The central bank has reviewed the the deadline for Chargeback on ATM, POS and online payments methods /gateway back to 16hrs as against the previous 24hrs response effective from 9th June. 

A mail sent from Paystack, the biggest online payment gateway read that "Due to new requirements by the Central Bank of Nigeria (CBN), we’d like to inform you that the chargeback resolution deadline will be reduced from 24 hours to 16 hours, starting tomorrow Tuesday 9th June, 2020." 

What does the new revised chargeback by CBN mean for your business?

A chargeback claim is a report that a customer makes to their bank against a business, stating that they didn't receive value for a transaction.


When customers submit a chargeback claim, CBN requires that businesses provide proof of delivery of service within a certain period of time, otherwise the amount is automatically refunded to the customer.

Previously, we required businesses to respond to chargeback claims via the Paystack Dashboard within 24 hours. Given the new requirements, however, the deadline has now been reduced to 16 hours.

You might notice that the CBN press release states a maximum resolution time of 72 hours. Why then are we setting a deadline of 16 hours? This is because our banking partners, in pursuit of meeting CBN's 72-hour requirement, have independently set much more stringent deadlines. We must update our timelines in response to ensure we're able to meet these more stringent requirements.

As business owners ourselves, we deeply understand that this places a strain on your business, and we sincerely empathise. The rules are intended to strengthen consumer protections for buyers.

On PayStack "To make the process easier, we’ll send you well-timed reminders when you have a pending chargeback claim so you can resolve it ASAP. Please take a moment to update the email address to which we should send chargeback notices. You can find the Chargeback Email field under the Business tab of the Setting page.

Please also review this helpful guide on how to resolve chargebacks, which includes examples of the best kinds of evidence to submit as proof of value. "

" We'll soon include the ability to quickly submit proof of value via the Paystack Merchant app.

(For developers) Please remember that you can leverage the Paystack API to integrate an ideal disputes process right into your business' internal tools. Here is more information about this on the Paystack Developer Documentation"

When does the CBN chargeback take effect?

This change, as stated in the CBN circular, technically takes effect on all payment platforms today. However, to ensure that you can adjust as best as possible, we'll be enforcing the new 16 hour chargeback deadline beginning tomorrow, Tuesday 9th June, 2020.