The Central Bank of Nigeria (CBN) has said bank customers will not incur charges for using Point of Sale (PoS) machines.

In a statement made available to Nigerian Tribune, the apex bank submitted that the cost of such deals will be borne by merchants, which will pay 1.25 per cent of the transaction fee, adding that the fee is distributed to different parties for playing different roles in ensuring that the PoS system works well.

The fees according to the statement enable the parties to recover the cost of the PoS, support maintenance and connectivity among others.

It explained that 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 (PHCN). Also training will be provided by the acquirer’s payment terminal service provider (PTSP).

Part of the deployment process is to ensure a practical training of how to use the POS for the merchant and their staff.

“However, if the POS or mobile phone is stolen, the money for the user is safe as the devices do not hold the money. In terms of infrastructure, the CBN is working with Nigeria Communication Commission and telecoms companies 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 PoS system. In terms of power, there is minimum of 24 hours battery life, and they sometimes come with car chargers,” the statement said.

However, in terms of security of platforms, it said that ATM fraud was prevalent when Nigeria was using magnetic stripe cards. But last year, the country changed all such cards to chip and pin which is more secured, and drastically reduced the fraud level. With chip and Pin, the chances of fraud are reduced provided a customer keeps his PIN secret.

Besides, the CBN Automated Teller Machine (ATM) Fraud Prevention Committee comprising banks, Economic and Financial Crimes Commission (EFCC), InterSwitch, ValuCard among others, deliberates monthly to make e-payments more secured. 

Also, the Nigerian Electronic Payment Fraud Forum has been inaugurated to share strategy for fraud prevention.

“The literacy required in operating the PoS is minimal as many Nigerians can use a mobile phone, needed to make mobile payments. Biometrics are also being installed in some ATMs and PoS to further check fraud in the industry.

“Nigeria Inter-bank Settlement Systems (NIBSS) has also introduced NIBSS Instant Payment that enables people to transfer funds immediately between two accounts within same banks or in different banks. This is currently being offered by a few banks. The apex bank has already issued a circular to break exclusivity of card. 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,” the CBN said.