Bangladesh Bank has set per transaction ceiling of Tk 3,000 for the credit cards which would be operated in contactless system also known as near field communication system.
NFC enables a cardholder to pay bills just by bringing a card within four centimetres of a point-of-sale machine of a merchant instead of swiping or inserting the card into the POS machine.
To facilitate the process, the BB on Thursday issued a circular relaxing the second factor authentication or personal identification number condition for transactions through credit cards.
The central bank in its circular, however, said that banks would be allowed to operate NFC technology for only EMVCo complaint credit cards.
EMVCo facilitates worldwide interoperability and acceptance of secure payment transactions and it accomplishes this by managing and evolving the EMV (Europay, MasterCard, and Visa) specifications and related testing processes.
The central bank in its circular said dependency on card-based transaction across the country has been on the rise with the evolution of information and communication technology.
With a view to encouraging people to use electronic payment system and continuation of the ICT sector’s progress, the central bank reviewed the per transaction highest ceiling of contactless payment service and the mandatory provision related to personal identification number and second factor authentication, the BB circular said.
To attain the objective, the central bank issued the circular keeping other requirements of the ‘ICT Security for Banks and Non-Bank Financial Institutions’ unchanged, it said.
Although the central bank relaxed personal identification number requirement or second factor authentication requirement, banks will have to inform clients immediately after each transaction through SMS alert.
Customers, however, will have to follow the second factor authentication or give personal identification number for the transaction beyond the limit by using such credit cards.
The central bank asked banks not to activate NFC transaction in credit cards without customers’ consent and the customers must be allowed by banks to complete transaction under the second factor authentication process below Tk 3,000.
The BB circular also asked banks to use ‘contactless logo’ on NFC cards and POS machines and at merchant points with a view to creating awareness among customers and distinguishing the merchant points that accept NFC cards from others.
Banks were also asked to open more than one window for receiving complaint or information from customers and to take immediate measures regarding the complaints.