Millions of Nigerians who rely on Verve cards for everyday transactions could face payment disruptions following a growing dispute between Verve, its parent company Interswitch, and a coalition of payment processors.
The disagreement escalated after several payment processors, acquirers, and switches threatened to suspend the acceptance of Verve card transactions across their networks. The group, made up of operators licensed by the Central Bank of Nigeria (CBN), issued the warning in a letter dated May 28, 2026.
According to the coalition, Verve and Interswitch have failed to address concerns relating to transaction routing, competition, and operational practices within Nigeria’s payment ecosystem. The processors warned that unless satisfactory commitments are provided within two days, they may halt the acceptance and processing of Verve card transactions.
If implemented, the move could affect merchants, fintech companies, POS operators, and millions of consumers who use Verve cards for payments nationwide.
Why payment processors are challenging Verve
The coalition argued that a Verve policy known as “Transaction Routing Integrity and Prohibition of Network Bypass” reinforces exclusive routing arrangements through Interswitch.
According to the processors, these arrangements have remained in place for more than a decade despite regulatory efforts aimed at encouraging competition and interoperability within Nigeria’s electronic payments industry.
“For over 10 years, you have continued to perpetuate switching exclusivity arrangements between your companies, notwithstanding regulatory expectations to the contrary,” the coalition stated.
The group also accused Verve and Interswitch of imposing fees that allegedly exceed limits permitted under existing CBN guidelines. In addition, they claimed that unauthorised deductions have been made from settlement accounts belonging to processors, acquirers, issuers, and switches.
The processors argued that the current arrangement exposes industry participants to financial and operational risks. As a result, they demanded the withdrawal of the routing policy, an end to alleged exclusivity arrangements, refunds for disputed deductions, and greater transparency in transaction processing charges.
They also maintained that issuers and acquirers should be free to process Verve transactions through networks of their choice.
The coalition noted that major international card schemes such as Visa and Mastercard do not require transactions to pass through a single operator.
“Should the requested undertakings not be provided within the stipulated timeframe, our companies will, with regret and despite our preference to avoid any interruption to payment services, be compelled to proceed with the planned suspension,” the letter stated.
Interswitch pushes back
While Verve has not released an official statement, senior sources within Interswitch rejected the allegations and defended the company’s position.
According to a senior source, the disputed policy was introduced to address network bypass practices that could increase fraud risks and make suspicious transactions harder to trace.
“This thing has been on for many years. They go to CBN to complain, we have meetings, we explain, and it dies down,” the source said.
The source further alleged that some processors had bypassed established transaction routes, making fraud investigations more difficult.
“Now, this has come up again because these guys are now allowing fraud that we can’t trace where it’s coming from, only to discover that these guys have bypassed,” the source added.
According to Interswitch, efforts to enforce penalties for violations of scheme rules triggered the latest confrontation among industry participants.
The source also confirmed that the matter has now been referred to the Central Bank of Nigeria, which has summoned all parties for discussions aimed at resolving the dispute.
The outcome of those discussions could determine whether Verve card transactions continue uninterrupted across Nigeria’s payment ecosystem or face temporary disruptions in the coming days.
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