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Tag: PoS

  • CBN issues fresh directive to fintechs, banks on PoS terminals

    CBN issues fresh directive to fintechs, banks on PoS terminals

    The Central Bank of Nigeria (CBN) has mandated that banks, fintech companies, and other licensed payment operators install GPS tracking on all Point of Sale (PoS) terminals to enhance monitoring of electronic transactions.

    TheNewsGuru.com(TNG) reports that the director of the payments system supervision department Rakiya Yusuf disclosed that the apex bank mandated that all  PoS devices must be equipped with native geo-location services and double frequency GPS receivers for accurate location tracking.

    In the directive dated August 25th, operators are required to register each terminal with a payment terminal service aggregator and provide the precise coordinates of the merchant’s or agent’s business location.

    Every Point of Sale (PoS) machine must capture and transmit its location data at the start of each transaction. Any activity conducted outside a 10-meter radius of the registered business location will be flagged. Additionally, terminals that are not properly geo-tagged will be unable to process payments.

    The CBN has stipulated a 60 day period for all existing devices to be geo tagged, while new terminals must be tagged prior to their certification and activation.

    It stated, “Geo location data must be captured at transaction initiation and included in the message payload as a mandatory reporting field, terminals not directly routed to a PTSA are not permitted to transact.

    “All existing terminals and newly registered terminals must ensure strict adherence always to approved MSC code per sector

    “All existing terminals must be geo tagged within 60 days of this circular; new terminals going forward must be geo tagged before certification and activation.”

    The measures come amid a surge in the use of PoS machines across Nigeria.

    Once considered an alternative, PoS agents have become a central part of the country’s cash economy, handling millions of payments daily as banks cut branch networks and ATMs often run dry.

    But the boom has also created risks, as fraud complaints involving PoS agents have increased, and security officials say kidnappers have, in some cases, forced victims to transfer ransom money through nearby PoS operators to avoid detection.

    The CBN also directed payment companies to adopt a new global standard for transaction messages, known as ISO 20022, by 31 October.

    The standard, developed by SWIFT, is expected to improve the quality of transaction data and make both domestic and cross-border payments more secure and efficient.

    All PoS devices must run on Android version 10 or higher to integrate with the national central switch, which will host the software kit for geolocation monitoring and geofencing.

    It added, “All payment transaction messages exchanged domestically or internationally must be formatted in ISO 20022 in line with CBN and SWIFT specifications.

    “All Institutions shall ensure complete and accurate population of mandatory data elements, including payer/payee identifiers, merchant/agent identifiers, and transaction metadata.

    “All in scope institutions must complete migration activities and be fully compliant not later than October 31.”

    The bank said it would begin compliance checks by 20 October.

  • RE VEALED! Only 100,000 POS operators registered in Nigeria , Says CAC

    RE VEALED! Only 100,000 POS operators registered in Nigeria , Says CAC

    The Registrar General of the Corporate Affairs Commission, Hussaini Ishaq Magaji has revealed that only 100,000 Point of Sale (POS) operators have officially registered their businesses with the commission as part of its POS formalization project.

    Magaji said this during the in-house enforcement and compliance training for state offices on Monday in Abuja,

    Magaji said that the training, with the themed “Re-engineering the Commission for Compliance and Enforcement Mandates” would ensure efficient management of corporate entities.

    He called for a paradigm shift in the commission’s operations, emphasising the importance of compliance and enforcement functions beyond the routine registration of businesses.

    “One of the key priorities I identified upon assuming duty in 2023, was the need to bring the commission’s regulatory and management functions to the forefront.

    “This led to the inclusion of compliance enforcement as a key component of my four-point agenda,” he said.

    The registrar-general said that advancements in Artificial Intelligence (AI) could handle routine operational tasks like business registration, freeing resources for more complex compliance and enforcement activities.

    He reiterated the success of the PoS Formalisation Project, which had registered about 100,000 Point-of-Sale operators under the requirements of Section 863 of the Companies and Allied Matters Act (CAMA) 2020.

    According to him, the project aims to formalise at least 250,000 operators in the sector as part of broader efforts to regulate the estimated 40 million micro, small, and medium enterprises (MSMEs) in Nigeria.

    “Formalisation is the first step for legitimate business operations and access to government interventions.

  • CBN gives directive to start monitoring all PoS transactions

    CBN gives directive to start monitoring all PoS transactions

    The Central Bank of Nigeria (CBN) has ordered payment service providers to begin the tracking of all Point of Sale (PoS) transactions.

    In a circular to all Payment Service Providers (PSPs) on connectivity to payment terminal service aggregators, the apex bank handed a 30-day deadline to PSPs to regularise with Payment Terminal Service Aggregators (PTSA).

    The circular, dated September 11, 2024, was signed by CBN’s Director of Payments System Management, Oladimeji Taiwo.

    “As part of efforts to mitigate the concems regarding channeling all Point of Sale (PoS) transactions through a single aggregator, the CBN on April 19, 2024, granted a second PTSA licence to Unified Payment Services Limited (UPSL),” the circular partly stated.

    The CBN therefater directed that “acquirers are henceforth required 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)”.

    PTSAs are required to send PoS transactions to only Processors certified by the relevant Payment Scheme, nominated by the Acquirer and licensed by CBN.

    “All licensed Processors must be integrated with both PTSAs, thereby allowing Acquirers the flexibility to choose which Processor(s) and PTSA to utilize 4. All Payment Terminal Service Provider (PTSPs) must ensure that their PoS devices and 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 returns mentioned in items (5) and (6) above are expected to be submitted to the Director. Payments System Management Department, not later than seven (7) days after the end of each month.

    “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.

    “Please be guided accordingly as non-compliance shall attract appropriate sanctions.”

  • After deadline: CAC vows to arrest PoS operators who failed to register

    After deadline: CAC vows to arrest PoS operators who failed to register

    The Corporate Affairs Commission has vowe to clampdown on PoS who failed to register after its deadline expired on September 5.

    The regulatory body reminded Point of Sale operators across Nigeria that the deadline for business registration, initially announced on July 7, 2024, expired on September 5, 2024.

    TheNewsGuru.com reports this was contained in a statement released on Friday, the CAC expressed concerns over inadequate compliance with the directive, despite the large number of PoS operators in the country.

    However, CAC commended operators who have taken steps to formalize their businesses, praising their “positive attitudes” towards compliance.

    The Commission noted with concern the significant number of operators who have not adhered to the directive.

    The statement read, “Recalcitrant operators have refused to adhere to the advice for formalization due possibly to engagements in unwholesome activities or for some reasons best known to them.”

    The CAC emphasised that it is working in collaboration with law enforcement agencies and other relevant stakeholders to implement a comprehensive enforcement and sanction framework.

    The measures may include the shutdown of non-compliant businesses and other severe legal consequences.

    “We are to make it clear that the Commission is working with Law Enforcement Agencies and other relevant stakeholders to deploy comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal consequences,” the statement read.

    The Federal Government, through the Corporate Affairs Commission, had previously set a two-month deadline for POS operators to register their agents, merchants, and individuals with the commission in compliance with legal requirements and the directives of the Central Bank of Nigeria.

    This directive was issued in response to a rise in fraud incidents involving POS terminals and CBN’s plans to prohibit trading in cryptocurrencies and other virtual currencies.

    A report from the Nigeria Inter-Bank Settlement System Plc revealed that POS terminals were involved in 26.37 per cent of fraud incidents in 2023.

    The CAC stated that the registration initiative aims to reduce fraud within the system, as well as combat kidnapping and the payment of ransoms.

  • POS agents, businesses told to avoid delay in CAC registration

    POS agents, businesses told to avoid delay in CAC registration

    Michael Nwabufo (aka Mike Premium), the Ambassador for the Corporate Affairs Commission (CAC), on Tuesday urged Point of Sales (POS) agents and small business to avoid delay in meeting the July 7 deadline for CAC registration.

    Nwabufo, a talent and brand manager, made the appeal in a statement in Lagos on Tuesday.

    He said that business owners must steer clear off anything that could complicate their business operations at the expiration of the window for registration.

    Stressing the importance of the deadline which is five days away, Nwabufo urged businesses to make use of the CAC Special Registration Portal (SRP) or the PCCSIGN platform (www.pccsign.org.ng) to register.

    He described SRP as an innovative solution designed to streamline and accelerate business registration Nigeria.

    “This initiative is a significant step forward, offering a more accessible, efficient, and user-friendly registration process for all Nigerians.

    “We encourage small businesses, particularly Point of Sales (POS) agents, to register via the SRP.

    “This formal registration not only provides legal recognition but also enhances credibility and opens up opportunities for growth,” Nwabufo said.

    He said that the SRP had user-friendly interface while the registration and approval times were also significantly reduced.

    “The portal is designed to cater to users of varying technological proficiency, making it accessible to everyone, including those with limited digital skills,” the ambassador added.

    He added that the CAC had also partnered with the Practitioners of Content Creating, Skit-making, and Influencers Guild (PCCSIGN) platform (www.pccsign.org.ng) to further ease the process and remove all complications.

    Nwabufo said that PCCSIGN platform also offerred a registration platform tailored to the needs of the community.

    He said that PCCSIGN provided an additional avenue for a swift and efficient registration process.

    “The CAC deadline for the registration of POS agents and other small businesses is crucial all registrations must be completed by July 7.

    “The public can register by visiting the Special Registration Portal or the PCCSIGN platform (www.pccsign.org.ng) and follow the provided instructions.

    “There are support teams ready to assist with any questions or challenges you may encounter,” Nwabufo said.

    He advised all stakeholders to meet the deadline to avoid potential delays or complications in business operations.

    The ambassador commended the Registrar-General of CAC, Hussaini Magaji (SAN) and the CAC team for the unveiling of the SRP.

    He said the initiative represented a pivotal step in modernising the business registration process in Nigeria.

    He said that the registrar-general had shown commitment to ensure that every entrepreneur could formalise their business efficiently.

    Nwabufo said that this would contribute to the nation’s economic growth and development.

    Recall that in May, the Registrar-General of the CAC, Hussaini Magaji, stated that Point of Sales (PoS) agents of major fintech companies in Nigeria, including OPay, Palmpay, and Moniepoint, must register their businesses by July 7.

    CAC has stated that it is treating no less than 15,000 applications daily, including on weekends, for its fintech regularisation programme.

  • Millions of naira recovered as Police nab POS syndicate

    Millions of naira recovered as Police nab POS syndicate

    The Katsina State Police Command on Thursday arrested a four-man gang specialized in swapping Point-of-Sale (POS) machines to steal from unsuspecting victims.

    ASP Abubakar Aliyu Sadiq, the Command’s Public Relations Officer, ASP Abubakar Aliyu Sadiq, paraded the suspects during a press briefing held at the Command’s headquarter on Thursday.

    According to him, the arrest was made on May 12, 2024, following a tip-off from the public.

    He identified the suspects as Abdulhakeem Haruna (20), Habibu Kabir (28), Aminu Abubakar (27), and Abubakar Bishir (25).

    The suspects, who are all residents of Katsina, were alleged to have swindled five business owners of a total sum of N4.763 million.

    According to the PPRO, the gang operated by swapping the victims’ POS machines with identical-looking fakes and used them to illegally withdraw money from the victims’ accounts.

    The police recovered four POS machines believed to be part of their loot, the spokesman said, adding that the suspects had confessed to the crime and that investigation was ongoing.

    Katsina State Commissioner of Police, CP Aliyu Abubakar Musa, commended the officers involved in the operation and urged the public to be vigilant.

    He advised residents to report any suspicious activities to the police for prompt action.

    The Commissioner also assured the public of the command’s commitment to apprehending criminals and protecting citizens from their activities.

  • Mandatory CAC registration: Police to arrest illegal PoS operators

    Mandatory CAC registration: Police to arrest illegal PoS operators

    The Federal Government has said mandatory registration of Point-of-Sales operators nationwide will reduce kidnapping and help security agencies arrest recipients of ransom payments from kidnap victims.

    It also vowed that security agencies would go after PoS operators who fail to comply with the directive to register with the Corporate Affairs Commission after July 7, 2024.

    The Registrar-General, CAC, Hussaini Magaji, disclosed this at the formal launch of the CAC registration of agents and merchants of fintechs on Wednesday in Abuja.

    The event also marked the unveiling of a 24-hour service centre to help prospective applicants get a prompt response to enquiries and approvals.

    The government had through the commission on Monday issued a two-month registration deadline for PoS operators to register as corporate bodies with the commission in line with the legal requirements and directives of the Central Bank of Nigeria.

    The action backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020 as well as the 2013 CBN guidelines on agent banking aims to safeguard businesses and strengthen the economy.

    It also came against the backdrop of frequent fraud incidents involving PoS terminals and plans to stop trading in cryptocurrency or any virtual currency by the Central Bank of Nigeria.

  • FG orders registration of 1.9m PoS operators, gives 60 days deadline

    FG orders registration of 1.9m PoS operators, gives 60 days deadline

    The Federal Government through the Corporate Affairs Commission has issued a two-month registration deadline to Point of Sales companies, to register their agents, merchants, and individuals with the commission in line with legal requirements and the directives of the Central Bank of Nigeria.

    The agreement was reached on Monday during a meeting between Fintechs and the Registrar-General CAC, Hussaini Ishaq Magaji, in Abuja.

    According to the Nigeria Inter-Bank Settlement System, there are over 1.9 million PoS terminals deployed by merchants and individuals nationwide.

    Speaking at the meeting, the CAC boss said the measure aims at safeguarding the businesses of Fintech’s customers and strengthening the economy.

    He further stressed that the action was equally backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020 as well as the 2013 CBN guidelines on agent banking.

  • 20-year-old fuel attendant jailed for embezzling money from POS

    20-year-old fuel attendant jailed for embezzling money from POS

    A Jos Magistrates’ Court on Friday sentenced a 20-year-old fuel attendant, Henry Dung to six months imprisonment for stealing N521,000.

    Magistrate Shawomi Bokkos, summarily sentenced Dung after he pleaded guilty.

    Bokkos, however, gave the convict an option to pay a N20,000 fine and also ordered him to pay N370,000 as compensation to the complainant.

    The magistrate said the punishment would serve as a deterrent to other would-be offenders.

    Earlier, the Prosecution Counsel, Insp Ibrahim Gokwat told the court that the case was reported on Aug.28, at the Area Command Police Station Jos by Mr Eric Iheoma, the complainant.

    The prosecutor said the convict was manipulating the POS to make extra money for himself until the company employed an auditor.

    Adding that on further search the sum of N143,730 was found on the convict also a phone, shoe, sandal, and some clothing which he claimed he used the money to buy.

    The offence, according to the prosecutor, is punishable under the provisions of the Plateau state Penal Code Law.

  • Fix service charge, go to jail or pay N10 million fine – FG warns PoS agents

    Fix service charge, go to jail or pay N10 million fine – FG warns PoS agents

    The federal government has issued out warnings to Point of Sale, PoS agents, saying anyone found guilty of price fixing will pay a fine of up to N10 million or three months prison sentence.

    The Federal Government’s threat was made public by the Federal Competition & Consumer Protection Commission via a statement signed and released by its Executive Vice Chairman, Babatunde Irukera.

    Recall that PoS agents under the aegis of the Association of Mobile Money and Bank Agents, AMMBAN, had increased their service charge for withdrawals and deposits.

    Consequently, the FCCPC entered an Order & Notice (ONC) served to the executives of AMMBAN, prohibiting PoS agents from further implementing the price increment.

    The Commission warned that the disobedience of its ONC would be met with severe punishment.

    FCCPC explained that violating its Order would attract one million Naira fine for individual PoS agents, and N10 million for corporate agents or a three months prison sentence.

    “The FCCPA provides the Commission with statutory tools to ensure compliance and penalise law violations. As previously noted, some of these penalties are stiff.

    “The Commission advises PoS operators that violation of an order of the Commission attracts additional consequences apart from the underlying illegal conduct that is the subject of the order such as up to N10,000,000 for corporate entities; and N1,000,000 and or a prison sentence of up to three months for individuals”, the statement contained.