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.