forms of customer data securely and take responsibility for the security of the data.
- Customers/Cardholders
Roles and Responsibilities
– To guard their cards, PINs , and hardware tokens with utmost care.
– Immediately notify the issuer if the card, PIN, or token is lost or compromised.
- Acquirer
Roles and Responsibilities
- To be responsible for engaging and managing the web payment gateway provider.
- To test the website’s payment integration and ensure that sensitive customer data are not retained on the merchant’s website.
- To acquire all transactions done on the website of merchants acquired by them.
- The acquirer shall sign an agreement for acceptance and payment via the web channel with the merchant.
What are the provisions of the guidelines on the twin issues of Consumer Protection/Dispute Resolution?
The guidelines provide that any dispute, controversy or claim arising out of it or the breach, termination or invalidity thereof shall be settled in accordance with the CBN dispute resolution mechanism and if unresolved may be referred to an arbitrary panel as provided under the Arbitration and Conciliation Act.
What is the charge back time frame for failed web transactions under the guidelines?
Refunds on disputed or failed Web transactions shall be treated within 48hours.