How to Upgrade Your Customer Tier

Know Your Customer (KYC) is an identity verification requirement by the CBN for all account holders. It allows us to record and confirm who owns a particular bank account.

According to CBN regulations, there are three different tiers of KYC verification. Each tier has its own requirements and limits (in case you do not meet them).

Note:

KYC Verification is non-negotiable if you want to create/issue Fixed Accounts to your customers.

If you do not want to do KYC, consider using Collection Accounts. While it has limitations, your customers do not need to do KYC for you to issue/create a Collection Account.

Definitions

  1. Maximum available balance: This is the maximum amount of money a customer can have at any point in time.
  2. Maximum single deposit: This is the maximum amount of money a customer can receive as credit.
  3. Maximum transfer/withdrawal limit: This is the maximum amount of money a customer can transfer/withdraw at a time from their account.
  4. Maximum daily cumulative debit amount: This is the maximum amount of money they can withdraw daily.

Before you start

Here are a few things to keep in mind:

  1. KYC verification is done on a customer, not on the account created. An account only requires a customer to be verified to work properly.
  2. Once a customer has been verified on your organization, you no longer have to verify them for subsequent accounts created by that customer.
  3. All customers begin at Tier 0. There are three tiers of KYC verification, each with its own requirements.
  4. If a customer's account exceeds a KYC limit, it will be frozen until they provide the required documents. Frozen accounts cannot send or receive money.

Tier 0

By default, all customers start here.

The information required here is first name , surname , email address , and bvn .

Tier 1

This is the basic level for any account holder. The information required at this tier is address , country , date of birth , place of birth , gender , and passport photo .

This is the lowest KYC tier and the easiest to provide by any customer. Once provided, the customers can begin to use their account, but there are limits. If customers exceed these limits, their accounts will be blocked or reported until they upgrade KYC to the next tier.

In this tier, customers are limited to:

  • a maximum available balance of ₦300,000.
  • a maximum single deposit of ₦50,000.
  • a maximum transfer/withdrawal limit of ₦3,000.
  • a maximum daily cumulative debit amount of ₦30,000.

Tier 2

For customers who need to do more with their accounts, they’ll need to provide more information to verify their details. In this tier, the information required is means of ID and an image of the ID . Typically, this should be a nationally recognised identification document like a voter’s card, international passport, national ID card, or NIN slip.

Company identity cards are not recognised.

In this tier, customers are limited to:

  • a maximum available balance of ₦500,000.
  • a maximum single deposit of ₦200,000.
  • a maximum transfer/withdrawal limit of ₦10,000.
  • a maximum daily cumulative debit amount of ₦100,000.

Tier 3

This is the highest level of KYC verification. In this tier, the only information required is liveliness check

A liveliness check is an important factor in detecting fraud. It is powered by a technology that can differentiate photos/videos taken in real-time from those taken from a copy of a photo.

In this tier, customers have the following restrictions:

  • no limit on their maximum available balance.
  • a maximum single deposit of ₦5,000,000.
  • a maximum transfer/withdrawal limit of ₦1,000,000.
  • a maximum daily cumulative debit amount of ₦5,000,000.
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