Chargebacks generally mean the reversal of a payment or request
for repayment in a transaction previously settled or remitted. This
reversal is usually done by the issuing bank, payment scheme
provider or other financial institution. The reasons for a
chargeback may include non-authorization of the transaction amount
by the cardholder, an error in transaction details, duplicated
transaction, non-receipt of goods and services purchased or any
number of other reasons.
In 2016, the Central Bank of Nigeria's ("CBN")
issued Guidelines on the Operations of Electronic Payments Channels
in Nigeria ("Guidelines"). The Guidelines provided for
chargeback period on failed transactions, and on 29th May 2020, the
CBN revised it, informing all stakeholders by its Circular No.
PSM/DIR/ CON/ CWO/O7/127 that it had issued revised Guidelines to
that effect (the Revised Guidelines").
