CBN raises ATM card fee to N1,500, removes maintenance charges

THE Central Bank of Nigeria (CBN) has revised the cost of issuing and replacing debit and credit cards, increasing the fee from N1,000 to N1,500. The adjustment forms part of an updated guide on bank charges applicable across financial institutions.

According to a circular released on Thursday titled ‘Guide to Charges by Banks and Other Financial Institutions,’ the new fee will take effect from May 1. It applies to standard ATM cards issued by banks and other CBN-regulated entities nationwide.

In a notable shift, the regulator eliminated maintenance fees on naira-denominated debit and credit cards, while confirming that virtual cards will continue to be issued at no cost to customers.

The revised guideline replaces the framework introduced in January 2020 and covers all institutions under the CBN’s supervision, including commercial banks, microfinance banks, payment service banks, and mobile money operators.

READ ALSO: Value of ATM transactions nearly triples despite rising charges

The apex bank said the updated charges follow consultations with industry stakeholders and are designed to improve clarity and uniformity in the financial system. It added that the framework is aimed at boosting transparency, encouraging competition, and ensuring standardisation across banking services.

Under the new rules, customers will not be charged for point-of-sale (POS) payments, as merchants are responsible for the associated service fees. Businesses, however, will pay a merchant service charge of 0.5 percent per transaction, capped at N10,000 regardless of the payment channel used.

On transaction alerts, the CBN stated that SMS notifications for customer-initiated transactions may still attract fees strictly on a cost-recovery basis, while email alerts must be provided free of charge.

The regulator retained account maintenance charges on current accounts but clarified that such fees remain negotiable and subject to a capped rate, with a phased reduction plan already in place.

As part of the transition, current account maintenance fees will be limited to N0.5 per mille in 2026 before being completely eliminated by 2027.

For ATM withdrawals, customers using another bank’s machine will pay N100 for every N20,000 withdrawn at on-site ATMs. Off-site machines may attract an additional surcharge of up to N500 per transaction, provided such charges are disclosed at the point of use.

Electronic transfer fees remain unchanged: transfers of N5,000 and below are free, transactions between N5,000 and N50,000 cost N10, while those above N50,000 attract a N50 charge.

The CBN also reiterated that banks must only apply non-credit-related charges where sufficient funds exist in a customer’s account, deferring any outstanding fees until the account is funded.

READ ALSO: CBN asks banks to expand ATMs deployment, resolve failed transactions instantly

In addition, financial institutions are required to clearly inform customers whenever a charge is negotiable, both at the start of a transaction and whenever necessary.

The circular further stated that account reactivation and several routine services will remain free, adding that any new fee or service not listed in the guide must receive prior approval from the central bank.

Overall, the revised framework is part of broader efforts by the CBN to enhance consumer protection, promote fairness in pricing, and standardise banking practices across Nigeria.