POS business has received a wide spread acceptance since it came on board because it helps to unburden the stress people and financial institutions go through. With ATM cards you can make withdrawals and transfer money through POS machine. However, the continues failure of transactions through POS terminal is a major concern to The Nigerian Inter Bank Settlement System (NIBSS), because it is affecting the cashless policy of the Government and financial inclusion progress by banks.
As the business is booming, so also are there many challenges to tackle, it is a well known fact that no business is without issues. You have to be aware of these situations so that you will know how to handle them when you start the business. The challenges mostly has to do with banks but you can do yourself the favour of getting a good POS terminal in other not to add to it. Some people go for any thing thrown their way or anything called POS especially if there is little money or nothing to pay for it. Can you compare 2G to 3G or 3G to 4G do they work the same? Absolutely No! So also it is with POS terminal.
HERE ARE SOME OF THE CHALLENGES OF POS BUSINESS
- Cost of POS terminal
- Delay in the reversal money
- Banks/customers problems
1. COST OF POS TERMINAL
Most people intending this business at first consider the cost of POS machine. Tell someone to buy POS terminal #70,000 now he/she will run without looking back. Forgetting that having a cheap POS system will cause a set back in the long run. Rather they prefer to register for a pos than buy a good point system for themselves. Not getting a good POS for your small business will cause you many troubles because it has many drawbacks.
2. Delay In The Reversal Of Money
The main challenge of POS terminals is the delay in the reversal of credit to account owners (cardholders). Many at times the account of persons making withdrawals are debited yet the money reversal is not done within 24 hours as suppose. Because of the frustrations people get by using POS transactions many have stopped patronising the system. Sometimes customers account are debited even without the completion of such transactions.
At this point customers will have to go to their different banks to fill error form. The time for reversal is always too long due to the number of processes involved. It can take 2 weeks even up to a month before the reversal is completed. What happens to the people who needed the money urgently to safe situations definitely with this kind of experience such persons will not only want to use POS for anything again but will further advise others against it.
Some Customers Care officers in the bank are not making things easy for POS agents. They advice customers who go there to make complains to stop using POS terminal for the meantime because they find it difficult to process the reversal. Thereby making it look as if it is the POS agents that are trying to corner customers’ money.
3. NETWORK PROBLEMS
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Another challenge is network problems. You need a reliable Internet connection. Just as we experience network failures from mobile lines such MTN, Globacom, Airtel, 9mobile etc. So also POS machines are faced with network challenges. That is why it is advisable you use a POS terminal that is strong in network. I explained this earlier in my post on how to start POS business in Nigeria.
When a POS agent carry out a transfer, the money is expected to drop on the receivers account but due to network issues the money will not drop on the receivers account or drop back to the POS agents account. The agent will have to go to her bank and lay complains for a reversal meanwhile he or she needs the money for business and the time spent in the bank is enough to have done good transactions.
4. BANKS AND CARDHOLDERS ARE ALSO RESPONSIBLE FOR POS TERMINAL FAILURE
Banks have a lot to do about failures of POS because they have refuse to upgrade their systems to accommodate the growing population of users. Although on their part they heap the blame on Interswitch who accounts for half of electronic payment transactions in Nigeria. POS transaction failure is high with verve cards according to report.
On the part of individuals, some card holders who think they have money in their accounts will take their card to POS only for it to say insufficient funds. Although this may not be 100% correct because I once used my card on POS and it kept on saying insufficient fund whereas there was money inside. The transaction failure was as a result of connectivity failure. Eventually, I took the card to ATM and I was able to make withdrawals.
POS software can be hacked and then your customers details copied. This is a very huge security treat because it can land you in police custody. To avoid this ensure that the agency company you are buying POS terminal from provides antivirus for your POS terminal.
NIBSS and Stakeholders in this business are working to improve the performance of POS terminals transaction in other to gain the confidence of customers. This is gradually yielding results because the number of POS patronisers are increasing after a decline earlier this year.
Although it is not up to a decade Nigeria introduced POS terminal usage, the manner and the way Nigerians embraced it is very encouraging. But when every challenge has been taken care of the number of people using POS system will greatly increase. It will in turn provide job for the majority of the people.
In case you need a POS terminal with good connectivity you can contact us. The price is #70,000 non negotiable.
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