Rising PoS transaction failure worries bank customers – The Punch

Rising PoS transaction failure worries bank customers – The Punch

Read All Newspapers in one Place - Download our App for free. DOWNLOAD


 Ife Ogunfuwa

Many Nigerian bank customers have expressed concern over the recurrent failure of Point of Sales’ transactions.

Findings showed that in most cases when the transactions on PoS terminals failed, bank customers were debited and the transactions were not reverted.

Read All Newspapers in one Place - Download our App for free. DOWNLOAD

Some of the bank customers, who shared their disappointment with The PUNCH correspondent, said getting a refund after failed transactions were tedious as complaints did not yield a positive response.

In some cases, the customers have had to forego their savings in situations where their banks did not reverse the transaction.

Despite assurances of automatic reversal within 24 hours, banks customers said it took more than a month to get a refund.

A Lagos-based bank customer, Jonathan Eno, said the first attempt to use a PoS terminal to pay for some drugs worth N7,250 at a pharmaceutical store close to his place of work was not successful.

However, he said he was surprised when he received a debit alert from his bank instantly.

According to him, he waited for about 20 minutes for a reversal but when he got none, he had to pay for the goods with cash.

“I reached out to the customer services agents of the bank offline and online and it took up to a month for the reversal to be effected. Right now, payments on PoS is not for me. I will rather make payments with cash than with my debit card,” Eno said.

An Ibadan-based entrepreneur, Mojisola Adedokun, also shared her experience, saying all her savings were lost when she tried to pay for some groceries with her debit card.

According to her, the payment was declined twice and a total of N12,000, was debited from her bank account.

“The N12,000 was all I had left in my bank account and it was not reversed. It was back and forth with the bank for two weeks before the money was returned. I had to borrow money from friends to survive during that period. If cashless payment is not working, the government should abandon the PoS and let us keep paying with cash,” she lamented.

Stanley Amaziro, a creative writer, also complained of a declined transaction of N3,000 that was debited from his bank account.

Gideon Ogbedoze, a public health expert, complained of none reversal of N5,080 that was wrongfully debited from his account for more than a month despite declined payment on PoS.

Meanwhile, checks by our correspondent showed that PoS transactions recorded a high failure rate of 29.23 per cent as of 2.59pm on Monday, in which about 157,034 transactions have been declined.

Transactions on PoS terminals in the country have consistently recorded high failure rate above 15 per cent in the past one month.

Speaking in Lagos recently, the Acting Chief Executive Officer/Managing Director, Nigerian Inter-Bank Settlement Scheme, Mr Niyi Ajao, said it had upgraded its systems to accommodate an anticipated 100 per cent rise in PoS transactions this year.

He noted that the recent glitches experienced in PoS transactions were due to the upgrade, assuring card users that the recent payment reversal issues would be resolved in a few days.

Addressing journalists, he explained that the agency had been able to stabilise the system after meeting with other stakeholders in the payment systems value chain.

 “In 2018, we had 285 million PoS transactions and that was the highest ever recorded in the country. We are expecting that the figure will double in 2019 because 2018’s figure doubled the figure recorded in 2017 and that was why we embarked on an upgrade of our systems,” he was quoted as saying.

“A system glitch happened in course of trying to upgrade capacity and unfortunately for us, other players in value chain had issues around that period and that compounded the problem. We started noticing the issues around December. The failure rate, which was previously at 13 per cent climbed to around 16 per cent.”

Ajao added, “Effective from March 22, PoS transaction time-out period would be increased to 45 seconds from the present 15 seconds to reduce the failure rate significantly. Banks have also agreed to dedicate a particular period of the day to treating reversal complaints to clear the backlog. We hear the complaints of Nigerians and we assure them that they would be resolved with the next few days.”

Copyright PUNCH.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]


Read More