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CBN Guidelines on Point of Sale (POS) Card Acceptance Services

By on August 15, 2011

In preparation for the take-off of its policy on cash withdrawal limit, the Central Bank of Nigeria, CBN, has issued guidelines for payment of goods and services through Point of Sale Terminal (PoS).

Among other things the guidelines barred merchants from surcharging customers for using PoS to pay for transactions.

It said: “A merchant shall under no circumstance charge a different price, surcharge a cardholder or otherwise discriminate against any member of the public who chooses to pay with a card or by other electronic means.”

It, however, limits the fee that a merchant can be charged for any PoS transaction by the PoS service provider to 1.25 per cent of transaction value. It said: “The maximum total fee that a merchant shall be charged for any PoS transaction shall be 1.25 per cent of the transaction value subject to a maximum of N2,000.

“Exceptions may apply in respect of travel and entertainment merchants including but not limited to hotels, restaurants, airlines, etc. In which case shall be at such rate as agreed from time to time between the Acquirer and the Merchant.

“Under no circumstance shall a merchant charge a surcharge to customers for using their cards. The fees and charges stated above are applicable to only PoS transactions performed with naira denominated cards.”

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