The Association of Point of Sale Service Providers (POS) may suspend and cripple banking operations in the country if the Central Bank of Nigeria and the FCCPC fail to immediately intervene in the alleged exclusivity practice by Verve International and Interswitch Limited.

The Association disclosed this in a statement signed by Yomi Idowu, Communications Consultant to the Association.

According to Idowu, the POS operators have written a letter to protest the alleged persistent unlawful decisions of the two companies, noting that the actions of Verve and Interswitch negate ‘extant rules and regulations of the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Act (FCCPC) 2018.

The Association of POS Service Providers emphasised that ‘As representatives’ of a coalition comprising several Central Bank of Nigeria Licensed payment acceptors/acquirers, processors and switches, they would have no option but to suspend acceptance/acquiring, processing and switching of Verve Card transactions.

The Point of Sales Association in the letter was quoted thus: “This decision has become unavoidable due to the persistent and escalating unlawful conduct of Verve International (Verve) and Interswitch Limited (Interswitch) which according to the Association jointly undermine “The integrity of Nigeria’s payments ecosystem, erode the capital base of participating institutions and violate several regulatory requirements.”

The Association highlighted the breaches as including but not limited to: maintenance of an exclusive monopoly over Verve transaction processing; abuse of dominant position in the domestic card scheme market, contrary to section 72 of the Federal Competition and Consumer Protection Act 2018(FCCPCA) and Section 3,4,7,3 of the CBN Guidelines on Operation of Electronic Payment Channels; imposition of scheme fees in excess of the regulated Merchant Service Commission(MSC) share attributable to acquirers under extant CBN regulations and; unauthorised and unlawful debits from settlement accounts of Acquirers, and Processors/Switches.

The POS Association recalled that its members contributed immensely to building the acceptance and growth of Verve cards at enormous cost to its members in compliance with the CBN regulations without subsidy from Verve and Interswitch as a domestic scheme in Nigeria.

Mr Idowu concluded that “Ironically, the association emphasised that other card scheme operators have since abolished all forms of exclusivity in compliance with the CBN regulations.” (The Nation)

Update news