ISLAMABAD — The State Bank of Pakistan (SBP) cannot force shops and superstores like Metro to accept contactless payments made through smartphones, smartwatches and other wearable devices, as merchants are not directly regulated by it. SBP informed officials that it does not regulate merchants and cannot direct them to accept any particular payment method.
Several shops have stopped accepting or restricted NFC payments made through digital devices, creating a grey area over whether retailers can refuse phone-based payments but continue accepting contactless debit and credit cards. This means the central bank cannot compel sellers to restore phone-based contactless payments or require other them to support a specific digital payment method. Who Is Responsible if a Contactless Payment Is Fraudulent?
The central bank has clarified how liability is determined when a PIN-free contactless payment is disputed as fraudulent. Payment schemes such as Visa, Mastercard and PayPak have dedicated liability and dispute-resolution frameworks covering customers, merchants and acquiring banks. Responsibility is determined on a case-by-case basis, depending on the actions, omissions or negligence of the parties involved.
This means liability is not automatically assigned to the customer or merchant whenever a contactless transaction is disputed. SBP said these payment-scheme rules contain detailed provisions governing the rights and responsibilities of all parties and are designed to protect customers. SBP Confirms Rs 3,000 Limit for PIN-Free Payments The central bank has also settled a question over the maximum amount allowed for contactless transactions without entering a PIN.