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 

 

 

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



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


 

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 B (Through NQR Settlement)

Cr: CBN Account of Bank A (Through NIP Settlement)

 

 


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.