Understanding Daily Transaction Limits: What You Need to Know

We have all been there—trying to complete a transaction only to be stopped by that frustrating transaction limit error. It is a hurdle many of us encounter when dealing with online transactions. 

In this guide, we will explain what transaction limits are, why they affect your daily transactions, their significance, and the reasons behind the Central Bank of Nigeria’s (CBN) regulations. We will also offer tips on how to navigate these limits effectively.

What are Transaction Limits?

Transaction limits are restrictions imposed by the Central Bank of Nigeria (CBN) on financial institutions, including fintech platforms like Paga. These limits dictate how much money can be deposited, withdrawn, or transferred within a specific time frame. They are designed to safeguard the financial system and prevent fraud, money laundering, and other financial irregularities.

While these limits might sometimes seem inconvenient, they serve a vital purpose in maintaining the integrity of the financial industry.

Knowing Your KYC Level

The revised transaction limits for mobile money wallets are categorized based on your Know Your Customer (KYC) level. Each KYC level has specific transaction limits, and your account is assigned a level based on the personal information you have provided.

For more details on KYC and what you need to increase your transaction limit, click here. 

Determinants of Transaction Limits

Several factors can influence your transaction limits. These includes:

1. Regulatory directives:  Local, national, and international regulations can dictate transaction limits to combat money laundering, terrorism financing, and other financial crimes. 
2. Account type: The type of Paga account you have (e.g., individual, business) can affect your limits. For traditional banks, having a savings or current account can also influence the limits imposed.
3. Transaction type:  Limits can vary for deposits, withdrawals, transfers etc.
4. Verification Level: Your transaction limits with Paga are influenced by your verification status.

Types of Limits

Several types of transaction limits may apply to your Paga account, depending on the factors discussed above. Common transaction limits include:

• Daily Limit: This is the maximum amount you can transact in a single day. These limits restrict the amount of money you can deposit, withdraw, or transfer within a single day. 
• Cumulative balance limit: This is the total amount of money that can enter and stay in your account.
• Weekly Limit: Similar to daily limits, this is the maximum amount you can transact in a week.
• Monthly Limit: This is the maximum amount you can transact in a month.
• Transfer limits: These limits specifically apply to transfers, such as wire transfers or electronic funds transfers (EFTs).
• ATM limits: Depending on your bank, ATMs often have daily or weekly limits on cash withdrawals.
• Per-Transaction Limit: This is the maximum amount you can transact in a single transaction.

Why Transaction Limit Matters

Transaction limits are essential for safeguarding the integrity of our financial system. They help ensure that transactions are secure and compliant with regulations. By implementing Know Your Customer (KYC) protocols, financial institutions assess the level of personal information provided to prevent fraudulent activities and maintain system trustworthiness.

At Paga, we are committed to aligning our practices with legal and regulatory requirements. We understand that navigating transaction limits can sometimes be complex and frustrating, especially when you need to carry out large transactions quickly. However, these measures are in place to protect your account and finances. 

Now, understanding transaction limits is one thing, but how can you effectively navigate them to ensure a smooth and convenient transaction experience with us? Here are some practical tips to help you manage your transaction limits and make the most of your Paga account:

Navigating Transaction Limits

To avoid any inconvenience due to transaction limits, follow these helpful tips:

1. Know Your Limits:. Familiarize yourself with the specific limits for your accounts. This information can usually be found in the account settings of your Paga app or by reaching out to our support team. Being informed helps you plan your transactions better and avoid any surprises.
2. Plan for Large Transactions: If you expect to make large transactions, plan ahead to avoid hitting your limits. Consider splitting transactions into smaller amounts or request a limit increase. Upgrading your Paga account to a higher KYC level can also help, as it offers higher transaction limits. You can request a limit increase through the Paga app or by contacting our support team for guidance. 

By staying informed and managing your limits effectively, you can maximize the benefits of your Paga account and enjoy a hassle-free financial experience.

Ready to get started? Download the Paga app on the Play Store or App Store and take control of your transactions today!