New draft policy shifts PoS costs to merchants, offers free virtual cards, and targets wider financial inclusion

The Central Bank of Nigeria (CBN) has raised the cost of issuing and replacing ATM debit and credit cards by 50 percent, increasing the fee from N1,000 to N1,500.

In a move likely to ease recurring costs for bank customers, the apex bank also abolished the N50 monthly maintenance charge previously imposed on naira-denominated debit and credit cards. However, holders of foreign currency cards will continue to pay an annual maintenance fee of $10.

The changes are outlined in the CBN’s exposure draft of the 2026 Guide to Charges by Banks and Other Financial Institutions (OFIs), which introduces sweeping adjustments to banking fees and policies.

Under the revised framework, customers will no longer bear charges for ATM transactions conducted at merchant Point of Sale (PoS) terminals. Instead, these costs will be fully absorbed by merchants, while cardholders will continue to enjoy free payments at merchant locations.

The draft also sets the Merchant Service Charge (MSC) at 0.5 percent per transaction, capped at N10,000, regardless of the payment method or technology used.

While standard debit and credit card fees are fixed at N1,500, the CBN noted that charges for premium or hybrid cards will be subject to negotiation. In addition, virtual cards will be issued at no cost, signaling a push toward digital banking solutions.

According to a circular signed by Rita Sike, Director of the Financial Policy and Regulation Department, the review is part of broader efforts to strengthen the financial system, enhance transparency, and stimulate innovation.

The CBN said the updated guidelines are designed to expand access to financial services, encourage the development of new products, and improve regulatory oversight. It also aims to drive financial inclusion and accelerate the adoption of electronic payment channels, particularly by reducing costs for low-value transactions and accommodating emerging players in the financial ecosystem.