The Central Financial institution of Nigeria has directed all Cost Service Suppliers to route all transactions from PoS terminals at service provider and agent areas — bodily or digital — by way of an accepted CBN Cost Terminal Service Aggregator.
It additionally issued a 30-day deadline requiring service suppliers to adjust to enhanced routing pointers for Level of Sale transactions. This transfer goals to strengthen the monitoring of digital transactions throughout Nigeria and decentralise PoS transaction routing, addressing issues in regards to the centralisation of such transactions underneath a single entity.
The apex financial institution, in a round signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Funds System Administration Division on Thursday, acknowledged that each one PoS transactions from service provider and agent areas should now be routed by way of any CBN-licensed PTSA.
The round learn, “To attain the target of monitoring digital transactions in Nigeria, the Central Financial institution of Nigeria, in August 2011, granted a Cost Terminal Service Aggregator licence to Nigeria Interbank Settlement System Plc. In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at service provider and agent areas, whether or not on bodily or digital PoS terminals, by way of any CBN-licensed Cost Terminal Service Aggregator.”
“PTSAs are required to ship PoS transactions to solely processors licensed by the related Cost Scheme, nominated by the Acquirer, and licensed by the CBN.”
This improvement follows the expiration of the fifth September deadline for PoS brokers to formally register their companies with the Company Affairs Fee.
Though the directive was challenged in court docket, the CAC not too long ago introduced that it has commenced taking drastic actions, together with shutting down PoS companies that didn’t register.
The directive on PoS enterprise registration comes in opposition to the backdrop of frequent fraud incidents involving PoS terminals and the Central Financial institution of Nigeria’s plans to stop buying and selling in cryptocurrency or digital forex.
In accordance with a report by Nigeria Inter-Financial institution Settlement System Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023.
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