The Central Bank of Nigeria (CBN) has set May 1st 2017 for
implementation of the new interchange fee regime for operators in the
payment cards industry.
In a circular dated November 1st but
posted on its website yesterday, the apex bank stated that as from that
date, the interchange fee will replace the Merchant Service Charge
(MSC), adding that Merchants and Acquirers will be required to negotiate
the MSC, while it (CBN) will control the interchange fees paid by
Acquirers to the Card Issuer and other regulated service providers.
Director,
Banking & Payments System Department, Mr. Dipo Fatokun, who signed
the circular, stated that the interchange fee was introduced as a result
of the limitations of the MSC regime and the objectives of the Payments
System Vision 2020.
He said: “CBN hereby gives a period of six months, starting from
November , 2016 to stakeholders to sensitise their merchants on the
changes expected, and for card schemes to reconfigure their systems to
the new pricing structure.
The interchange regime will commence live operations effective 1st May, 2017.”
The
CBN Director noted that the introduction of the new pricing regime
would bring about: “even greater payment card issuance and utilisation,
investment in loyalty programmes and the expansion of acquirer network
infrastructure across the country.”
He stated that modalities for
aspects of the implementation of the new regime would be developed and
communicated by the Nigeria Interbank Settlement System (NIBSS), within
three months from the date of the circular .