Customers to pay more for PoS transactions – TheNigerialawyer

BANK customers are to pay more for Point of Sale (PoS)
transactions. This follows a Central Bank of Nigeria’s directive to
banks to charge N50 Stamp Duty on individual transactions.

The directive on the Unbundling of Merchant Settlement Amounts
was contained in the CBN circular to banks, processors and
switches, titled: “Review of Process for Merchants Collections on
Electronic Transactions”.

The new policy stipulates Stamp Duties Payment on individual
transactions that occur on PoS, rather than previous plans where
charges occurred on aggregate transactions.

The circular signed by CBN Director, Payments System Management
Department, Sam Okojere, authorised banks to unbundle merchant
settlement amounts and charge applicable taxes and duties on
individual transactions as stipulated by regulators.

Merchant Service Charge was also reviewed downward from 0.75 per
cent (capped at N1, 200) to 0.50 per cent (capped at N1, 000).

The CBN and Nigeria Interbank Settlement System (NIBSS) are
working closely, including setting emittance processes that ensure
the stamp duty charges for PoS is collected.

In a NIBSS report titled: “Returns on Stamp Duty Collection for
Merchant Transactions”, the payment agency said the new stamp duty
payment plan is in line with the provision of the Stamp Duties Act
and Federal Government Financial Regulation 2009.

The policy, it added, was aimed at ensuring strict adherence to
the CBN guideline communication on the subject, collection and
Remittance of Statutory Charges on receipts to Nigeria postal
Service under the Stamp Duties Act dated 15th January 2016.

The procedural processing guide for stamp duty Charges for PoS,
web merchant and all deposit money banks (DMBs) should download
daily PoS/Web settlement report from their respective processors
settlement file transfer portal.

Also, the PoS and web settlement processing officer shall ensure
that stamp duties are correctly processed daily by downloading
daily PoS/web transactions valued at N1,000 and above, noting the
count of these transactions; multiply the count of these
transactions by N50 and pass the corresponding debit/charge to the
respective merchant accounts.

“The debit should be passed to the merchant accounts account at
the point of PoS/ Web merchant Credit/Settlement to mitigate
against the inability of the Deposit Money Banks (DMBs) to
successfully secure these daily stamp duties charges and remit as
expected. These charges are expected to be deposited into the
already opened stamp duty collections account at the various DMBs
and should form part of the weekly Stamp Duty rendition by the DMBs
to NIBSS,” it added.

The NIBSS data showed the total volumes of PoS transactions for
2017 stood at 146.3 million which was worth N1.4 trillion; 285.9
million transactions in 2018 worth N2.3 trillion and 187.7 million
for six months- January to June 2019 worth N1.4 trillion.

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