CBN Gives New Directive on PoS Transaction through Payment Terminal Service Aggregators
- CBN directed payment service providers to route all transactions from point of sale (POS) terminals through licenced payment terminal service aggregators
- Through terminal certification, PTSAs guarantee the operational and technical standardisation of all deployed point-of-sale devices
- The CBN advised PSPs and aggregators to be led responsibly, warning that non-compliance will have appropriate repercussions
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Payment service providers (PSPs) have been instructed by the Central Bank of Nigeria (CBN) to use their authorized payment terminal service aggregators (PTSAs) for all transactions from point of sale (POS) terminals at merchant and agent locations.
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The order was issued by CBN in a circular that was published on Thursday but dated September 11, 2024.
Through terminal certification, PTSAs guarantee the operational and technical standardisation of all deployed point-of-sale devices.
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This guarantees the industry's payment terminals and gadgets will always be available and operate consistently.
PSP to channel PoS transactions through NIBSS, others
The apex bank mandated that PSPs normalise their systems and route all point-of-sale (POS) transactions through its licenced payment processing services providers, Nigeria Interbank Settlement System Plc (NIBSS) and Unified Unified Payment Services Limited (UPSL).
Additionally, PSPs were required to notify CBN of their compliance within 30 days of the circular's date.
It stated,
The CBN hereby directed acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator (PTSA), in furtherance of the PTSA licence to Unified Payment Services Limited (UPSL).
It further stated that only Processors licensed by CBN, approved by the Acquirer, and certified by the applicable Payment Scheme may receive PoS transactions from PTSAs.
It added,
“All licensed Processors must be integrated with both PTSAS, thereby allowing Acquirers the flexibility to choose which Processor(s) and PTSA to utilise.
“All Payment Terminal Service Providers (PTSPs) must ensure that their PoS devices. Applications are configured to route transactions through any PTSA, as directed by the Acquirer.
“All PTSPs shall submit monthly returns to the CBN, detailing the number of merchants and agents they manage, along with the PTSA services used to route the corresponding transactions.
“Each PTSA is required to submit monthly returns to the CBN, detailing all transactions processed through their platforms.”
The financial regulator further stated that, no later than seven days following the end of each month, all PSPs and PTSAs are required to submit monthly returns to CBN's director, payments system management department.
PSPs and aggregators should be led appropriately, the CBN urged, noting that non-compliance will result in appropriate consequences.
“Consequently, you are hereby directed to commence regularisation with the PTSAs and notify the CBN in writing to confirm compliance within 30 days from the date of this circular.”
PoS operators increase withdrawal
Earlier, the point of Sale (PoS) operators across Nigeria have increased their withdrawal and deposit fees following the introduction of a new N50 Electronic Money Transfer Levy (EMTL) on their transactions by fintech companies.
Legit.ng reported that the federal government ordered Opay, Moniepoint, and other fintech companies to begin charging a N50 EMTL fee on every N10,000 deposit in their customers' accounts.
This is part of the Nigerian government's drive to generate additional revenue from digital financial services.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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