The Central Bank of Nigeria (CBN) has increased the issuance fee for ATM cards by 50% whilst also scrapping the monthly maintenance fee charged by banks on the cards.
The apex bank raised the card issuance fee by 50% from N1,000 to N1,500, according to a Vanguard report.
Additionally, the CBN has scrapped the N50 monthly charges for Naira Debit/Credit Card maintenance which usually includes a 7.5% Value Added Tax (VAT). Meanwhile, customers with foreign currency-denominated cards will continue paying $10 annually as maintenance fee.
The Central Bank also noted that ATM transaction costs will now be borne by the Merchant and not the customers.
Per the statement;
“All card transactions done by cardholders at a merchant location shall be free of charge to the cardholder, i.e. the MSC shall be borne by the merchant. The MSC payable by a merchant (0.5 percent) subject to a cap of N10,000 shall be the same irrespective of the technology or payment methods.”
The bank explained that the policy review comes amid efforts to accelerate the adoption of innovative financial services in Nigeria. This is expected to drive increased financial inclusion with micropayments and transactions.
