Customers who have their card issued by a Deposit Money Bank (DMB) in Nigeria may be expected to pay at least $6.00 (1000.00 NGN) each time their card got trapped in the ATM; this move has become necessary given Central Bank of Nigeria (CBN) new guideline on Card Issuance and usage.
The CBN guideline read, “Any trapped card in the ATM shall be rendered unusable (by perforation) by the acquirer and returned to the issuer on the next working day”. Explaining the rational for the new guideline, the Director, Banking and Payment System Department, Mr. Dipo Fatokun alluded this is meant to augment non-disclosure on cardholder information to the minimum.
Fatokun explained- if information such as the Primary Account Number (PAN) is disclosed, it could be used for Card Not Present’ transactions. Card Not Present transaction normally happen over the web in which case you only need the information on the card (PAN) and don’t need the PIN (PAN is the sixteen digits information displayed on the customer card).
Some of our DMB sources has however asserted this move may be retrogressive as most banks now have Securecode (Mandatory second factor authentication other than the PAN) enabled for their CNP transactions.