POS business is a cash minting business which has silently been going on without much awareness but now gaining serious popularity. This is due to increase in the number of consumers who are spreading the news to others who want a life of convenience and ease.
If you have ever gone to ATM post and cue under hot sun or under tain them it is a clear indication that this business will thrive well any day ant time. People now have a good substitute to cash withdrawal and transfer through pos.
The business is very lucrative. It is a known fact that trading on money or money related venture is very profitable. This is a business that can provide jobs to thousands of people especially the youths. That’s why did post is coming up in other to encourage people into this viable business.
HOW TO START POS BUSINESS
If you have been looking for opportunity to earn money through POS or you want to do a MOBILE ATM CASH BANKING business in Nigeria an opportunity has presented itself . A step by step detailed guide is outlined in this post. So many small businesses are now using POS machines for their transactions. Example shops, supermarkets etc.
You have to start by getting a place or if you operate a shop you increase your customers or be sure you have a good number of them. Go to the bank and process form for the machine or buy one from a reliable agent.
POS (point of sale) also called point of purchase (POP) it is a device that allows local debit cardholders make payment for goods and services mostly in a retail location. This automated It is a very good automated product because it reduces the stress of carrying cash, transaction with cash etc. You also will receive instant notification/confirmation of goods and services payment.
POS accepts debit/credit cards the same way ATM does. Buyers of goods can pay directly to a sellers account without using cash.
It is not just for payment only but can be customized for bill payment such as airtime (recharge card), DSTV, GOTV,. POS can also be customized to collect School fees, rent, tax, donations etc.
CRITERIA FOR OBTAINING A POS MACHINE
- Have a sales point
- Possess a registered name
- A passport photograph
- Get it on lease or pay cash
HOW TO GET POS FROM BANKS
- Have a business name
- Account number
- Business email address
- Phone numbers
- And some other small details.
You will be directed to the account officer. He will start processing within 72 hours. Within 14days you will receive the POS. But you will be required to sign a POS agreement document with the bank.
In case you don’t want to collect from banks; you can easily purchase the machines from agents who are licensed to sell them. The cost of POS machine used to be between #90,000-#100,000 but has now dropped. All the services you plan to do are already programmed into it.
THE BANKS TO GET THE POS MACHINES ARE:
Zenith Bank, First Bank, Access Bank, Ecobank, Skye Bank, Fidelity and Diamond bank etc. Each bank has its own mode of operation you just have to go to them one on one to get details on what is required.
Banks give out the POS machines free. I mean you don’t have to pay anything, however, terms and conditions apply. For instance, some banks can only give you when your customer base is from 1,000 and above. Another one when you can realise one million Naira a day.
Choose a bank that has Olympos example First Bank so you can be monitoring every transaction you make on pos as it drops.
OTHER PLACES TO GET POS MACHINE
Micro Finance bank: some microfinance banks like Fortis Mobile gives out pos machines. But you have to register as agent mobile money company.
INTERSWITCH: Interswitch is instant debit and credit but it does not accept visa cards for now.
COMMISSION FROM DIFFERENT AGENCIES
AGENCY BANKING SERVICES AND COMMISSION
- Cash withdrawal – #150
- Cash deposits #150
- Transfers – #150
- The #150 commission you make on every transaction is the same for all banks. This is how it used to be before.
It is now 1% deduction across the board on every business, the fee is 0.75% while Maximum Charge on Pos (CAP) that used to be #2,000 is now #1,200.
NOTE: Commission can be changed at anytime find out the current charges from your agent.
FOR RECHARGE CARD PRINTING
- Etisalat 3.5%
- MTN 3.0%
- AIRTEL 4.0%
- Globacom 6.0%
FOR DATA BUNDLES
- MTN 3%
FOR BILL PAYMENT
- DSTV 2%
- TSTV 2%
- GOTV 2%
- PHCH 2%
- STARTIMES 2%
- Same goes to any other company used.
- WAEC 6%
WHERE TO ESTABLISH POS BUSINESS
Rural Communities: you will agree with me that rural communities have less number of banks or financial institutions as such establishing a POS business will be a great success. Many parents that want to send money to their kids for school fees, upkeep and other commitments will gladly embrace this business. Others who travel downtown to carry out financial transaction will be relieved.
Places Where ATM are always crowded or in places where there are shortages of banks/ATM post. Human beings are always in a hurry as such not everyone likes queing up in ATM post if they see alternative they will gladly accept not minding the charges.
I doscovered that the business thrives well close to markets and banks. Sometimes bank ATM will show insufficient fund at that time many people who wants to make use of money will rush you.
In your business premises if it handles large money or has a good number of clients.
HOW TO SUCCEED IN POS BUSINESS
Do not collect high charges. You can put #200 for a ten thousand Naira transaction that is 2% on every monetary transaction.
Always be available at all cost in your location because if you keep absenting yourself clients will think that you are not serious.
since it involves money you have to position it in a place that is safe. So that hoodlums will not use you shine by robbing you.
Don’t accept large amounts for security reasons except you are well secured because if some bad guys know that you handle large amount, they may strike.
CHALLENGES POS BUSINESS
Power or source of light. Most rural communities do not have light at all nor steady light so you will have to spend more on fuel to power your generator after purchasing one. In other to keep your business running and your customers smiling. The business involves the use of a machine and has to be powered every time.
Read Also: Businesses To Do Abroad And Make Big Money
Network issues: one of my friends was telling me how she got to one school about commencing transactions there was no network she battles for a while at the end she excused herself and told the proprietress that she will be back when the network comes up. Hmmmm! anyway, there is a way you can use your phone to do the business so you can avoid embarrassment. I mean alongside with the machine
Some people say phone transfer is better than pos but big Companies with many staff needs pos. Phone transfer is risky and very frustrating. A network is a major challenge. Some alerts take hours to come and sometimes you get a reversal of the money a customer has already confirmed you posted.
Theft/robbery: it involves money-making you to be in fear of attack because you are exposed to it. Sometimes making you spend more money because you have to engage people to watch or keep off bad people.
Inability to control the crowds that gathers around you.
HOW PROFITABLE IS POS BUSINESS IN NIGERIA
There is a good profit in POS business because it involves several services. With pos you can print and sell recharge cards. You can engage 20 people or more to be supplying the vouchers to. Only this one alone provides heavy gain not to talk of when you calculate other services rendered in a day.
The money you make from commissions from banks and cable is enough to make you financially free. Whatever bank charges you is not directly from you but your customers bear the broth. You have to charge along banks commission better put it determines your charges.
WHY YOU SHOULD START POS BUSINESS
- As said it is lucrative. The demand for all the services is high meaning plenty overturn for you which guarantees a huge profit.
- It is not a complex business, the processes involved are straightforward. Meaning the business can be done by anybody.
- You would have rendered help to people who spend so much money and time to get to where the can receive such services
- The demand for the service is high meaning more money
- It is sustainable because the consumption of these services will always be needed
- POS business is not yet crowded
HOW MUCH IS NEEDED TO START POS BUSINESS
Depends on the services you want to be rendering but in all, you will need not less than #200,000 for a start. POS will take #100,000 for purchase. You can do it at home but if you are renting a place you will need #400,000 and above for a start.
For those who collected the machines from banks and are using it for their business transactions such as supermarkets, they have nothing to pay but meet-up with laid procedures.
The business sales itself, create awareness or let people know your business. Next time they will be the ones coming to do business with you.
You can approach institutions, religious bodies, market etc and make a deal with them.
WE SALE POS MACHINES YOU CAN CONTACT US FOR YOUR PURCHASE, THANKS
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