The Airtel Smartcash PSB Customer Compensation Policy from Airtel Payment Service Bank is very important to their users. In line with the company’s vision of making financial services accessible to the unbanked, underserved, and those in hard-to-reach areas, the Bank is dedicated to delivering reliable and efficient payment solutions. But first, you have to understand everything about the Airtel SmartCash Payment Service Bank (PSB) and Airtel Finance Personal Loan.
This policy affirms their commitment to compensating customers for financial losses that result from service failures directly attributable to the Bank. The Smartcash PSB are guided by the principles of fairness, transparency, and strict compliance with all applicable laws and regulations.
For products or services involving multiple stakeholders, the Bank’s liability is limited solely to failures that can be directly traced to its own operations.
Purpose of Smartcash PSB Customer Compensation Policy
This policy is designed to:
a) Provide a clear and consistent framework for compensating customers.
b) Ensure strict compliance with the Central Bank of Nigeria (CBN) regulations, the Federal Competition and Consumer Protection Act (FCCPA) 2018, and the Nigerian Data Protection Act (NDPA) 2023.
c) Reduce customer dissatisfaction while strengthening trust and loyalty.
d) Limit financial and reputational risks that may arise from service failures.
Scope of Smartcash PSB Customer Compensation Policy
This policy applies to all customers of the Bank including individuals, businesses, and organizations who make use of our payment services.
Legal and Regulatory Framework of the Customer Compensation Policy
The Bank’s Customer Compensation Policy is aligned with the Central Bank of Nigeria (CBN) Consumer Protection Regulations, the Federal Competition and Consumer Protection Act (FCCPA) 2018, and the Nigerian Data Protection Act (NDPA) 2023, while also reflecting the principles of the Nigerian Data Protection Regulation (NDPR) 2019.
The Bank’s Customer Compensation Policy is guided by relevant legal and regulatory provisions to ensure fairness, transparency, and accountability in handling customer complaints and compensation. Specifically, the framework aligns with the following:
- Central Bank of Nigeria (CBN) Consumer Protection Regulations
- Ensures that customer rights are protected and that financial service providers act responsibly in resolving disputes.
- Provides timelines and standards for addressing complaints and compensating customers.
- Federal Competition and Consumer Protection Act (FCCPA) 2018
- Promotes fair market practices and safeguards consumer interests.
- Mandates businesses, including financial institutions, to provide adequate remedies for losses or harm caused by service failures.
- Nigerian Data Protection Act (NDPA) 2023
- Guarantees the privacy, security, and lawful use of customer data in all transactions.
- Protects customers from financial or reputational loss resulting from data misuse, breach, or unauthorized disclosure.
- Nigerian Data Protection Regulation (NDPR) 2019
- Establishes key principles for data collection, processing, and retention.
- Reinforces accountability, confidentiality, and transparency in handling customer information.
Together, these laws and regulations provide the foundation upon which the Bank’s compensation framework is built, ensuring that customer redress is carried out in compliance with industry best practices and statutory requirements.
Categories of Compensable Service Failures in Smartcash PSB
The Bank will provide compensation to customers in cases where financial losses are directly attributable to failures in its systems, processes, or operations. The compensable categories include, but are not limited to, the following:
I. Unauthorized Account Debits
Where an account is debited without the customer’s proper authorization (e.g., PIN entry or security verification), the Bank will investigate under its Dispute Resolution Process. Compensation will only be granted if the transaction is confirmed to be unauthorized and not due to customer negligence.
Example: A customer’s account is debited ₦10,000 for a transfer they never initiated. If the Bank confirms that the debit was not caused by the customer sharing their PIN or login details, the full amount will be refunded.
II. Delayed Payments
If the Bank fails to process a payment within the prescribed timeframe and this results in financial loss, compensation may be considered. The Bank will not be liable for delays caused by customer-provided errors or events outside its reasonable control.
Example: A merchant payment of ₦50,000 is delayed for three days due to a Bank system fault, causing the customer to miss a delivery. The Bank may refund related charges or penalties.
III. Incorrect Charges
Where verified Bank errors result in wrongful charges, the Bank will correct the error and refund the overcharged amount. Compensation is limited to the overcharge and excludes indirect losses.
Example: A customer is charged ₦500 instead of ₦100 for a service fee. The Bank will refund ₦400, being the excess charge.
IV. Transaction Processing Errors
Where the Bank fails to correctly process customer transactions, resulting in financial loss, compensation may be provided.
Example: A customer transfers ₦20,000 but the beneficiary only receives ₦10,000 due to a system error. The Bank will immediately process the remaining ₦10,000 or refund the shortfall.
V. Service Disruptions
If Bank service disruptions cause direct financial loss, compensation may be provided. However, the Bank shall not be liable for disruptions due to customer error, scheduled maintenance with notice, or force majeure events.
Example: During an unexpected system downtime, a customer is unable to pay exam registration fees before the deadline and incurs a penalty. The Bank may cover the penalty if the downtime was not previously announced.
VI. Multi-Stakeholder Service Failures
For services involving third parties, compensation applies only where the Bank has a clear responsibility.
Example: If a customer tops up airtime through the Bank’s platform but the telecom operator fails to deliver the airtime, the Bank will refund the customer since the transaction passed through its system.
VII. Incorrect Reversals
Where valid customer transactions are erroneously reversed, leading to financial loss, compensation may be provided.
Example: A successful transfer of ₦100,000 is mistakenly reversed by the system, and the receiving party cancels the deal. The Bank will restore the transaction and may compensate the sender for documented losses
Compensation Guidelines and Eligibility Criteria of Airtel Smartcash PSB
Compensation will only be provided where all of the following conditions are met:
I. Direct Bank Responsibility
- Compensation applies only when a service failure is proven to be directly attributable to SmartCash PSB.
II. Evidence of Loss
- Customers must provide sufficient and verifiable evidence of financial loss resulting from the service failure.
III. Exclusions of Liability
- SmartCash PSB will not be responsible for claims except where losses are caused by willful default directly attributable to the Bank.
- The Bank disclaims liability for any damages or losses—including direct, indirect, incidental, consequential, special, or punitive damages—arising from, but not limited to, the following:
a. Customer Input Errors: Transactions sent to unintended recipients, or payments made in incorrect amounts, due to the customer providing incorrect details.
b. Unauthorized Third-Party Transactions: Transactions initiated by third parties who successfully pass identity and verification checks.
c. Customer Fraud or Misrepresentation: Any fraud, deception, or misrepresentation by SmartCash PSB customers, whether verified or unverified.
d. Acts Beyond Control: Losses resulting from acts of government, regulatory directives, force majeure events, or acts of God.
IV. Liability Limit
- The Bank’s liability for compensation in any single event, or a series of related events, shall not exceed the prevailing maximum account balance limit as approved by the Central Bank of Nigeria for SmartCash PSB accounts.
Compensation Matrix
| Type of Service Failure | Compensation Approach | Maximum Compensation Limit |
|---|---|---|
| Unauthorized Account Debits | Full refund of the debited amount (if proven not caused by customer negligence) | Up to account balance limit |
| Delayed Payments | Refund of charges/penalties directly linked to delay | ₦100,000 per incident |
| Incorrect Charges | Refund of excess amount wrongly charged | No limit (refund equals overcharge) |
| Transaction Processing Errors | Correction/refund of shortfall or failed transaction | Up to ₦500,000 per incident |
| Service Disruptions | Refund of direct financial loss (e.g., penalties, fees) | ₦250,000 per incident |
| Multi-Stakeholder Service Failures | Refund where Bank has direct responsibility | ₦200,000 per incident |
| Incorrect Reversals | Restoration of valid transaction + documented direct loss | Up to ₦500,000 per incident |
Note:
- Indirect, consequential, or punitive damages are excluded.
- Compensation will only apply where failures are directly attributable to the Bank and supported by evidence of financial loss.
- The overall compensation shall not exceed the maximum account balance limit approved by the Central Bank of Nigeria for SmartCash PSB customers.
