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Central Bank of Nigeria Mandates New Rules for Point of Sale Operators
Central Bank of Nigeria Mandates New Rules for Point of Sale Operators....KINDLY READ THE FULL STORY HERE▶
The Central Bank of Nigeria (CBN) has issued a directive requiring all Point of Sale (PoS) operators to route transactions through licensed Payment Terminal Service Aggregators (PTSAs). This move aims to enhance the tracking and management of electronic transactions across the country.
A circular released on the CBN’s website on Thursday outlined the details of this directive. The CBN indicated that this decision addresses concerns about channeling all PoS transactions through a single aggregator. To facilitate this change, a second PTSA license was granted to Unified Payment Services Limited on April 19, 2024.
New Guidelines for PoS Operators
The CBN’s directive includes the following key points:
- Transaction Routing: All acquirers must route transactions from PoS terminals, whether physical or electronic, through any CBN-licensed PTSA. This ensures that transactions are processed securely and efficiently.
- Certification of Processors: PTSAs are required to send PoS transactions only to processors that are certified by the relevant payment schemes, which are nominated by the acquirers and licensed by the CBN.
- Integration Requirements: Licensed processors must integrate with both licensed PTSAs. This allows acquirers to choose their preferred service providers, ensuring flexibility in transaction processing.
- Configuration Standards: Payment terminal service providers must configure their devices and applications to work seamlessly with any PTSA chosen by the acquirers.
Reporting Obligations
The CBN has also established reporting requirements for both PTSPs and PTSAs:
- Monthly Reports from PTSPs: Each payment terminal service provider must submit monthly reports detailing the number of merchants and agents they manage, as well as the PTSA services utilized.
- Monthly Reports from PTSAs: Each PTSA is required to submit comprehensive reports of all transactions processed through their platforms. These reports must be sent to the Director of the Payments System Management Department within seven days after the end of each month.
Compliance and Deadlines
The CBN has urged all Payment Service Providers (PSPs) to regularize their operations with the PTSAs within 30 days of the directive. The bank has warned that non-compliance with these new rules will result in appropriate sanctions.
Recent Developments in the Industry
In related news, the Corporate Affairs Commission announced on July 7 that all Point of Sale operators in Nigeria must register with the commission before September 5. This move is part of ongoing efforts to enhance the operational standards of PoS systems in the country.
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