When the Central Bank of Nigeria (CBN) introduced its cashless policy in 2012, it was aimed at reducing the volume of cash in circulation by transforming Nigeria’s cash-ridden process to a digital electronic cashless system where payments and transactions are not necessarily done with cash but by electronic payment means, such as debit or credit cards (MasterCard, VISA, Verve), Internet banking platforms, online payment platforms or gateways and most importantly Point of Sales transactions. However, this initiative has been ridden with a deluge of challenges with what was initially thought to be a panacea now becoming a pain in the neck, Babajide Okeowo reports.
Jide Adu Arulogun was running late for work and needed to get fuel in his car. He, however, did not have enough cash. His friend, who was in the car with him, told him not to worry as he could pay for the fuel with the Point of Sales, PoS Machine. He drove into a Fatgbems Filling Station along Lagos-Ibadan Expressway and asked that his tank be filled with Premium Motor Spirit, PMS. After filling his tank, he asked the attendant to bring the POS Terminal, he inserted his card, ‘Savings or Current’ the attendant asked? ‘Savings,’ he responded and entered his Personal Identification Number, PIN. After a few seconds, the attendant told him the transaction was declined, they repeated the process a couple more times, the result was the same; transaction declined. Arulogun and his friend had to scrap all the cash they had together to pay the attendant, as it was fast becoming an unpleasant scenario.
Not long after they drove out of the filling station, his phone started beeping with some messages, when he checked his phone, he was shocked to see debit alerts from his banks, while the transaction failed at the filling station, he was debited each time the process was repeated at the filling.
“I bought fuel worth of N5,000 and I intended to pay with POS, but each time we tried, it kept telling me transaction declined. Unknown to me, I was debited each time we tried; at the end of the day, I was debited N20, 000. When I went back to the filling station to complain, the attendant told me that there was nothing he could do, that I should reach out to my bank for the debits to be reversed,” he said.
If Arulogun thought that getting to the bank was the end of it, he was mistaken. After lodging a complaint at the bank and he was asked to fill some forms, and was told it would take between eight to 10 business days for the transaction to be reversed.
“I was shocked beyond comprehension. I had thought that I would just walk into the bank and walk out with my money, but I was told it would take up to 10 business days before my money would be returned to me. The money was eventually reversed after 21 business days. I do not think I will
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use a POS machine anytime soon,” he lamented.
Bukky Oguntosin Oladapo went to a Supermarket around her neighborhood to do some shopping. After getting all she wanted, she proceeded to the pay point to pay for the items she bought. She tendered her Automated Teller Machine, ATM, Card to the sales attendant but was told that there was no network.
“I had to leave the things I bought there because the PoS was not working and I was not carrying any cash. When I went back the following day, it was the same thing. The sad thing was that, at the time, I was debited three times of N9, 230 from the POS at the supermarket while it was telling me transaction declined. I have gone to my bank repeatedly, still, it has not been reversed. I think I will stop using a PoS, for now. I am resorting to carrying cash along to avoid unwarranted embarrassment,” she said.
The experience of Teshy Ojarikre Adeyi was not different. He carried out a transaction since 4th of February, 2019 and till date, his money has not been reversed.
“I have gone to the bank twice and yet, nothing has been done, they asked me to fill some forms, that they would reverse the money; they are yet to do so. When I asked them why the delay, I was just fed some cock and bull story,” hecomplained.
Failed Transaction on PoS on the increase- NIBBS
The above scenarios are the lots of many Nigerians, who carry out cash transactions electronically daily either through ATMs, POS and other forms of electronic transaction.
Data obtained from the website of the Nigeria Inter-Bank Settlement System (NIBSS), which holds data in the banking industry showed that failure rate was at 11.97 per cent with more than 133,948 transactions out of 1.118 million done via PoS failing. Data made available showed that the average rate of failure had risen in the first week of February 2019, as only 79.97 per cent of transactions done on PoS platform were successful while as high as 20.03 per cent of the transactions done via the channel were unsuccessful.
Don’t blame us, blame network, banks – PoS operators
PoS operators have been asked to be absolved of blames associated with failed and declined transactions and the unreversed transactions associated with it but to blame erratic network and banks for the problem.
According to Mrs. Onajite Regha, Chief Executive Officer, Electronic Payment Providers’ Association of Nigeria (E-PPAN), “network failure is the major challenge, bedeviling the ATM and PoS machines, leading to failed or declined transactions. Connectivity issue, network failure continue to mar the progress in PoS adoption rate in Nigeria. An independent telecommunication company with its own satellite, which can guarantee maximum uptime solving POS machine no network problems must be the top of priority for banks. Banks must also improve their response to customers’ complaints in cases of failed transactions,” she said.
Similarly, Sarafadeen Fasasi, President, Association of Mobile Money Agents in Nigeria, who condemned the system of transferring the burden of technological failure in the process of payment through PoS on the customer said the situationwas worrisome.
“We are often faced with a situation where transactions did not go through and customers account debited and not reversed immediately, expecting the customer to go to their banks and fill one form or another; this is not acceptable,” he said.
Dupe Gbolahan, who operates a PoS machine, told The Nigerian Xpress that most times, connectivity issues are the bane of the PoS machine. “My machine performs very well but sometimes there are network issues, which hinder transactions, especially after heavy rainfall. Network issue still remains a very big issue because if we are talking about cashless policy, then the banks and network service providers have to be on top of their game. I have had bitter experiences where customers will resort to violence over their failed transactions,” she said.
Recalling an issue that will forever remain indelible in her mind, she said: “There was this man who came here to withdraw some money and the transaction was declined. The man’s wife was in the hospital and he needed some money to deposit at the hospital before they would start attending to his wife. The transaction was declined, he was debited and it took several days before the money was reversed. While he was waiting for the money to be reversed, he was always coming here to complain but there was nothing I could do to help him,” she reminisced.
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Drag erring banks to CBN – Nigerians
For most of the banks, the fear of CBN hammer is the beginning of wisdom. A few months ago, CBN had warned Nigerian banks that any failed electronic transaction without reversal to the customer’s account within 24 hours would attract a fine of N10, 000. The sanction took effect from October 2, 2018.
Owode Simbiat Feyisola took advantage of this provision when she dragged a first-tier bank to the CBN over her declined transactions while she was debited and it was not reversed.
According to her, she made a PoS transaction of N6000 at a filling station and was debited twice to the tune of N12, 000 after being told that the transaction had failed. When she contacted her bank, she was told to wait for 12 days before the transaction could be reversed. Left with no choice and aware of the CBN directive that failed transactions should be reversed within 24 hours or the erring bank would be fined, she fired off a letter of complaint to CBN, copying the bank in question. Ironically, the bank that asked her to wait for 12 business days reversed the transaction within a few minutes.
“I made a PoS transaction at a Total Filling Station. The transaction of N6000 was declined but I was debited twice, amounting to N12, 000. I was left stranded, as there was no means to pay for the services rendered to me. After waiting for 24 hours for the failed transaction to be reversed to no success, I called my bank and I was asked to wait for 12 work days. I don’t have any means of survival within the stipulated waiting period,” she had written.
The bank in question within few hours reversed the transaction and sent her an email to that effect.
According to Oluwaseun Aleshinloye, lack of knowledge most times is why the banks take forever to revert the failed transaction. He urged Nigerians whose transactions are declined and were debited without a reversal within 24 hours to write to cpd@cbn.gov.ng and see how quickly the transaction would be reversed.
“I tell most people that not knowing our rights or not trying to exercise it is why banks will continue to hold us to ransom. If any bank fails to revert your money soon enough, drag them to the CBN and you will be surprised at the speed with which your money will be reverted,” he said.
Similarly, Regha urged Nigerians to acquaint themselves with the process of seeking redress in the event of a failed or declined transaction.
“Customers need to acquaint themselves with the process and demand responsibility from their financial institutions whenever there is transaction failure,” she advised.
With time, it is hoped that the services will improve and Nigerians will embrace it fully.
