N50 POS charge to be paid by businesses not customers - CBN warns

N50 POS charge to be paid by businesses not customers - CBN warns

- The Central Bank of Nigeria has warned merchants against charging customers N50 for POS transactions

- The bank said its directive on stamp duty was misunderstood by many merchants across Nigeria

- According to the bank, the merchants are the one to pay the stamp duty and not customers

The Central Bank of Nigeria (CBN) on Monday, December 23, cautioned merchants against charging customers N50 for the use of Point Of Sales (POS) machines.

The apex bank said its directive on stamp duty payments were misunderstood by merchants who are already billing customers N50 for every POS transaction.

Addressing the issue on a Channels Television's programme on Monday, December 23, Musa Jimoh, the CBN's director of the payment system management department said stamp duty is a fee regulated by an Act.

Jimoh said the CBN does not regulate the stamp and cannot be involved in making changes as highly misinterpreted by most merchants across the country.

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He said: “Our circular that talks about merchants paying stamp duty according to the law does not say that the stamp duty should be paid by the consumer. That’s actually a misrepresentation of the CBN’S directive."

N50 POS charge to be paid by businesses not customers - CBN warns

The bank said its directive on stamp duty was misunderstood by many merchants across Nigeria
Source: Depositphotos

“What our directive says is that merchants should pay all necessary charges as regulated by the government agency including stamp duty. When there is an electronic transaction to an account other than a savings account and the transaction amount is more than N1,000, you have to pay stamp duty," Jimoh said.

He added that the CBN's explanation to banks is that it is important that merchants comply with this directive by ensuring that every single payment customers make to them, the merchants pay the regulated stamp duty of N50.

What has happened is that they have transferred this fee, blatantly and openly to the consumers. This is very wrong.

“No single individual should pay N50 in addition to the cost of the good. Stamp duty is not to be paid by individuals that are consuming the goods and services of the merchant. The merchants who are receiving the money are the ones who are supposed to pay," the apex bank noted.

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Meanwhile, Legit.ng previously reported that the CBN had announced a downward review of most of bank charges on customers.

For example, the apex bank reduced the fees for ATM card maintenance and electronic transfers and directed that customers will now be paying N10 for each electronic transfer below N5,000 and N25 for those between N5,000 and N50,000.

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Source: Legit Newspaper

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