POS FIXED CHARGE STOPS MAY 2017 IN NIGERIA

The regime of merchant service charge per transaction through the point of sale terminal (POS) fixed by the Central Bank of Nigeria presently is to stop by May next year.

According to a circular signed by Dipo Fatokun, Director, banking and payments of the CBN, from then merchants and acquirers are expected to negotiate the rate per transaction subject to maximum limits.

Currently, the fee charged for any POS transaction is 1.2% subject to maximum of N2000 except in the case of payment for travel and entertainment.

This fixed fee was then shared  30% to the card issuer, 32.5% to the merchant acquirer; 25% to the terminal owner; 5% to the local switch and 7.5% to the Payment Terminal services provider (PTSP).

From May this will change and interchange fee of 0.40% for general usage to the Issuer to a maximum of N1300 per transaction and 0.85% with maximum of N3200 in the case of travels and entertainment usage will be paid.

In the case of other fees, PTSP will get 0.15% with maximum of N500 per transaction and payment terminal service aggregator (PTSA) will get 0.05% with N130 cap per transaction.

In the case of travels and entertainment, the PTSA fee remains the same but rises to 0.40% with maximum of N1500 for PTSP. The PTSA fee cap, though, rises to N300.

The PTSP and PTSA fees are to be paid directly by the settlement agent.

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