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UBA, Zenith Pioneer Implementation of Chargeback on PoS Transactions

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UBA and Zenith bank are pioneering central bank of Nigeria (CBN) directive on implementation of 24 hours chargeback dispute resolution mechanism on transactions on point of sale terminal, Nigeria CommunicationsWeek has learnt.

Chargeback is when a customer buys goods or service at a point of sale terminal and was debited but the PoS did not print receipt showing a successful transaction, because the transaction was decline, the merchant will refuse to give the customer the goods he requested for, while his account has been debited. In this situation, the customer will have to go to his own bank which is not the bank of the merchant and file a claim of refund that is called chargeback.

Before the new CBN directive of its resolution within 24 hours, the problem is resolved by the customers’ bank logging it against the merchant and the merchant bank needs to investigate if that claim is correct or not, if it is true he did not give the customer the value, he will attest to the bank that it is true and for his bank to return the money to the customer. This process takes weeks to resolve.

Against the frustration merchants and financial inclusion agents are facing as a result of issues around chargeback on PoS transaction that CBN gave directive to banks to implement 24 hour chargeback dispute resolution mechanism of which UBA and Zenith have started implementing.

Commending the two banks, Fasasi Sarafadeen Atanda, managing director, Ecosystem Hybrid Network, an agent network operator said that UBA and Zenith are in the first to begin the implementation of the CBN directive that anytime customers have dispute issue the only thing they need to get from Agent is to get a receipt supporting that decline.

“Once you have that receipt, take it to your bank and collect your money, they are well prepared to follow the money anywhere it hangs whether it is hanging at processor, or banks, they can view it from their backend to know where it is hanging and retrieve it to credit the customer.

“This will reduce the time customers waste waiting and also engender truth in the system, which will help agents grow customers because they know when they have issues their bank will attend to them unlike previously when their bank will ask them to go back to follow up Agents.

“We are going to see fewer cases of police arrest when there is no dispute; there won’t be any need to invite police.

“The only thing that remains is for all the banks to commence implementation of this CBN directive on chargeback.

“PoS usually produce two receipts, merchant copy and customer copy, if it shows approved definitely the customer must pay but if it show decline customer cannot pay. It is the decline receipt that should be taken to the bank for refund.

“Financial inclusion in Nigeria is driven through three providers that includes bank led, mobile money operators’ led and mobile network operators’ led these are the digital financial services channels.

“For bank led, we have solution for dispute now and we encourage all of them to abide by that, the same thing should happen to mobile money operators’ led as they don’t have branches everywhere where customers can go but they have aggregators they should work with their aggregators, provide their addresses and location for customers to go in case of dispute arising from cash back.

“As mobile network operators’ led is gradually coming up, they should put in place dispute resolution mechanism just like the banks have just done.

“With this dispute resolution mechanism in place there is going to be a surge in the use of agents in the financial inclusion programme. Trust have been militating the use Agents for transaction making people to rather go to the banks than use Agents for transactions.

“Agents are not legally allowed to intervene on behalf of customers in case of dispute because they are regarded as third party.

A lot of agents have closed down as a result of dispute issues with customers, but with this directive been implemented by the banks; they will start opening shops again,” he added.


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E-Financial

FG Sacked IST Members over Fraud- Ahmed

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Mrs Zainab Ahmed, minister of Finance Budget and National Planning, has said the Federal Government sacked some past members of the Investments and Securities Tribunal (IST) as they indulged in corruption.

FG Sacked IST Members over Fraud- Ahmed

Inaugurating the new members, the minister charged the new members to eschew corruption and be forthright.

Bar. Azi Amos Isaac was appointed as Chairman for a five year term and Bar. Nosa Smart Osemwengie, was re-appointed as member for a second term of four years.

“The problem with the tribunal has been infighting amongst members, lack of industrial harmony and series of complaints bordering on maladministration.

“This has been the bane of the tribunal and a source of embarrassment not only for the Ministry of Finance but for the government in general,” Ahmed said.

The new chairman, Azi, assured the finance minister that, “the teething issue of restiveness has been addressed since he assumed duty,” adding that, “The place is calm and the staff have become very supportive.”

Azi said since 2003, the tribunal has “given judgment in the value of assets worth over N844 billion and that from 2017 to date, they have given decisions in monetary value totalling over N28bn.

“It has not failed in its adjudicatory responsibility.

“It has carried out its assignment with candour and integrity and intends to improve on what has been on ground.”

 


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CBN Bans Customer-to-Customer Forex Transfer

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Central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another.

CBN Bans Customer-to-Customer Forex Transfer

According to the apex bank, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.

Offshore forex inflows from other Nigerian banks and internal account to forex transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.” Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

 


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Stanbic IBTC, Standard Bank, Listed Among Top African Corporate Brands

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Stanbic IBTC Holdings PLC and its parent company, Standard Bank, have emerged amongst the top winners of the 2020 Tech Times’ Africa LinkedIn Corporate Brand Awards.

The Stanbic IBTC Group emerged the second position in the category, with total votes of 3,515, out of 24 firms nominated for the award. Standard Bank placed the fourth 2,494 votes.

Nominations for this award opened to the public on July 1, 2020 and closed on July 14.

Shortlisted nominees were announced on August 24 while voting commenced immediately and voting ended on September 8, 2020.

The Corporate Brand Awards was instituted by Tech Times’ Africa, an online platform for leading technology, innovation, and startup stories.

Expressing his delight on the awards, Dr Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC, said that both Stanbic IBTC Holdings PLC and Standard Bank had been deliberate and consistent in making a remarkable impact in Africa’s financial sector.

“Our sincere appreciation goes to the organisers of the Africa Corporate Brands Awards and to every member of the public who voted. This is a reflection of the high level of trust and confidence that the public has reposed on us,” he added.

Dr Sogunle further said that Stanbic IBTC Holdings PLC would remain relentless in portraying the organisation as one of the most influential corporate brands in Africa.

He stated: “Stanbic IBTC Holdings PLC and Standard Bank have relentlessly contributed to driving the growth and development of the African financial ecosystem. These awards affirm our efforts, and we are encouraged to raise the bar continually.”

The Africa Corporate Brand Award is designed to identify and recognise outstanding companies. It also projects their achievements and impacts on African society and the world at large.


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