The Central Bank of Nigeria (CBN) has continued to give
directives that deepen its cashless policy with its new rule for e-payment
channels, especially the Point of Sale (PoS) machine. This new directive is
coming barely a month after the CBN ordered that customers should no longer be
charged N50 for transactions on the PoS.
The apex bank said it had upgraded the use of the PoS by
merchants or other users. The new rule is particular to messages displayed by
the PoS during transactions. Now, CBN said merchants are required to obtain
Acquirer Device Validation certification or the applicable testing completion
notification from its licensed card schemes.
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The apex banker had identified the predominant use of a
single messaging format for POS transactions as an obstacle to the use of
pre-authorisation as a mode of payment in Nigeria.
In a statement signed by Director, Payment System Management
Department, CBN, Musa Jimoh, “By this directive, all PoS terminal must have the
capability for transaction pre-authorisation and sales completion. All card
issuers are required to build the capability and enable the processes for
pre-authorisation and sales-completion of transactions. Card schemes are also
required to provide online simulators for acquirers and issuers to test their
systems, when necessary.”
The deadline to meet the directive is set for July 31, 2020,
but the directive takes immediate effect. Those who fail to meet the deadline
will be sanctioned for non-compliance.
The use of PoS in the country has risen within the last
three years, according to Nigeria Interbank Settlement System (NIBSS). It was
disclosed that over 146.3 million transactions were made in 2017; this stands
for N1.4 trillion. In 2018, the worth of POS transaction rose to N2.3 trillion
after a total of 285.9 million transactions was recorded
Meanwhile, in half-year 2019, 187.7 million transactions
were recorded, representing N1.4 trillion. So POS has become a crucial driver
of the cashless policy and deepening of financial inclusion in both urban and
rural areas.
Recall that CBN had directed that the N50 POS Stamp Duty
charge should be collected from businesses and not customers.
The bank also slashed withdrawal fees usually charged after
the third withdrawal from Automated Teller Machines within the same month. CBN
stated that the withdrawal fee charged for the use of other banks’ Automated
Teller Machines (ATM) has been reduced to N35, from N65 earlier charged, and
the card maintenance fee has been reviewed to N50 every three months
(quarterly), from the initial monthly period.
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