Paystack, Flutterwave, Other Payment Processors Threaten to Suspend Verve Card, Give Reasons
- Payment processors threaten to suspend Verve card transactions over alleged regulatory violations
- Coalition demands an end to exclusive routing policies and unauthorised deductions from settlements
- Interswitch dismisses allegations, cites fraud risk concerns behind routing rules
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Millions of Nigerians who rely on Verve cards for everyday payments could face disruptions after a coalition of payment processors, acquirers, and switches threatened to suspend the acceptance of Verve card transactions nationwide.
In a letter dated May 28, 2026, addressed to Verve International and its parent company, Interswitch Limited, the coalition accused both firms of regulatory and competition-related violations.
Source: Getty Images
The group warned that unless urgent commitments are provided within 48 hours, it would halt the acquisition and acceptance of Verve card transactions.
The coalition consists of several operators licensed by the Central Bank of Nigeria (CBN). If the threat is carried out, it could affect merchants, fintech platforms, POS operators, businesses, and millions of Verve cardholders nationwide.
Why are the processors threatening suspension?
The coalition acknowledged that the planned action could disrupt payment services.
Still, it argued that it had become necessary due to what it described as persistent non-compliance by Verve and Interswitch.
“This action is neither voluntary nor desirable,” the group stated, adding that any inconvenience suffered by merchants, cardholders, or other stakeholders would be the responsibility of Verve and Interswitch, according to a report by Nairametrics.
At the centre of the dispute is Verve’s “Transaction Routing Integrity and Prohibition of Network Bypass” policy. According to the coalition, the policy effectively reinforces exclusive transaction routing through Interswitch, limiting competition within Nigeria’s payment ecosystem.
The operators alleged that Verve and Interswitch have maintained switching-exclusivity arrangements for more than a decade despite regulatory expectations to promote interoperability and fair competition.
They further accused the companies of abusing a dominant market position and charging scheme fees that allegedly exceed limits permitted under existing CBN regulations.
The coalition also claimed that unauthorised deductions were being made from settlement accounts belonging to acquirers, issuers, processors, and switches, exposing participating institutions to financial and operational risks.
Demands from the coalition
The group is demanding the immediate withdrawal of the transaction routing policy and an end to all forms of routing, switching, and processing exclusivity.
It also wants an immediate stop to the alleged unauthorised deductions, refunds for affected parties, and a commitment that transaction processing services will be invoiced transparently rather than deducted directly from settlement accounts.
Additionally, the coalition insists that issuers and acquirers should not be compelled to process or switch Verve transactions through Interswitch.
According to the operators, global card schemes such as Visa and Mastercard do not require transactions to pass through a single designated operator.
The coalition warned that if the requested undertakings are not provided within the stipulated period, it would proceed with the suspension despite the potential impact on payment services.
Interswitch fires back
While Verve has not issued an official statement, senior sources within Interswitch dismissed the allegations and accused some payment processors of attempting to bypass Verve’s network.
According to a senior company source, the routing rules were introduced to address practices that could increase fraud risks and undermine the integrity of the payment scheme.
The source claimed that some processors had been bypassing established transaction routes, making certain transactions difficult to trace and investigate.
Interswitch argued that the planned enforcement measures have triggered resistance from affected operators, prompting them to unite against the company.
The source also revealed that the matter has already been escalated to the CBN, which has reportedly summoned all parties for discussions.
What it means for Nigeria’s payment industry
The dispute has reignited concerns about competition, interoperability, and concentration risks within Nigeria’s rapidly expanding digital payments sector.
A prolonged standoff could test the resilience of the country’s electronic payment infrastructure at a time when Nigeria is pushing for greater adoption of cashless transactions and digital financial inclusion.
Source: Getty Images
With the CBN already stepping in, industry observers say the situation may also attract the attention of competition regulators if the disagreement escalates into widespread service disruptions.
CBN raises ATM card issuance fee
Legit.ng earlier reported that the Central Bank of Nigeria (CBN) has raised the cost of issuing and replacing Automated Teller Machine (ATM) debit and credit cards to ₦1,500, marking a 50 per cent increase from the previous ₦1,000 fee.
The directive applies to banks across the country, including major lenders such as Access Bank and United Bank for Africa, which are expected to implement the revised charges in line with the regulator’s new guidelines.
The change forms part of the apex bank’s updated framework governing bank charges and service fees in Nigeria.
Source: Legit.ng
