POS Operators To Suspend Services Nationwide, List 4 Reasons
- POS service providers have issued a warning that it plans 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 stated that its activities may be shut down throughout the nation should the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC) ffail to immediately intervene in the alleged exclusivity practice by two companies.
The Association stated that it had submitted an official complaint on its website and to regulators concerning the "unlawful, constant decisions" from the two companies, which, the group says, were violating regulatory laws in their operation.
Source: Getty Images
The Association disclosed in a statement signed by Yomi Idowu, Communications Consultant to the Association.
According to Idowu, the POS operators have written a letter to protest the alleged persistent unlawful decisions of the two companies, noting that their actions negate ‘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 Central Bank of Nigeria Licenced payment acceptors/acquirers, processors and switches, they would have no option but to suspend acceptance/acquiring, processing and switching of Verve Card transactions.
The Point of Sales Association in the letter was quoted said:
"This decision has 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"
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4 key issues highight 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 may soon enjoy relief from and 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.
Source: Legit.ng
