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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