Nigerian banks in the past year paid out almost N400 million as cashback on the use of point of sale terminals even as four banks were last year sanctioned for non-reversal of dispense error within the specified 48 hour timeframe given by the Central Bank of Nigeria (CBN).
Speaking with journalists at a press conference organized by the Nigeria Inter Bank Settlement System (NIBSS), CBN Assistant Director, Payment Policy and Oversight, Banking and Payment System, Shola Agboola noted that following the issuance of a circular directing banks to install and automize auto reversal, the apex bank had found four banks wanting.
“When we carried out our oversight function on the banks to ensure at they have done what they were asked to do, four banks were penalized and sanctions last year, he stated adding that “a situation whereby customers will have a problem, they go and complain and the bank will not attend to them can no longer continue.”
Also speaking at the press conference, NIBSS Executive Director, Business Development, Mrs Christabel Onyejekwe noted that the payment of cashback to bank customers have been stopped in December 2015 but will be replaced with the loyalty engine which will give out points for PoS usage.
The cashback was introduced in 2014 as an incentive for customers to use their cards for payments and to drive the usage of PoS, customers are paid back 40 per cent of the 1.25 per cent that merchants are charged on POS usage.
Onyejekwe explained that the difference between the cashback and the loyalty engine is that one gives back cash and the other records points that can be redeemed at a later time.
She noted that of the 120,000 PoS terminals in the country, only about 100,000 are connected to the NIBSS platform and only 62,000 are active. She added that NIBSS is talking to stakeholders to withdraw the dormant PoS from circulation.
Meanwhile, banks as well as merchants will on Thursday this week be given awards for their contributions towards driving the cashless programme at the CBN Electronic Payment Incentive Scheme Efficiency Awards.
Source: Leadership
