Filed in Bank & Finance by on January 23, 2012

No service charge on PoS transactions – CBN
January 23, 2012 by Ademola Alawiye

The Central Bank of Nigeria has called on Nigerians to embrace Point of Sale terminals, since they will not say that customers incur charges for using them.

In a statement on Friday, the CBN said the cost of such deals would be borne by merchants, who would pay 1.25 per cent of the transaction fee. It added that the fee was distributed to different parties for playing different roles in ensuring that the PoS system worked well.

The statement said, “Where the merchants do not use the PoS, they will still be charged a penal fee of 20 per cent of cash transaction in excess of the cash limit policy. Merchants are also advised to recognise that there are other ways in which the PoS terminal can benefit them, such as selling other services and earning commissions.

“For instance, mobile credit can be sold through the terminals, or used to collect bill payment for firms such as the Power Holding Company of Nigeria. Also training will be provided by the acquirer’s payment terminal service provider. Part of the deployment process is to ensure a practical training on how to use the PoS for by merchant and their staff.”

The statement pointed out that if the PoS or mobile phone is stolen, the money for the user would remain safe as the devices do not hold the money.

It said, “In terms of infrastructure, the CBN is working with the Nigeria Communication Commission and telecoms firms to ensure that there are dedicated communication links for the PoS system.

“Also, all PoS must have a minimum of two sims such as MTN and Glo. However, this does not guarantee 100 per cent connectivity but does increase the uptime of the PoS system. In terms of power, there is a minimum of 24 hours battery life, and they can sometimes come with car chargers.”

The statement said the PoS machines would accept all cards irrespective of the issuer. It added, “The apex bank has already issued a circular to break exclusivity of cards. Within Nigeria, all cards will be accepted at any terminal. The PoS, going forward, will accept both VISA and MasterCard at ATMs or POS terminals. Also, the Nigeria Inter-bank Settlement Systems has introduced NIBSS Instant Payment that enables people to transfer funds immediately between two accounts within same banks or in different banks.”

The banking watchdog said that it had released guidelines and standards for PoS operations, adding that it also appointed NIBSS to serve as a central aggregator for all PoS transactions.


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