POS Operators to Suspend Services Nationwide, Alert CBN, FCCPC
- POS service providers have issued a warning that they plan to shut down operations nationwide
- The move could potentially disrupt banking and e-payment services relied on by millions of Nigerians
- The group warned it could suspend Verve card transaction processing, citing alleged monopolistic practices
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Association of Point of Sale Service Providers (POS) has threatened to shut down its activities nationwide should the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC) fail to immediately intervene in the alleged exclusivity practice by two companies.
The association stated that it has submitted an official complaint to the regulators concerning the "unlawful, constant decisions" from the two companies, which the group claims violate regulatory laws.
Source: Getty Images
The association disclosed in a statement signed by Yomi Idowu, Communications Consultant to the association.
According to Idowu, the POS operators wrote a petition protesting the alleged persistent unlawful decisions of the two companies, noting that their actions negate the "extant rules and regulations of the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Act (FCCPC), 2018," Guardian reports.
The Association of POS Service Providers emphasised that as representatives of a coalition comprising several CBN-Licensed payment acceptors/acquirers, processors and switches, they would have no option but to suspend the acceptance/acquiring, processing and switching of Verve Card transactions.
The statement from the association reads:
"This decision has become unavoidable, because of the continued and increasing illegal actions of the firms which the Association claims 'has the effect of compromising the integrity of Nigeria's payments ecosystem, eroding the capital base of participating Institutions and breach[ing] multiple regulatory requirements."
Source: Getty Images
4 key issues highlighted by PoS operators
- Maintaining an exclusive monopoly over the processing of Verve card transactions, which the association says restricts competition within Nigeria’s payment ecosystem.
- Abuse of a dominant position in the domestic card scheme market, allegedly in violation of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and CBN Guidelines on the Operation of Electronic Payment Channels.
- Charging scheme fees above the acquirer’s share of the regulated Merchant Service Commission (MSC), contrary to applicable CBN regulations, according to the association.
- Carrying out alleged illegal and unauthorised debits on settlement accounts belonging to acquirers, processors, and switches without proper approval.
The association noted that other card scheme operators have already removed exclusivity arrangements in line with CBN regulations, making the alleged practices an exception within the industry.
Relief as CBN announces plan for bank charges, alerts
Earlier, Legit.ng reported that Nigerians might enjoy relief from multiple debit alerts as the Central Bank of Nigeria (CBN) announced plans to review transaction-related fees imposed by commercial banks.
The decision followed a rise in complaints from bank customers about confusing debit alerts and multiple deductions.
One key issue being examined is the “multiplicity” of bank alerts sent to customers.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
