DEFINITION OF TERMS
- Dr means Debit
- Cr means Credit
- NIBSS – Nigeria Interbank Settlement System – responsible for interbank settlement of transactions.
- Billing – The process of debiting the transaction fees accumulated for a period.
First Leg (Happens within Bank A being the payer's bank )
Dr: Payers Account in Bank A
Cr: Payable Account in Bank A
NOTE: Bank A is expected to ensure its customer's account is debited before sending the credit request to NQR(NIBSS)
Second Leg (Happens within Bank B being the beneficiary's bank)
Dr: Receivable Account in Bank B
Cr: Merchants Account in Bank B
Second Leg (Happens on NIP) after NQR validates successful debit at the payer's bank and sends an NIP request to the beneficiary's bank)
Upon Settlement
NIBSS:
Dr: CBN Account of Bank A (Through NQR Settlement)
Cr: CBN Account Bank B (Through NIP Settlement)
Where the Bank is both Issuer and Acquirer
First Leg
Dr: Payers Account in the Bank
Cr: Payable Account in the Bank
Second Leg- This will still be routed via NIP
Dr: Receivable in the Bank
Cr: Merchants Account in the Bank
NOTE: Second Leg (Happens on NIP) after NQR has received a credit instruction from the payer's bank following the bank's successful debit of their payer's account.
Upon Settlement
There is no Inter-Bank settlement to be done by NIBSS as this should be done within the bank.
NOTE: Receivable Account and Payable Account can also be a single transit account. This solely depends on the bank’s decision.
Where Bank B is the issuer and Bank A is the Acquirer
First Leg (Happens within Bank B being the payer's bank )
Dr: Payers Account in Bank B
Cr: Payable Account in Bank B
Second Leg (Happens within Bank A being the beneficiary's bank)
Dr: Receivable Account in Bank A
Cr: Merchants Account in Bank A
NOTE: Second Leg (Happens on NIP) after NQR has received a credit instruction from the payer's bank following the bank's successful debit of their payer's account.
Second Leg is based on NIP request to the beneficiary Bank which is also dependent on the payer's credit request to the Merchant through the NQR engine.
Upon Settlement
NIBSS:
Dr: CBN Account of Bank B (Through NQR Settlement)
Cr: CBN Account of Bank A (Through NIP Settlement)
NOTE: Please note that in all scenarios, the payer bank MUST debit its customer before calling NQR for payment to the beneficiary.
Billing
Fee Settlement (Billing): (To be passed by NIBSS on weekly basis subject to change)
NIBSS: (Where the fee was borne by the merchant and payer).
Dr: CBN Account of the Payer’s bank (fee Only)
Cr: The counterparties/stakeholders for their own share of the fee.
NIBSS: (Where the fee was borne by the Acquirer).
Dr: CBN Account of the Acquirer bank (fee Only)
Cr: The counterparties/stakeholders for their own share of the fee.