Payment service providers have been instructed by the Central Bank of Nigeria, CBN to start tracking all Point of Sale (PoS) transactions.
The apex bank gave all Payment Service Providers (PSPs) a 30-day deadline to regularize with Payment Terminal Service Aggregators (PTSA) in a circular regarding connectivity to PSPs.
Oladimeji Taiwo, the Director of Payments System Management at CBN, signed the circular, which was dated September 11, 2024.
“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.
However, the CBN 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.”
