THE Central Bank of Nigeria (CBN) has instructed payment service providers to start tracking all Point of Sale (PoS) transactions.
In a circular issued to all Payment Service Providers (PSPs) regarding their connection to payment terminal service aggregators, the apex bank gave PSPs a 30-day deadline to comply with Payment Terminal Service Aggregators (PTSA).
The circular, dated September 11, 2024, was signed by Oladimeji Taiwo, CBN’s Director of Payments System Management.
“To address concerns about routing all 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 stated in part.
The CBN further instructed that “acquirers must now route all transactions from PoS terminals at merchant and agent locations, whether physical or electronic, through any CBN-licensed Payment Terminal Service Aggregator (PTSA).”
“PTSAs are required to send PoS transactions only to Processors certified by the relevant Payment Scheme, selected by the Acquirer, and licensed by the CBN.
“All licensed Processors must integrate with both PTSAs, giving Acquirers the flexibility to choose which Processor(s) and PTSA to use.
“All Payment Terminal Service Providers (PTSPs) must ensure their PoS devices and applications are configured to route transactions through any PTSA, as directed by the Acquirer.
“All PTSPs are required to submit monthly reports to the CBN, detailing the number of merchants and agents they manage, along with the PTSA services used to route the respective transactions.
“Each PTSA must also submit monthly reports to the CBN, detailing all transactions processed through their platforms.
“The reports mentioned in items (5) and (6) above are to be submitted to the Director of Payments System Management Department no later than seven (7) days after the end of each month.
“You are therefore 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.
“Non-compliance will attract appropriate sanctions.”
